Consumers, Producers, and Marketing Change

There is a change happening before our eyes that will impact the way marketers view their role. It will change the way marketers define and measure return on marketing investment. This fundamental change in society is the evaporation of the distinction between consumers and producers.

For decades our society has been based on the proposition that a limited set of producers distribute and make available products to a large set of consumers. We might target a segment of the broader consumer market, but typically we operate in an environment where a scarce number of producers create and sell solutions for a larger group of buyers.

So what happens when technology allows inidivduals to become producers? Ten years ago a business needed to go to a web firm to build a web site. Today, any person can create a web site or a blog instantly and at no cost. Ten years ago a limited number of publishing firms decided what authors words were published. Today anyone can self-publish. The barriers to entry are diminishing in many categories.

As a marketer, how will you respond and measure performance when your consumers can also become producers? Do you measure the production of media content that consumers produce about your company or product? Do you evaluate whether that publsihed content is positive or negative? Do you attempt to pariticipate in the conversation?

One last thought. We talk about citizens as consumers. When everyone becomes both a consumer and a producer, will the language change?

2008 Marketing predictions and 2009 trends

Last year, I suggested watching these trends in 2008. No, I did not predict the recession, nor did I predict that the primaries and election politics would be so engaging.

10. Mobile Marketing. i said we are still in the experimentation mode. I think this is still true, although the footprint is expanding. The U.S. still lags Asia. Look for more advanced promotional marketing, and movement beyond the test and learn stage in '09

9. Green. Still a hot topic as the year ends, but the discussion seems to have wanted as economic anxiety has risen. It will stay on the radar in '09.

8. Creativity. It's time to get creativity back in our marketing programs. Not just great creative (the art) but creativity as marketers, bringing new approaches and ideas to the market. There's so much untapped potential with the capabilities marketers have today versus just a few short years ago. I said that a year ago and not much has changed. Lots of potential here for marketers!

7. Investment Thinking. I said, "Marketing measurement is ready to hit the mainstream and move beyond lip service...it's not that creativity doesn't matter - it matters a lot. But as a means to an end, and the end must be measurable." Result for 2008 - it's still true and some progress was made in '08. Look for increased accountability in 2009 as budets tighten and accountability increases.

6. Mass Is Dead. I said, "We've all heard it. It's true. The writer's strike, if it lasts, will be the proof. No one will miss network or even major cable shows after a while." Result" On target. Does anyone really miss Lost or American Idol?? Targeted media is the trend. SBTV.com for examle, :)

5. Direct is Alive. Online. The ability to converse with your customer in a 1:1 opt-in world is like finding a haystack full of needles. Still true.

4. Integrate. I said, "Integration of marketing processes into the selling process. Integration of all marketing element from strategy through execution, across media, web, promotion, packaging, etc.. It's all about marketing systems. Connect the dots so it all makes sense, then measure every step." Marketers are trying, although not many have solved it.

3. Narrowcast. Such a cool trend. "Micro-media networks are like micro-breweries. You may not always like the taste, but you have to experience them. Look for targeted messaging to grow rapidly as networks expand and begin to appear in places you've never thought of -- how about your local bank or dry cleaner?" Love this. Still true for '09. More to come!

What, no #2 or #1? I told you I'd try to keep it short. And leaving out #1 and #2 might spark your own creativity. What else will happen in 2009?

Content Was King

"Content is King" has long been the mantra for successfully driving visitors to web sites under a paradigm that declares that consumers and customers will flock to sites with the most relevant information. This model generally worked as long as marketers could promote sites and generate initial visits. The fallacy is that the "Content is King" model lives in the old push model of content delivery. The advent of social marketing capabilities and the corresponding ability of consumers and customers to generate their own media/content leaves the content push model behind. Generating traffic and return visits is becoming a function of the ability of your audience to engage and immerse themselves by interacting with one another within your online environment. If content was King, "Place" is now Queen. Is your site a recognized and compelling Place for your customers to congregate? Increase your ROI on web marketing investment by offering a compelling Place rather than exclusively pushing Content information.

One more comment - I love the phrase "consumer generated media" rather than "consumer generated content". First labeled by old compadre' Pete Blackshaw (Nielsen Online), "user generated media" focused on the notion that users create media for consumption by others, making the process an interaction rather than simply a push of content.

Will brand personalization generate profit?

Interesting comments are popping up in the marketing literature regarding the advent of personalization of brands. This trend has been growing over the past several years and has become more prominent as technology permits efficient implementation of persoanalization. Jim Holbrook, CEO of eMak, summarized the shift toward personalization of brands in a recent eMak e-mail, saying "Now its about brands conforming to consumer preferences, rather than consumers being conformists." In other words, why wear an Izod logo shirt or a Nike cap, when you can personalize your blue jeans to your exact style and size, wear a personalized cologne, and create your own pizza combination (including naming and posting the pizza combination for others to view)?

As consumer marketers, this trend toward personalizing the brand experience is exhilirating because of the many marketing opportunities that it creates (can't you feel the energy of the agency creative teams buzzing on this topic?), but care must be taken to ensure that both short and long-term ROI can be generated from impact of personalizing the brand. Can it be achieved? Yes. But not in every instance. Marketers should evaluate the cost structures implicit in personalization and ensure that the consumer response will justify the operational impact. Ask whether the personalization of the brand permits the brand to command a premium in the marketplace.

Marketing Dashboard

A Google search on "Marketing Dashboard" generates 285,000 responses. That's a phenomenal number given the relatively few businesses that actually use a marketing dashboard.

After speaking with several marketers recently about the use of dashboards, I came to a seemingly obvious but critical conclusion. A dashboard is only as good as the data feeding it. A marketing dashboard is only useful if it ties to the marketing objectives and performance goals of the organization. Without this connection between marketing data, marketing objectives and business performance metrics, the dashboard is only a sexy gadget. Generally, marketers love gadgets. But this one won't gain you any support without the proper alignment.

A short but nice overview of marketing dashboards can be found on Chief Marketer. Of course, you could also read the 285,000 links on Google.

Top 10 Marketing Trends - Another List for 2008

Everyone's got to have one. Here's mine. It's brief.

In no particular order, watch these trends in 2008:
10. Mobile Marketing. We're still in the experimentation mode. Look for more advanced promotional marketing, and movement beyond the test and learn stage. Cellfire has been doing some cool promotions - I tried it just to prove to my teenagers that I could download a coupon on my cell and get a free burger...

9. Green. Continued enthusiasm for a green world. See earlier post on Sustainability and the Spiral of Expectations.

8. Creativity. It's time to get creativity back in our marketing programs. Not just great creative (the art) but creativity as marketers, bringing new approaches and ideas to the market. There's so much untapped potential with the capabilities marketers have today versus just a few short years ago. Let's make s--t happen!

7. Investment Thinking. Marketing measurement is ready to hit the mainstream and move beyond lip service. Of course, this is a theme of this Blog so of course I believe this to be true. It's not that creativity doesn't matter - it matters a lot. But as a means to an end, and the end must be measurable.

6. Mass Is Dead. We've all heard it. It's true. The writer's strike, if it lasts, will be the proof. No one will miss network or even major cable shows after a while.

5. Direct is Alive. Online or offline, direct connection with consumers is where the action will be. The ability to converse with your customer in a 1:1 opt-in world is like finding a haystack full of needles.

4. Integrate. Integration of marketing processes into the selling process. Integration of all marketing element from strategy through execution, across media, web, promotion, packaging, etc.. It's all about marketing systems. Connect the dots so it all makes sense, then measure every step.

3. Narrowcast. Such a cool trend. Micro-media networks are like micro-breweries. You may not always like the taste, but you have to experience them. Look for targeted messaging to grow rapidly as networks expand and begin to appear in places you've never thought of -- how about your local bank or dry cleaner?

What, no #2 or #1? I told you I'd try to keep it short. And leaving out #1 and #2 might spark your own creativity. What else will happen in 2008?

Brand Paradigms Harming CMOs?

There is a very thought provoking article recently published on Brand Channel, titled "The End of the Master Brand" which challenges the core paradigms that brand marketers have used to organize thinking about brand portfolios for the past 20+ years. Going beyond a critique of brand architecture as we know it and a suggested alternative way to view portfolios, the article suggests that the forced structure of brand architectures alienates marketers and may inhibit marketers from gaining a seat at the C-Level strategic table. Do you agree? I think that may be going a bit far, but it certainly raises an interesting question about whether force-fitting paradigms is harming strategic marketers, and we know that average tenure of CMOs is remarkably short. Linking those two thoughts - perhaps there is more here than meets the eye.

Retail Banking Shows Us How To Brand in a Commoditized Industry

By the way, there are lots of similarities between the issues faced by the commercial printing industry and the issues faced by the retail banking industry. Retail banking is just further ahead on the curve. Banks went through a period of years in which retail banking became viewed as a commodity and “all banks are alike” so “just give me the best rates”. As much as banks tried toaster giveaways, nothing worked. As much as banks screamed “we provide great service”, nobody listened. Only in the past couple of years have banks learned that with an integrated rebranding effort they could attract new customers. In their world, they began to distribute banking access to smaller retail outlets closer to their retail customers (which is why there seems to be a bank going up on every corner!) and they began to use their retail space as selling space...that is, as a store (not just a waiting line with ropes and maybe a few chairs to wait in). Today, a contemporary bank is fully branded with visually integrated sales materials, site layout, building design and furnishings, logos, signage, advertising, and programmed digital communications in the bank - all geared towards selling and cross-selling. While retail banking is a far cry from industries such as commercial printing, it does demonstrate that the future is bright for traditional industries that can embrace technology , leverage branding concepts and adapt to changing customer needs not only in the services they sell and production processes, but also in how they communicate. Successful banks are moving away from the threat of commoditization. It can be done in other industries facing commoditization.