Lecture 3 of my Interactive Marketing course - Traditional vs. Interactive Marketing.

1. Traditional vs. Interactive Marketing
– Part II

2. Interactive Marketing

3. What is Interactive Marketing?
 The refined form of pull marketing that brings
consumers to brand through conversations, interactions
and electronic word of mouth
 It gives the consumer the ability to craft and control the
message
 Much more creative than traditional marketing
 It builds real relationships with consumers that provide
the brand with insights and understanding of how a
product is used
 We rely more on TECHNOGRAPHICS than demographics

4. Technographic Segmentation
 Traditionally market researchers focused on various
demographic, psychographic, and lifestyle schemes to
categorize and describe similar clusters of consumers as
target markets
 As information and communication technologies emerged as
a central focus and defining force in a wide range of
occupations and lifestyles, market researchers realized the
need for a segmentation scheme based on the role that
technology plays in consumers' lives
 Technographic segmentation was developed to measure and
categorize consumers based on their ownership, use patterns,
and attitudes toward information, communication and
entertainment technologies.

6. Conversations Start With People
THERE IS STILL
ONE TRUSTED
MEDIUM
LEFT IN THE
WORLD
MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT

7. The New Way

12. The Truth About Interactive Marketing
 It’s not about you, it’s about
your audience
 Strategy must be based on
customer behavior
 The focal point needs to be
consumer insight – How can
you add value or create a
more engaged audience?
 This is about building a
REAL relationship with your
customers; customers want
credibility

13. The 4 P’s Have Evolved!
Permission enables Proximity is more Perception – Participation –
marketers to begin about enabling big Understand the Embrace the idea
the dialog with ideas that have vantage point of the that your customers
consumers as a scalability at the customer and and prospective
true, voluntary local level. understand our customers are
relationship perception may not engaged in
be 100% accurate conversation that
affects you.

14. Consumers Control The Message
Blog
PodCast Conversation
Video Collaboration

15. I have a problem I need to solve I want to be better looking
I can save the environment I want to be more
I need to impress my boss efficient
I want to
smile
I need to
I want to
know more
laugh
I want to be
entertained
I want to be more popular
I wish I could do more to help people
I want to make my friends laugh

16. The New Rules of Engagement
One‐way communication Brand is dialogue
Brand recall is holy grail Customers determine brand value
Group customers by demographics Group customers by behavior
Content controlled by marketers Enterprise + user‐generated content
Virality driven by flash Virality based on content
Michelin Guide: expert reviews Amazon: user reviews
Publishers control channels Publishers build relationships
Top‐down strategy Bottom‐up strategy
Information hierarchy Information on demand
Emphasis on cost – CPM Invest for growth – Measurable ROI

17. Leveraging Interactive Media In Marketing
Brand Building
Lead Generation
Research and Development
Product or Service Launch
Customer Retention
Partner and Channel Communications
Thought Leadership
Internal Communications
Media Relations
Crisis Management

19. What Do I Mean When I Say Interactive
Marketing?

21. Online Communication Channels
21

22. Search Engine Marketing
Paid Search
Contextual Advertising
Search Engine Optimization
Display Advertising
Some facts:
 SEM is the fastest growing form of online marketing
 89% of US Internet Users
 63% of consumers first look to the internet
 82% say search is the most commonly used tool
 41% use geographic modifiers
 82% of local searchers follow‐up with in‐store visits, phone calls or
purchase

23. Search Engine Optimization
 Google Algorithm
 Google Instant
 Google Places
 Increased focus on SEO can begin to
decrease or eliminate the need for PPC

24. Search – Leveling the playing field
SEO
+29%
Higher
Return
PPC

25. Display/Banner Advertising
 CPM (Cost per Thousand Impressions)
 CPC (Cost per Click)
 CPA (Cost per Action/Acquisition)
 CPL (Cost per Lead)
 Rich Media
 Mobile
 Behavioral Targeting

26. Social Networks

27. User Generated Content
 Blogs
 Social Network Sites
 Wikis
 Videos & Photos
 Review Sites
 Audio Sites
 Discussion Boards & Forums

28. Email Marketing
 Fast & Easy
 Interactive
 Personalization
 Tracking
 Eliminated printing costs

29. Mobile
Mobile Websites
SMS/Texting
Smart Phones
Tablets/iPad/Kindles
Location Based Marketing

30. Centralize Analytics – Multichannel Optimization

31. The Changing Role of the Marketer

32. Changing Role of Marketers
It’s not about talking at
customers and prospects

33. Changing Role of Marketers
It’s about creating &
engaging with communities

34. The Social Technographics Ladder Creators
Publish a blog
Publish your own Web pages
Creators
18% Upload video you created
Upload audio/music you created
Write articles or stories and post them
Critics Post ratings/reviews of products/services
Comment on someone else’s blog
Critics
25% Contribute to online forums
Contribute to/edit articles in a wiki
Collectors
Use RSS feeds
12% Collectors Add “tags” to Web pages or photos
“Vote” for Web sites online
Joiners
Maintain profile on a social networking site
Joiners
25% Visit social networking sites
Read blogs
Spectators Watch video from other users
Spectators
48% Listen to podcasts
Read online forums
Read customer ratings/reviews
Inactives
Inactives None of the above
44%
Groups include people participating in at least
one of the activities monthly.

35. Understand All The Objectives
ADVOCACY AWARENESS
By always adding value, Find your target audience
your customers will
become advocates of your Make them aware of your
brand products and services
They will pass the word
and start the cycle over
with others
RETENTION
By always adding ENGAGEMENT
value and more
relevance to each Now they know…but do
individual, they care?
customers will come
to you, not your Entice the target’s desire
competitors to learn more
SEGMENTATION
With new data, bucket ACQUISITION
customers into different groups You’ve engaged your target,
Provide more targeted, relevant they’re willing to exchange
communications data, make a purchase, etc.

36. Listening
Learning from what
your customers are
saying

37. Talking
Two‐way
conversation,
not just shouting

38. Energizing
Helping your
best customers
to recruit others

39. Supporting
Enabling
your customers
to support
each other

40. Embracing
Involving
customers
in your
product
development

41. Tools used to accomplish objectives
Corporate Typical Appropriate
function groundswell objective social applications
Listening — gaining insights • Private communities
Research from listening to customers • Brand monitoring
• Blogs
Talking — using conversations
• Communities
Marketing with customers to promote • Social networking sites
products or services
• Video or user-generated sites
Energizing — identifying • Brand ambassador programs
Sales enthusiastic customers and using • Communities
them to persuade others • Embeddable “widgets”
Supporting — making it
• Support forums
Support possible for customers to help • Wikis
each other
Embracing — turning customers • Innovation communities
Development into a resource for innovation • “Suggestion boxes”

62. Getting The Strategy Right

70. Manage Expectations
 Make sure that your organization understands there are no
overnight successes
 To become a viral brand requires a great idea, make sure that you
have enough ideas to reject so that you get the great one
 Attempts to find superficial social success leads brands to create a
presence that doesn’t fit brand personality or inappropriate
campaigns in the hope that they go viral
 Don’t be greedy
 Just because you have thousands of followers or friends, doesn’t
mean that they all have something valuable to say
 Measure. Review. Revise.
 Getting social media right requires regular review to gauge what
works and what doesn’t
 Once you know what works, revise your social media strategy to
achieve results long‐term

72. Why Do Brands Fail In Social Media?
 Individuals within the organization work independently
of others as what we call silos
 Organizations fail to do any research or planning to
understand what social media is and how it operates
 Too many organizations believe that social media is
about just listening to what others say, rather than being
part of the discussion
 They fail to devise a message for the media making their
social media experience seem like an one‐off experiment
 They don’t take the time to build the strategy to succeed
assuring that they will fail