Archive for August, 2007

The New Marketing Reality

Ours is a business that thrives on self-analysis. Compared to say retail or manufacturing, we spend more time on the metaphorical couch trying to get at the “essence of who we are and what we do” than any other industry. Not surprising – we’re trained to constantly challenge assumptions and reject complacency in our daily work (clients after all seek our services to avoid a flat graph-line, not perpetuate it). Add to that the mega-trends that have been shifting the ground underneath us (:30 TV spot endangered, user-generated content, media-saturation, etc.) and it’s obvious why all the soul-searching of what our industry can and should be.

Alan Schulman recently penned a short article about this, and he has some clearly-presented ideas for how agencies should reinvent themselves. We’ve seen the same evidence Alan’s seen and have been moving in this direction for a while, but the article did inspire the question “So what exactly should the new marketing reality look like?”

When many of us were first baptized in the industry it was at a big Madison Ave. Ad firm in the early 90s. We were taught by everyone around us – bosses, clients, colleagues from other disciplines – that the marketing pecking order was organized largely around discipline, and went something like this:

- Advertising – the high-priests of brands, they supply “the big idea” from which all goodness and marketing communication flows
- Marketing – blue-collar types, they supply the myriad things like FSI’s and direct mail that attempt to translate “the big idea” into an actual sale
- Interactive – hmmmm, stick all the eager young types here and see what happens; worst comes to worst, animate a print ad as a banner and charge for hours

All that feels like a century ago now, but it is striking that there is no commonly-held new structure to take its place. What would such a thing look like in an age where “the big idea” must be bigger than a TV spot and three print ads?

For a brand to have relevance now, it must connect with all of it’s audiences — consumers, employees, partners, etc. – from a consistently-presented truth (the brand story) that is reinforced by every brand interaction (“saw a billboard”, “went to the web site”, “watched an ad”, “called an 800#”, etc.). But how should the industry – clients, agencies, individuals – set themselves up to work in this new marketing reality?

We think the question itself is more important than the answer – it’ll probably be a good decade or more before we settle down to a commonly held structure. But for discussion’s sake, here’s our new pecking order, organized around function:

- Marketing Strategy – responsible for crafting and interpreting the strategic direction of the brand, and ensuring that all brand stake-holders adopt and invest in the direction
- Messaging – responsible for crafting and disseminating the Brand Message across all appropriate media, utilizing the resources and skills of specialists
- Brand Operations/Support – everyone from technology to the call center staff who answer the phones/respond to the chats, this is where the marketing relationship meets reality

Key to making this kind of function-oriented model work is a collaboration and ongoing dialog between all areas: after all, without knowing what the Brand Support people are experiencing, how can the Marketing Strategy folks know their work is productive? That, as we all know, can be messy in a way the old model wasn’t. But the old model was a relatively unsophisticated system that designed to deliver a logo and tag line well, but didn’t concern itself with much after that. These days, as Mr. Schulman points out, the business of marketing is entwined in almost every aspect of the business itself.

More Second Life For Coldwell Banker

Virtual Home
ABCNews.com featured this article today on Coldwell Banker’s latest addition to its Second Life initiative (click here to read about the original project that we released this spring). Kinesis and its development partner Code4 Software worked with Coldwell Banker to build a virtual model of a real house for sale in Seattle. Avatars in Second Life can tour the house, meet with an agent, make a bid, and even negotiate a deal all within the meatverse. The real home is priced at $3million, but you and your Second Life alter-ego can check it out for free here.

At the risk of tooting our own horn, this is one more giant leap for marketing in Second Life. Any product you really need to experience before you buy it is perfect for this environment. Plus it’s convenient as heck for consumers. This is where it’s heading, folks.

The Gap between Users and Generators of Web Content is Closing Fast

 

 

 

A recent eMarketer study has found that there are currently about 64 million creators of user-generated content compared to 69 million users of user-generated content. The study reports that by 2011, this gap will close to about 95 million generators versus 101 million users. Which mean that generators and users are nearly equal in number. That’s right, nearly equal by a margin of less than 10 percent and falling.

US Users of User-Generated ContentUS Creators of User-Generated Content

So is this a threat for marketers and brands or an opportunity? Well, either way, even big bricks and mortar retailers like Wal-Mart who have traditionally relied on their stores to be the central hub of information exchange are now realizing that the web will either work with you or against you. The explosion of both content generators and content users shouts from the mountain that brands can no longer control the dissemination of information centrally. Instead, information, and sometimes mis-information, will spread like wildfire without the brand even being involved in the conversation. But if brands starts participating in the conversation – which means listening, educating and engaging – they can harness the power of the people and use it to their advantage.

These numbers signal that the sea change is not only coming, it’s already happened, and the brands that understand it and leverage it properly will succeed. But yes, it requires change. It requires a change in the way we think, change in the way we act and change in the way we do business. Ultimately, for consumers and brands alike this is a good thing. The brands that can not only allow user generated content to be created about them, but actually take part in the discussion will be stronger and rewarded by consumers with their loyalty. Consumers will feel empowered to affect change, build trust for a brand, take part in the improvement of products and services they already use, and/or share the love they feel for a brand with their friends.

At the end of the day, this is what marketing is all about – reach the consumer where they live and get them to act. The objectives have not changed, only the playing field. Brands may no longer have home field advantage, but that doesn’t mean they can’t win if they can move themselves off the bench and into the game.

 

 


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