don e. schultz - marketing on the edge
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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
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The Challenge?
The Battle of the Future Will be “Behind the Lines”
The Challenge?
The Battle of the Future Will be “Behind the Lines”
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Three Critical ElementsThree Critical Elements
ContentContentContentContent DeliveryDeliveryDeliveryDelivery
AudienceAudienceAudienceAudience
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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…..
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Traditional Marketer Controlled System
Traditional Marketer Controlled System
MarketerCustomer/
Prospect
Agency → Media Organization → Sales Force
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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
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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”
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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
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And, Agencies Had a Big Role
And, Agencies Had a Big Role
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Content Was KingContent Was King
Delivery Delivery Delivery Delivery AudienceAudienceAudienceAudience
ContentContentContentContent
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But, Technology Changed the
Marketing Communication World!
But, Technology Changed the
Marketing Communication World!
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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.
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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
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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
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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
mm
en
de
rs/D
istr
ibu
tors
/In
flu
en
ce
rs
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Now, The Battle Is “Behind the
Lines”
Now, The Battle Is “Behind the
Lines”
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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
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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
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What to Do?What to Do?
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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
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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
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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
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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!
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Today, Specialization Is Evil Today, Specialization Is Evil
Marketing Communications
Marketing Marketing Communications Communications
Sales
Promotion
Sales
PromotionPR/Events/
Sponsorships
PR/Events/
SponsorshipsDirect
Direct
MailInternet and
Electronic
Internet and
Electronic Media
Advertising
Media
Advertising
ConsumersConsumers
AttitudesAttitudes BehaviorsBehaviors
????
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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
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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
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Audiences Become King Audiences Become King
ContentContentContentContent Delivery Delivery Delivery Delivery
AudienceAudienceAudienceAudience
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And, Delivery Becomes the Crown Prince
And, Delivery Becomes the Crown Prince
ContentContentContentContent AudienceAudienceAudienceAudience
DeliveryDeliveryDeliveryDelivery
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Today, Agencies Are Facing the
Wrong Way!
Today, Agencies Are Facing the
Wrong Way!
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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
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The Action Is All “Behind the Lines”
The Action Is All “Behind the Lines”
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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!
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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
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Can Agencies Get There From Here?
Can Agencies Get There From Here?
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I Assume That Is Why You Have Gathered in the
Desert
I Assume That Is Why You Have Gathered in the
Desert
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In Addition to Golf and Swimming
In Addition to Golf and Swimming
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Thank You for Your Time, Your Attention and
For Not Throwing Things
Thank You for Your Time, Your Attention and
For Not Throwing Things
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Don E. Schultz [email protected]