Archive for the ‘Marketing’ Category

Product Management vs Product Marketing Activities

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February 22, 2014 · by Ray · Business Solutions, Marketing, Sales Model

Titles really are a mess. What one company calls a product manager, another calls a product marketing manager. It is best to be aware of this and to focus on the activities required. Also where these people do not exist in an organisation other departments fill the void. So the activities may be performed (poorly) by technical, sales, operations or marketing communications.

Typically the title “product manager” is used to signify people who listen to the market and articulate the market problems in the form of requirements. And the title “product marketing manager” is usually assigned to those who take the resulting product to the market by defining a product marketing strategy.

In Crossing the Chasm, Geoff Moore defines (and recommends) two separate positions:

A Product Manager (PM) listens to the market

PM“A product manager is a member of either the marketing organization or the development organization who is responsible for ensuring that a product gets created, tested, and shipped on schedule and meets specifications. It is a highly internally focused job, bridging the marketing and development organizations, and requiring a high degree of technical competence and project management experience.”

 

A Product Marketing Manager (PMM) talks to the market

PMM“A product marketing manager is always a member of the marketing organization, never of the development group, and is responsible for bringing the product to the marketplace and to the distribution organization… it is a highly externally focused job.”

 

In reality, there is a blurring of activities and the captions used (talking and listening) are used for simplicity, clarity and guidance rather than laws. The activities performed by the roles are as follows:

Product Management Activities

  • Define Market Opportunity,
  • Define User Personas for individual products.
  • Create Product Requirements & Use Scenarios,
  • Analyse Competitive Landscape,
  • Define Product Differentiation & Position Product,
  • Create Business Case, Acquire Funding,
  • Create Product Roadmap, Develop Product,
  • Launch Product, Manage Product Lifecycle.

Product Marketing Management Activities

  • Articulate Product Objectives,
  • Articulate Product detail ( differentiation, positioning, applications, pricing and USP), Understand Market (needs, problems,& segmentation, priority, size, customer profiles and purchase processes),
  • Understand Competition,
  • Build Go to Market plan ( value proposition, sales process, select/create sales channels and objectives, message map, demand generation strategy, promotion strategy, sales guide, sales support & collateral, sales training, pipeline management, metrics, systems, budget, schedule),
  • Execute Plan ( launch event, launch team).
  • Conduct Win/Loss analysis.

 Director, Product Strategy Activities

In organisations where a Director, Product Strategy exists then they may take on more of  the strategic and less tactical activities.

  • Discover and validate market problems (both existing and future customers)
  • Seek new market opportunities by leveraging the company’s distinctive competence
  • Define and size market segments
  • Conduct win/loss analysis
  • Determine the optimum distribution strategy
  • Provide oversight of strategy, technical, and marketing aspects of all products in the portfolio
  • Analyze product profitability and sales success
  • Create and maintain the business plan including pricing
  • Determine buy/build/partner decisions
  • Position the product for all markets and all buyer types
  • Document the typical buying process
  • Approve final marketing and go-to-market plans

Sales Problems may point to poor Product Management & Product Marketing

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February 21, 2014 · by Ray · Business Solutions, High Performance Sales Team, Marketing

Sales problems are very visible.

 

Targets are not met. Customers are not acquired. Pipelines are not healthy. Forecasts are not met.

Often the immediate reaction is to blame the sales personnel. Typical questions are: Are they working hard enough. Are they working smart enough? Do they  have the right relationships. Are they looking in the wrong places. Do they understand customer problems?  Do they understand the product value? Can they present the value of the product effectively?

Diagnose, Create & Deliver

Diagnose, Create, Deliver

While sales personnel can always up their game, in many cases the root problems can be elsewhere. If Product Management and Product Marketing processes been ignored, or not done correctly then the following problems may be diagnosed

 

Diagnosis

  • Do product differentiators exist and are they understood?
  • Is product positioning clear and understood?
  • Have the correct target market segments been identified?
  • Is the product fully developed and bug free?
  • Does the product provide the whole solution for the customer or are partner products required?
  • Is the product perceived as too expensive?
  • Is the value of the product understood and presented well enough?
  • Are the value messages available for all of the key players in the customer organisation?
  • Do suitable message vehicles exist? Do sales tools exist?
  • Are there reference customers available that are acceptable to target customers?

Create & Deliver Solution

A solution must then be created and delivered. Depending on the organisation this may be done by Product Management and Product Marketing.

Product management is inward focussed and product marketing is outward focussed.

  • Utilise Differentiators – Articulate product differentiators, and combine with customer profiling and competitive analysis to position products correctly and to drive messaging.
  • Prioritise Target Customers – Utilise market analysis and product positioning to prioritise demand generation and sales activities
  • Finalise Development – Create project plan and obtain high level management sponsorship  to finalise development.
  • Create Whole Solution – The construction of the solution may be done directly or via a third party such as an integrator. In Early markets the customer will normally provide this function either directly or via a third party.
  • Execute Pricing Review – Ensure that value is demonstrated clearly by better presentation or if required a pricing reduction or re-organization.
  • Create Better Value Presentation – Include all the value elements and simplify presentation in line with the customer financial modelling. Include as a standard sales tool.
  • Acquire Reference Customers – Provide sufficient support to sales personnel to target and acquire reference customers.

Project management methodologies and tools can be used  as appropriate to deliver solutions efficiently and effectively.

Customer Service: The John Lewis Way

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john_lewis_oxford_street1

I recently had the pleasure of working inside John Lewis and experiencing first hand how they deliver customer service that’s admired. I enjoyed working with the company. The customers and staff (partners) are in general happy, very polite and helpful and the company has a great atmosphere which is a credit to them. This has not happened overnight. The trust that customers have in John Lewis takes a long time to build but much easier to lose. How have they created this? First are the founding principles of Customer Service in John Lewis –

“Be honest; give respect; recognise others; show enterprise; work together; achieve more.”

Then my impressions…

1. “We’re Based on the Notion that if we Treat our Partners well, it will lead to Good Customer Service.”

This is a simple idea but one few companies really put into practice. John Lewis implement it in a number of ways:

  • Partnership
    • Staff are called and treated as partners
    • All partners are owners in the business and get a yearly bonus based on performance
    • Managers served staff at Xmas lunch
    • Partnership concept breaks down barriers and creates meritocracy
  • Respect
    • Respect for each other and for customers is a core value within John Lewis
    • Managers and staff were generally very helpful to one another and to customers
    • No difference between how customers and partners were treated…indeed partners were often customers
  • Trust
    • Trust partners and empower them to do well
    • In general partners were given space to to their jobs and to succeed and
  • Soft Benefits to create family effect
    • Subsidised canteen, discount card, subsidised, sports , subsidised concerts, holiday homes etc…
    • Social club with great parties etc.

2. Empower Staff

  • Train staff well
  • Empower them to make do the right thing. This may be asking a manager or acting on the customer’s best interests depending on the situation. They are encouraged to think outside the box once the basics have been understood and acted upon. Staff are expected to show enterprise in the right context
  • Staff are product experts in their areas and have built up this expertise over time and through training.
  • Be honest – if you don’t know do not waste the customer’s time. Find somebody with the right answer. Bring the customer to the answer if required.

 

3. Get and Act on Customer Feedback

  • Headquarter staff spend a few days serving over peak periods. This helps to give better customer service overall but also gives them immediate insight into the problem areas that customers are facing.
  • Staff are expected to communicate issues regularly and many forums are created whereby this is done in a  formal way

4. Make Online and Store seamless

  • Returns for online can be done in store at any till with systems work behind the scenes to improve this process ongoing. This can be much better than having to repackage it and post it back to other online retailers.,
  • Maintain exceptional customer service online. Customers have access to people when they need it and can use Waitrose and John  Lewis stores to pick up their purchase rather than missing the delivery at home.
  • Online is becoming a huge part of the overall service offered by John Lewis allowing customers to purchase when stores are closed. The John Lewis Clearance sales started on Xmas eve.

5. Make Customers Life Easy

  • Shopping can be stressful and unpleasant in the wrong environment. John Lewis try to help make it a pleasant environment.
  • Create a calm environment that is pleasant to look at and products are easy to find. Do not overburden with selling messages in flash colours
  • Keep queues to a minimum by hiring temporary staff for peak times to help at till as and free up existing staff to answer questions and give advice. Also deploy HQ staff to help out.
  • Provide a customer collection point that will collect all customer purchases in one location to ensure that they are not overburdened with bags
  • Provide home delivery options from store
  • Provide delivery options to John Lewis or Waitrose stores
  • Provide extensive gift list and gift wrapping services
  • Staff are honest and if they cannot answer will say so but will find someone who can and will not leave the customer until they are assured that the customer is being served by someone able inside John Lewis.

6. Be Different

  • Never knowingly undersold
    • John Lewis will match competitor prices if evidence is presented that is relevant and reasonable.
    • Staff are empowered to do this on the fly with manager’s approval.
    • Systems will support on the fly one off discounting.
  • Have an exceptional returns policy
    • John Lewis customers are trusted implicitly and when they bring back a product that they are not happy with it is changed often without question. This could be abused but at a macro level this creates tremendous good will and indeed more purchases. Often customers need to see the product in the home environment before being really sure and if they could postpone or not purchase if the returns policy was too difficult.
  • Have an exceptional warranty on electricals
    • John Lewis provides market leading warranties on electrical items whilst maintaining competitive prices.. This has become more important a sthe options on the high street narrow.

7. Hire people who share the John Lewis vision

  • Hire people who will take on the values of John Lewis and take it forward. The gatekeepers that hire staff  into John Lewis have an important job to hire people that will not abuise the trust and respect gievn to them by partners and customers.

 

The Art of Persuasion

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November 4, 2011 · by Ray · Marketing, Win New Major Accounts

Communication is a fundamental part of business and personal life. We now have many different ways of communicating from face to face to phones, social media, print media and  broadcast media.

With all of these communication channels we are trying to inform, persuade, motivate, coach and manage relationships.

I would like to review a very important element of commuication: the art of persuasion. And I will limit my focus to B2B communication (mainly).

Win:Win Framework

Communication is always within a context or framework which may be implicit or explicit.

For some the word persuasion has ominous undertones and a worry about being manipulated.

I am assuming, in this discussion, that persuasion is used within a framework that assumes a (win: win) or positive outcome  for both parties.

I assume that what I am persuading the customer to do will add value to the customer’s business and result in a (win: win) transaction.

Basic Persuasion Model

A basic persuasion model was constructed by Aristotle and consists of three elements:-

  • Credibility – relates to the character and reputation of the persuader.
  • Emotion or  Empathy – the persuader must have the the ability to identify and understand the other person’s feelings, ideas and situation.
  • Logic – relates directly to the logic of the argument.
This model may simple be but it may be applied to all communication channels. E.g. Advertising, Presentations & Meetings and one to one conversations.
The mixture of the three elements must be right for effective communication.

Appealing to Credibility

In appealing to credibility,  both the individual and the company he represents must be credible in the eyes of the audience. He must emit true sincerity.

Genuine sincerity means that you actually care about someone’s problems or concerns. It creates a certain amount of trust. And trust is the foundation of relationships.

The company builds its credibility on its successes and on its third party references. (In the B2B mainstream market (Early & Late Majority) positive references are key to credibility.)

The individual builds  his individual credibility with integrity, historical success (supported by  knowledge), skills and experience (as required by the audience). Initially the company brand will lend credibility to the individual but the individual must build and maintain his own over time.

In launching new products the phrase “Credibility before Visibility” is very apt. A lot of marketing and sales expense may be wasted in persuading the market to buy products that are not yet credible in the eyes of the target audience.

Appealing to Emotion

This using your heart as well as your head. It’s the ability to read emotions in others. It’s being able to experience from another person’s perspective. It is empathy.

It appeals to the emotions,  imagination and self interest in the audience. In some cases to feel what the presenter feels.

The message evoking an emotional response  may be delivered by words, messages but also by non verbal communication. The words may well be in the form of a story, a vision that transports the audience to understand the presenter’s point of view or to join him in envisioning the a particular part of the world as improved or as a better place. Music, colours,  films, graphics etc. may be used to emphasize and communicate the required message.

Non verbal communication can give wither a positive or negative response. Such communication is delivered via facial expression, eye contact, gestures, posture and body orientation, humour, proximity, paralinguistics (tone, pitch, rhythm, timbre, loudness and inflection of voice), dress sense, attitude & confidence.

Emotion also includes building a relationship and a rapport that can reduce barriers to communication and engender trust which is a foundation of all human intercourse.

Appealing to Logic

This means persuading by the use of reasoning. You present the proofs, or the supporting logic, for your point.
Three, or four at the most, key proofs are all that are required as an audience will not remember more.

Persuasion Techniques

Whilst techniques can be used to persuade they are most effective when supported by the persuasion model above. These techniques include structure, body language, speech, maintaining attention and the darker arts of weapons of influence.

Structure

  • Introduction – Frame the topic. Prepare audience to be receptive.
  • Narrative – a story in a form that is relevant to the audience that tells what you want them to do.
  • Argument – proofs and supporting logic.
  • Refutation – anticipate objections to the argument.
  • Conclusion – appeal to the audience for understanding, its action and its approval.

Body Language

Body language may be used instead of speech, to reinforce speech or when it displays (or betrays) a persons mood.
First impressions are important with impact made in the first few minutes.
We cannot not communicate. But regardless of what a particular expression or gesture means to you its ho the receiver perceives it that is important. Make sure your language is the right language.
  • Facial expressions
  • Gestures
  • Open or Closed Body Signals
  • Spatial relationships  – how close we are to our audience.

Speech

Non verbal aspects of speech are termed paralinguistics. They relate to the tone of the voice ad related cues such as:
  • Volume
  • Rate of Speaking
  • Tone, pitch and inflection.

Maintain Attention

If the audience is not paying attention you are not communicating, there is no communication and no persuasion can occur. Attention is best if it rises over time.

Most people have short attention spans.

Make the message memorable and understood.

  • Say what you’re going to say. Say it.Say what you said.
  • Keep it short 15 mins is optimal.
  • Avoid distractions, interruptions and breaks
  • Avoid large disagreements to what you say by ensuring that key members of the audience have been persuaded before the presentation.

Weapons of Influence

We have automatic behavior patterns that we use to simplify the modern world and enable action and void being frozen by too much analysis. These behaviour patterns make us vulnerable to persuasion by those who know how they work. These weapons of persuasion are part of thee dark arts of persuasion in that they do not always result in a win:win situation if used unscrupulously. In B2B selling , professional buying processes are designed to minimize or remove the impact of these weapons but they are used often in B2C selling.

We live in an extraordinarily complex and stimulated environment, easily the most rapidly moving and complex that has ever existed. To deal with it we need shortcuts. We can’t be expected to recognize and analyze all the aspects in each person, event and situation we encounter in even one day. We haven’t the time, energy or capacity for it. Instead, we must often use our stereotypes, our rules of thumb to classify things according to a few key features and then to respond mindlessly when one or another of these trigger features is present. Sometimes the behaviour will not be appropriate for the situation. But we expect the imperfection since the alternative is that we would be left frozen,  analyzing and miss the time for action.

According to Alfred North Whitehead “civilization advances by extending the number of operations we can perform without thinking about them”. These are the key weapons.

  • Reciprocity – “One good turn deserves another…”
    • People are more likely to give to you if you have already given to them
  • Commitment & Consistency – “Stay on course!”
    • We have a nearly obsessive desire to be consistent with what we have already done.
    • If I can get you to make a commitment (that is to take a stand, go on record), I will have set the stage for your automatic and ill-considered with that commitment. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand.
    • People are more likely to behave the way you want them to behave if they believe that this behaviour is consistent with an existing commitment
  • Social proof – “Monkey see, monkey do”
    • People are more likely to follow a particular course of action if they see other people doing the same thing
  • Authority –
    • People are more willing to follow instructions if the perceive the instructor to have authority or expertise
  • Likeability – “Jobs for the boys”
    • People give preferential treatment to those that they know and like
  • Scarcity
    • Rare items and opportunities are much more attractive than commonplace equivalents.

 

Web 2.0

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July 5, 2011 · by Ray · Cloud Computing, Digital Marketing, Web 2.0

Web 2.0 Framework

Web 2.0 is a convergence of social and business practices rather than a technology transition. In fact many of the technologies that make up Web 2.0 were available during the early 90s.
The elements that make up Web 2.0 are as follows:

  • User-generated content
  • Rich Internet applications (RIA)
  • Social Networking
  • Cloud Computing
  • Web-centric development and architecture models
  • Data
  • Mashups
  • Scale free and long tail
  • Mobility

In a little more detail:

  • User-generated content: Wikis, Blogs, Communities, Photos eg Flickr, Videos eg YouTube Collaboration and Collaborative Technologies
  • Rich Internet Applications: Practices, Technologies and Frameworks.
    • Techologies include: HTML, HTTP, CSS, Javascript, AIR, Silverlight, XHTML, Ajax, JSON,
    • Frameworks: JQuery, RubyonRails (RoR), Dojo, Yahoo Widgets, Google Gadgets.
  • Social Networks: Facebook, Myspace, Twitter, LinkedIn, Friendster, Ning, Jive, Socialtext, Awareness, Google, Microsoft, IBM, Social Networking standards and interfaces.
  • Cloud Computing: Compute and storage infrastructures are available to use as utility rather than within one’s own infrastructure. Can include computer hardware, platform service and  complete applications (eg Salesforce.com) as an external service.
  • Web-centric development and architecture models: |Web 2.0 provides a different way of building applications.. Applications are hosted with a fast feature velocity (ie features added much quicker timeframe  – days rather than months), use development methods such as agile and scrum, have massive scalability, use frameworks such as Mapreduce, Hadoop and BigTable and use interfaces such as JSON and REST.
  • Data: Content Aggregation, Syndication and Federation via RSS and Atom. Analytics. Trending towards Semantic Web and Web 3.0.
  • Mashups:Web apps are increasingly becoming mashups where content is combined, annotated and aggregated from different sources.
  • Scale Free and Long Tail: The Applications are scale-free. Websites must cope with peaks in usage and must not crash under the occasional heavy load. The long tail is the concept that. although there are some products (eg new books, music, movies)that are popular and sell a large number of single products, there are also smaller markets that prefer many related products that are rare or less well known.
  • Mobility: Mobile phones , Tablets and mobile phone networks have become pervasive and all powerful.

 

Lead Generation Terminology

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May 25, 2011 · by Ray · Lead Generation

Target Market

The Target Market or Target Market segment is a list of companies  (B2B) or consumers (B2C) that possess the required buyer profile that make them pre-disposed to buy the product.

Territory

A territory is  a part of the target market which has been allocated to a  sales person or sales team.

A Lead

A lead is a  potential opportunity sometimes known as a prospect – For example, a person met at a conference who expressed interest, or someone who filled out a form on the company website.

Lead Conversion (Or Qualification)

If the lead is qualified and the salesperson and decides to pursue it, the lead is “converted,” and becomes an opportunity. ( Note that the term conversion is used somewhat loosely and in many cases in Digital Marketing does not end up with an opportunity but with a (more qualified) lead that still requires further qualification before it becomes an opportunity.

An Opportunity

Opportunities are the sales and pending deals that are tracked in that Sales Pipeline or Funnel. The pipeline is built by adding more opportunities will contribute to the forecast.

Opportunity Qualification

Opportunity Qualification means that the prospect has provided information and performed certain actions that show that they are  at a minimum in the market for the product, have the budget to buy and are willing to do  so within a reasonable timeframe.

Qualification is tailored to the specific sales process which is itself  aligned to the specific buying process in place.

In a simple B2C eCommerce transaction the qualification is a very simple process.

In B2B solution selling the qualification is a process that may be spread over weeks or months that forms a large part of the sales process due to the relative complexity of the buying process.

For instance in B2B solution selling:

  • A Lead may be qualified initially by an internal telemarketing team who may deem it good enough to pass on to the field sales team.
  • The Field sales team would initially qualify the company known as a suspect to avoid confusion with the term prospect. At this stage it would enter the funnel as a qualified suspect.
  • Further levels of Qualification would then take place with the other members of the buying team such as the Sponsor (Person Driving the Project) and the Power Sponsor (Normally at Executive or C Level).

An Account

An account is the company or consumer that makes the purchase. An account may deal with several opportunities.

Digital Marketing Strategy

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May 25, 2011 · by Ray · Digital Marketing, Lead Generation

Build Foundation for Success

The key to success is to create:

  • Clear Value objectives (or Clear Return on Investment objectives or Business Case)
  • Clear measurement (“You can’t manage what you don’t measure”)

Value = Total Benefits – Total Investment.

Deliver Value

The Value delivered by a Digital Marketing Strategy is:

  • Customer Sales
    • Part or all of the sales process depending on sale complexity.
    • For Complex B2B Digital Marketing can:
      • Create Awareness & Stimulate interest,
      • Generate Leads
  • Audience Engagement
  • Customer/Market Insight
    • Is the market aware, Ready to buy? Are my customers satisfied?
    • Used for Product Development or to Gauge the Appropriate Sales & Marketing Strategy.

This post will focus only on Customer Sales & Audience Engagement.

Deliver Customer Sales

Digital Marketing integrated  into the Sales Process

Digital (Online) Marketing integrated into the Sales Process

Digital Marketing allows niche markets  to be targeted at a comparatively reduced cost.

Create Awareness

Use

  • Display Advertising
    • on websites that are relevant to the product being sold.
  • Social Media & Blogs
    • to engage with target market, to help educate and to announce new products.
  • Email Marketing
    • to distribute newsletters, whitepapers to stimulate interest.
  • Website
    • to educate.

Use in combination with Offline Marketing in the right blend to enhance success.

Generate Leads

Use

  • Search  (a mixture of organic and paid),
  • Display Advertising (on websites that are relevant to the product being sold) &
  • Email Marketing.
  • Social media (networking and leads from engaged audience)
  • Website (Capture inbound inquiries)

Use in combination with Offline Marketing in the right blend to enhance success.

Search has historically been the strongest digital channel  for lead generation. It has been found that the yield is improved when combined with other channels such as Display Advertising.

Demonstrate Value using a Marketing Funnel

Use Marketing Funnel Above Sales Funnel to demonstrate Value

Whether you are B 2 B, B 2 C or non profit your marketing activities can be best viewed using  the sales funnel.

Marketing at its heart is geared towards lead generation,  but  can also help in development and closure. The Value of any Marketing Campaign must be measured in the number of leads generated and opportunities created.

A Marketing  Funnel  may therefore be added above the Sales funnel.  The exact breakdown of the Marketing and Sales Funnels will vary depending on the nature of the customer buying process. In general for B2B,  the Marketing Funnel moves the target market members to Awareness, To Lead and To Converted Lead which then becomes an Opportunity for development by Sales.  In Small Sales Teams, with no specialized Marketing help, this may well be all done by the sales team.

Demonstrate Value using an ROI Model

The actions to create a model are as follows:

  • Map out a number of channels whereby a target company engages and becomes a lead, for example:
    • Search Engine –>Main Site –>Download Whitepaper –>Registration
    • Search Engine –>Blog–>Main Site–>Enquiry Form
    • Twitter–>Blog–>Enquiry Form
    • Facebook Fan page–>Main Site–>Enquiry Form
    • Display Advertising Banner–>Product Microsite–>Main Site –>Enquiry Form
  • Create KPIs and predicted relationships between KPIs and Leads generated, for example:
    • Main Site Visitors
    • Actions Performed (eg Download Whitepapers)
    • Facebook Fans
    • Twitter Followers
  • Create Model
    • Predict Customer sales
    • Estimate Break down by Lead Generated and Path
    • Estimate Costs
  • Do Pilot Campaigns
    • Compare Different blends and strategies
  • Implement most successful on full market.

Initially, Social Media will be all about building awareness but if an engaged audience can be created then inevitably it will generate leads.

Social Media sites like Linked In are used by Sales Teams as part of their networking strategies.

Measurement and evaluation are very important.  Every business is different and requires some testing  to achieve the optimum blend of digital marketing channels.

Deliver Audience Engagement

The collateral benefit of Digital Marketing strategy is the creation and growth of engaged audiences (customers and prospects).  A more engaged audience delivers the following benefits

  • More Likely to purchase – A Mature engaged Social Media Audience can be a Lead Generation source.
  • Better Retention – more likely to stay
  • Brand Advocate leading to referrals and good references

 

 

Digital Marketing is Now Mainstream

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May 20, 2011 · by Ray · Digital Marketing

Value Delivered is Nothing New.

The value delivered by Digital (or Online) Marketing is nothing new. It delivers,  or helps to deliver:

  • Insight into customer requirements
  • Customer Sales
  • Customer Service

Digital Marketing  uses the internet which has taken market share from Newspapers and other traditional media and provides new ways of gaining customer insight and delivering customer service.

But, Digital Marketing Is Now Mainstream

But, Digital Marketing is now Mainstream and must be a key part of any sales and marketing strategy.

In the US it is a substantial $26Bn business (2010  comScore):-

  • 15% year on year growth from 2009 (and 11% growth from 2008 – 2009 declined)
  • 16% of the total advertising spend  in the USA  in 2011  (comScore and IAB/Pwc)
  • 25% of predicted total advertising spend by 2015 (IAB/Pwc).
  • No.2 in spend to TV. Newspapers number 3.

Globally, it is an estimated $55Bn business (using Google splits of US/International as guide)

The UK it is £4.1 Bn and is about 25% of the total Advertising spend( Enders Analysis).

  • 13% year on year growth
  • 25% of total advertising spend

Search still dominates . Search is dominated by Google at approx 70% market share with Microsoft Bing at approx 24% (comScore) now that it has done deals with Facebook and Yahoo.

Display has shown good growth, driven by Social Media and led by Facebook. Facebook had approx 40% of all impressions in 2010 and passed the trillion mark with Yahoo next at half that amoun

Driven by the pull of Online Content

The growth in online content is pulling a greater audience online and keeping them there longer:-

  • Stores (From Cars to Music)
  • Entertainment (YouTube, BBC iPlayer etc)
  • News (Mainstream to Blogs, Video to Text)
  • Search
  • Social Networks

The growth in richness of the online content is enabled by the growth in bandwidth to the home (in UK average is 6Mb and growing )and the penetration of internet globally.

And Online Advertising Cost Effectiveness

And the growth in the sophistication and cost effectiveness of online advertising:-

  • Better targeting ( Using profiles on social networks and relevance by search or by product)
  • Performance based pricing (Pay on Click through – accounts for 65% of all search advertising)

Use Value to drive Marketing Investment

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May 16, 2011 · by Ray · Marketing
Value

Use Value to drive Marketing investment

Value = Total Benefits-Total Investment.

The description of Value delivered by the marketing department will be much more powerful if  linked to Value delivered to CEO  and company objectives.

For instance the CEO may have a company objective

” increasing the Average Revenue Per User (ARPU) from £22 per month to £26 per month”

So a Value chain may be created that shows the Value that each department adds to the creation of this overall Value.

1. The Technical & Buying Departments must deliver a new data product for a specific investment

2. The Sales Department must generate a specific number of new sales by converting a certain percentage of qualified leads.

3. The Marketing Department must generate a specific number of qualified leads.

If you are selling equipment for a data product or a means of generating qualified leads then a conversation with the CEO based on the Value delivered in achieving his objectives will be better received and understood.

Equally, the marketing department will secure its budget easier if qualified in terms of delivering Value towards the company objectives.