Marketing 3.0

1. Marketing 3.0 Resistance is futile... Guy Iannuzzi President, Mentus December 3, 2011 guy@mentus.com

2. Marketing… • The past, present, and future of marketing • What’s changed • What’s not • What’s ahead • Accelerated evolution of marketing tools • What hasn’t worked

3. Marketing Eras • Marketing 1.0 • Product centric Era • Marketing 2.0 • Customer-centric Era • Marketing 3.0 • Relationship-centric Era Ancient History Yesterday Today/Tomorrow

4. Marketing 1.0 • Product centric Era • Product Focus • Selling, the “art of persuasion”, cheating • Top down, one way, mass communication • The relationship is a commodity • The marketer owns the relationship “The Industrial Age”

5. Marketing Paradigm... • One way – marketer to consumer • Companies serve shareholder • Maximize profits • Customers are rational • Informed by sellers • Marketers have the power • Marketers build the brand “A Seller’s Market”

6. Henry Ford

7. Marketing 2.0 “The Information Age” • Customer-centric Era • Information Technology driving marketing • Customer Focus • Product value defined by customer • Developing relationships with customer

8. Marketing Paradigm Customer-centric Marketing • Customer not a participant, but the “target”... • Sophisticated, more effective digital tools • Enable marketer to know everything about the customer • Enable effective top down, one way communications • Positioning enables manipulation of perception • CRM becomes customer relations manipulation

11. “A Buyer’s Market” “Today... we have moved beyond the information age to the age of participation”

12. Marketing 3.0 “The Participation Age” • Participation Era • Relationships driving marketing • Product value defined by customer’s relationships • Customers buy the story attached to your product. ...and the story is easy to find. • Customers look to friends for product advice

13. The Web Becomes Social • Social media gives consumers direct input to brands. • Consumers moving from the informational web to the social web. • The internet has started to move from the ‘what’ to the ‘who,’ moving from wisdom of crowds to wisdom of friends. • We get our news from friends and family. • We find jobs from people around us. • We trust our friends more than we trust the critics.

14. Social Media Stats 3 out of 4 Americans use social technology 2/3 of the global internet population visit social networks 61% of American adults look online for health information

15. History of Social Media

16. Key Social Media Tools • Blogs • Social network websites (LinkedIn, Facebook) • Microblogs (Twitter) • Image share portals (Flickr) • Video share portals (YouTube) • “Mash up” websites (user-customized portals) • Third-party review & Check-in sites (Yelp, Foursquare)

17. Twitter • 31% of users follow a brand • Over 7,800,000 brand recommendations per month

18. YouTube • It is the most powerful on-demand communication platform in existence (OPA study) • It has the potential to be viral • It’s high impact

19. Facebook 750 million

20. LinkedIn • 90 million members in over 200 countries. • Executives from all Fortune 500 companies members. • Purely professional social media forum • Makes it integral to any social media plan

22. Social Media Rules Key drivers of successful social strategies: • Immediacy • It’s a conversation, not a campaign • Must be based on core business goals • Must scale across the organization • Authentic consumer input

23. Testing markets Brands build trust, test markets with immediate social feedback CASE STUDY: Nexxus • Hair care brand Nexxus used social media to test the market • New ProMend product lineto reduce split ends in a few uses • Nexxus reached out to existing brand advocates to test their claim • Asked them to test a free sample and write a review • The product passed the test • ProMend launched with reviews of 4.4 to 4.7 stars • Nexxus posted reviews across ad channels and retailers’ websites • Feedback helped market the product and validated bold claim • Saving them money in potential product returns • Ensuring their ongoing consumer trust

24. It’s a conversation, not a campaign. • Old marketing talked to consumers... • Today more conversation is between consumers • ...than between brand and consumers • Often consumer leads the conversations... • Marketers learning to listen, communicate, and share • Scale increases exponentially as more social tools become mainstream

25. Core Business Drivers Social initiatives must be based on core business goals

26. Core Business Drivers CASE STUDY: Nationwide Insurance • Aligned with core goal:sell more auto insurance. • Gaining executive buy-in – Five core areas important • Governance • Monitoring • Engagement • Commerce • Measurement • Reviews launched in 2009 saw average rating 4.7 stars • Tremendoussuccess: • 40%+ quotes and 103%+ visitors looking for agents

28. Core Business Drivers CASE STUDY: P&G • Consider business objectives and support them. • “Everybody’s speed of choice is one click away” • “Consumers can make product decisions in a click. • “Retailers can change their product offerings online in an instant, manufacturers can provide new content in a click – all this takes weeks or months in a store environment.”

29. Core Business Drivers One of the most acclaimed viral campaigns of 2010 was the Old Spice Viral Campaign... 186 customized video responses led to 107% increase in Old Spice Body Wash sales over the last month

30. Social media must scale Recommendations: • Social media requires new types of organizations • Usually crosses departmental borders • Get ready internally • Focus first on governance and process • Then on education to emerge as a center of excellence. • Standardize with social media management systems

31. Authenticity • The authentic consumer voice can have a huge impact on brands. • The marketer must also present an authentic face • Social media INSTANTLY detects propaganda • Infinite choices make consumers impatient • World class service is becoming the expected norm • When marketers join this conversation, major transformation occurs.

32. The Authentic Consumer Voice • CASE STUDY: Rubbermaid • Customer reviews added to product pages • Looked for one-star and two-star reviews • New antibacterial sink mat • Less stain resistance led to negative feedback • Consumers wanted sink mats to make sinks look better • Rubbermaid fixed problem • Rubbermaid’s response changed customer interaction • Saw company listening and caring • “I am happy that my ‘single voice’ may have made a difference.” • Big win • Creating brand advocates from initially negative experience

33. When Social Media Backfires...

34. Not Corporate Propaganda • BP America • well developed set of social media channels • 45,000 Facebook fans 18,000 Twitter followers • well-edited copy announcing victories and over-emphasized progress. • no conversation, no give and take and no interaction with the community • Fake Twitter account • Satirizing response to spill attracted 37,000 followers • real Twitter account attracted only about 5,500

35. Marketing 3.0 Resistance is futile... Guy Iannuzzi President, Mentus December 3, 2012 guy@mentus.com

36. The Future

37. Looking to the Future ? • No one can know... what the next big thing in social media will be. • The Internet has become a necessary part of people’s daily lives • Social media is exploding in popularity all over the world.

38. Paradigm Change • From a sellers market to a buyers market • Transformation of market research • The emergence of true transparency • Compression of launch windows and strategies

39. Social Media continues to evolve • Major brands take social programs seriously • Not just retail • Brands ranging from highly-regulated insurance companies to consumer packaged goods to business-to-business brand • Exploring new ways to implement social initiatives • Focusing on finding their authentic voices • Creating infrastructures • That involve full organizations

40. Mobile First • Mobile devices ...will overtake and supplant computers. ...more interaction on iPhones and iPads than computers. ...also by companies and the Web. • IT/service solutions defined by mobile consumption ...online shopping to effortless, paperless transactions and check-ins ...watching and creating videos with friends abroad ...in-class learning and collaboration ...managing health in real time….

41. Looking to the Future • Social media provides good practices for facing new challenges • Requires effective marketing efforts and authority-building • Makes all marketing plans utilizing it more effective • What make social media effective, makes you better marketers overall • A social-media strategy should be integral to any complete marketing plan • Service companies must be on cutting edge • Social media is not just a phase • its an integral part of today’s marketing

42. Looking to the Future • In 2012... • More companies go beyond using social channels for building awareness and providing support. • Use social-media engine for strategic decisions and execute objectives, marketing plans, product roadmaps. • Expect a surge of service providers collecting social networks, video, mobile capabilities, cloud services and analytics, with their own unique services and proprietary capabilities.

43. Marketing 3.0 Resistance is futile... Guy Iannuzzi President, Mentus December 3, 2012 guy@mentus.com