don e. schultz - marketing on the edge

Marketing on the Edge: New Frameworks for a New Era

Marketing on the Edge: New Frameworks for a New Era

Don E. Schultz

Agora, Inc. and Northwestern University

4 December, 2006

iMEDIA Agency Summit

Scottsdale

The Challenge?

The Battle of the Future Will be “Behind the Lines”

The Challenge?

The Battle of the Future Will be “Behind the Lines”

Three Critical ElementsThree Critical Elements

ContentContentContentContent DeliveryDeliveryDeliveryDelivery

AudienceAudienceAudienceAudience

Why Marketing Communication Is So Much More Difficult for Agencies

Than It Once Was…..

Why Marketing Communication Is So Much More Difficult for Agencies

Than It Once Was…..

Traditional Marketer Controlled System

Traditional Marketer Controlled System

MarketerCustomer/

Prospect

Agency → Media Organization → Sales Force

Based on an Outbound Message

Distribution System

Based on an Outbound Message

Distribution System

• All marketer distributed - all marketer controlled

• Based on behaviorist psychology

– Stimulus � Response

– Attitudinal change � Behavioral change

• Mostly interruptive – when marketers want to talk

• All activities separate, distinct and unconnected

In Short,

Marketers Talk, Customers Listen

ConvictionPreferenceKnowledgeAttitudes/Awareness

Purchase

Behavior

Media

Adver-

tising

OneOne--WayWay

LinearLinear

““Influencing and Persuading ConsumersInfluencing and Persuading Consumers””

Source: Adapted from Lavidge and Steiner

The Model Looked Like This:

“Hierarchy of Effects”

The Model Looked Like This:

“Hierarchy of Effects”

Everyone Doing the Same Things With the Same Tools

Everyone Doing the Same Things With the Same Tools

MarketerCustomer/Prospects

Agency→ Media Organization→ Sales Force

Competitors

Competitors

Competitors

Competitors

And, Agencies Had a Big Role

And, Agencies Had a Big Role

Content Was KingContent Was King

Delivery Delivery Delivery Delivery AudienceAudienceAudienceAudience

ContentContentContentContent

But, Technology Changed the

Marketing Communication World!

But, Technology Changed the

Marketing Communication World!

Customers Acquired Information Technology

Customers Acquired Information Technology

CustomerCustomer

Internet – WiFi

Mobile Telephony

iPods/MP3 -- podcasts

Search Engines

Cable/satellite

Blocking systems - TIVO/DVRs/ Filters/Pop-up Blockers/etc.

That Enabled Customers to Avoid Marketer Messages

That Enabled Customers to Avoid Marketer Messages

MarketerCustomer/Prospects

Agency→ Media Organization→ Sales Force

Competitors

Competitors

Competitors

Competitors

And, It Resulted in an Entirely

New Marketing Communication System That

Customers Control

And, It Resulted in an Entirely

New Marketing Communication System That

Customers Control

Customer Controlled Communication Systems

Customer Controlled Communication Systems

MarketerCustomer/Prospect

Agency → Media Organization → Sales Force

Competitors

Competitors

Competitors

Competitors

Word of Mouth New Media

Web SearchE

mp

loye

es

/Re

co

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de

rs/D

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tors

/In

flu

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Now, The Battle Is “Behind the

Lines”

Now, The Battle Is “Behind the

Lines”

How Customers Aggregate Media How Customers Aggregate Media

Newspapers

Web sites

Blogs

Magazines

Direct Mail

RSS

PR

WOM

InternetSearch

Cable

In-Store

TV

Event

Podcasts

CustomerCustomer

It No Longer Matters How Good You Are With Traditional

Agency Capabilities

It No Longer Matters How Good You Are With Traditional

Agency Capabilities

MarketerCustomer/Prospect

Agency → Media Advertising

What to Do?What to Do?

Rule #1

It’s Not How Many Messages You Distribute,

It’s How Many Messages Customers Receive

Rule #1

It’s Not How Many Messages You Distribute,

It’s How Many Messages Customers Receive

Response

Media

Exposure

Media

Exposure

Media

Exposure

Media

Consumer

Potential Synergy

Via Simultaneous Media Usage

(Messages Reinforced)

Potential Fragmentation

Of Attention

(Message Impact Diluted)

Foreground/Background Media

Time Allocated To Each Media Form

Media Consumption ModelMedia Consumption Model

C

R

O

O

O

O

C

C

R

R

R

R

CC

O

R

CR O

C

O

O

marketers

marketers

marketers

And, What Internal Networks They Create for Themselves

And, What Internal Networks They Create for Themselves

Rule #2

It’s Not What Delivery Forms You Use, It’s How They Work

in Combination

SYNERGY!

Rule #2

It’s Not What Delivery Forms You Use, It’s How They Work

in Combination

SYNERGY!

Today, Specialization Is Evil Today, Specialization Is Evil

Marketing Communications

Marketing Marketing Communications Communications

Sales

Promotion

Sales

PromotionPR/Events/

Sponsorships

PR/Events/

SponsorshipsDirect

Mail

Direct

MailInternet and

Electronic

Internet and

Electronic Media

Advertising

Media

Advertising

ConsumersConsumers

AttitudesAttitudes BehaviorsBehaviors

????

Customer’s

View Of

Marketing

Communication

Customer’s

View Of

Marketing

Communication

Internet and Electronic

Sales Force

Press and

Media

Customer Service Product Design

Pricing

Distribution

Advertising

Agencies Must Focus on Customer Experiences

Agencies Must Focus on Customer Experiences

Brand Experiences Occur “Behind the Agency Lines”

Brand Experiences Occur “Behind the Agency Lines”

Marketer Agencies Messages Consumer

BrandExperiences

Internet Systems

Electronic SystemsBrand

Experiences

• Web sites

• Customer Service

• Tech support

• Retailers

• Distributors

• User communities

• Blogs

• RSS

• Influencers

• Recommenders

Audiences Become King Audiences Become King

ContentContentContentContent Delivery Delivery Delivery Delivery

AudienceAudienceAudienceAudience

And, Delivery Becomes the Crown Prince

And, Delivery Becomes the Crown Prince

ContentContentContentContent AudienceAudienceAudienceAudience

DeliveryDeliveryDeliveryDelivery

Today, Agencies Are Facing the

Wrong Way!

Today, Agencies Are Facing the

Wrong Way!

Agencies Are Still Stuck in an Outbound, Push System

Agencies Are Still Stuck in an Outbound, Push System

MarketerCustomer/Prospect

Agency → Media Organization → Sales Force

Competitors

Competitors

Competitors

Competitors

Word of Mouth New Media

Web SearchE

mp

loye

es

/Re

co

mm

en

de

rs/D

istr

ibu

tors

/In

flu

en

ce

rs

The Action Is All “Behind the Lines”

The Action Is All “Behind the Lines”

Marketing Communication “Behind the Lines”, Means Doing Things

Differently, Not Just Doing the Same Things Better!

Marketing Communication “Behind the Lines”, Means Doing Things

Differently, Not Just Doing the Same Things Better!

Key Elements Key Elements

• Understanding audiences, not just creating content

• Identifying message consumption, not just message distribution

• Understanding “synergy” among message elements

• Generating “outcomes”, not just developing “outputs”

• System, not element-centric

Can Agencies Get There From Here?

Can Agencies Get There From Here?

I Assume That Is Why You Have Gathered in the

Desert

I Assume That Is Why You Have Gathered in the

Desert

In Addition to Golf and Swimming

In Addition to Golf and Swimming

Thank You for Your Time, Your Attention and

For Not Throwing Things

Thank You for Your Time, Your Attention and

For Not Throwing Things

Don E. Schultz Ph.D.dschultz@northwestern.edu