forget kotler - the new rules of marketing - a presentation by mahesh murthy of pinstormsummit...
DESCRIPTION
Kotler's 4P's framework is no longer relevant in this digitally-connected world. So what are the new rules of marketing? This presentation by Mahesh Murthy of Pinstorm delivered at the Social Media Summit Chennai in Nov 2011 attempts to answer the question.TRANSCRIPT
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Forget Kotler. The 20 new rules of marketing.
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Two ways to look at the future: blue-sky. And extend key parts of the present.
Gibson: The future’s already here. It’s just not evenly distributed.
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We all grew up
with Kotler’s 4P’s.
Product.
Pricing.
Placement.
Promotion.
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Real-time Brand Management
These date back to 1959.
Let’s see what’s happening today.
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Product: Neurons beat atoms
+
+
=
+
=
+
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Pricing: Variability beats fixed.
>
>
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Placement: Everywhere beats some places
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Promotion: Less beats more
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It’s time to let go of the 4Ps.
They’re almost meaningless.
And where they’re
not, they’re useless.
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Real-time Brand Management
Things have changed.
So what are the new rules?
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1. Digital is not niche anymore. It is mainstream. Even in India.
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Here’s the current picture we see
Desktop
Net
users:
85m
Mobile
Net
users:
80m
Indian net users: 135m
Indian C&S homes: 105m
Star Plus viewership: 25m
ToI national circulation: 7m
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Net users
C&S hh
2008 2009 2010 2011 2013 2012
10m
20m
30m
40m
50m
60m
70m
80m
90m
100m
2007
110m
120m
130m
140m
150m
160m
SM users
Critically, Indian internet users have already crossed Cable &
Satellite TV households. Soon social media users will, too.
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And here’s the picture we see for 2014
Desktop
Net
users:
150m
Mobile
Net
users:
225m
Indian Net users: 300m
Indian C&S homes: 140m
Star Plus viewership (?): 35m
ToI national circulation (?):10m
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Arguably, digital is the medium where properties have the largest reach in
India. Larger than any TV channel or print pub.
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No TV or print property matches these digital properties in reach in India. Property Viewers/mth Views/mth Time/view Google 105m 5 8 min Facebook 38m 10 25 min Yahoo 28m 7 12 min YouTube 23m 4 18 min Blogspot 16m 3 7 min Wikipedia 12m 3 9 min Rediff 12m 5 14 min Orkut 11m 5 10 min IPL on TV (SEC A/B) 6m 5 24min StarPlus (SEC A/B) 5m 3 13min
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2. It’s not just the users of digital that beat others. But the usage of digital does too.
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More than the rise in users the story is
the rise in usage (IMRB/IAMAI)
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2 hrs 15 mins a day rivals or
exceeds TV consumption.
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Anybody who tells you digital is a small and unremarkable
niche or ‚a 2% medium‛ is either blind, ignorant, sells TV
or Print or all of the above.
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3. Users and
usage are great. But the cost – often free – is
the best bit.
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No TV or print property matches these digital properties in reach in India. Or cost. Property Viewers/mth Views/mth Time/view CPT (Rs.)
Google 100m 5 8 min 0-50 Facebook 38m 10 25 min 0-30 Yahoo 28m 7 12 min 100 YouTube 23m 4 18 min 0-125 Blogspot 16m 3 7 min 0-50 Wikipedia 12m 3 9 min 0 Rediff 12m 5 14 min 80 Orkut 11m 5 10 min 0-30 IPL (SEC A/B) 6m 5 24min 150 Star+ (SEC A/B) 5m 3 13min 100
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If you want to reach the mass in India,
conventional wisdom says you buy ads on IPL on TV.
A match rates 3.5% TRP. That’s 1m SEC A/B homes. Or 2.5m people. At
Rs. 1 lakh per ad-second
Facebook alone delivers 6.75m (mostly SEC A/B) daily. For as little as free.
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4. Social is the
fastest-growing digital
medium.
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Regular portal users: Average (+12%)
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Portal usage has stagnated at same
share, or lagged behind growth.
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The growth isn’t from ‘traditional’
digital media.
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Social network users: Blogspot (+196%)
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Social network users: YouTube(+219%)
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Social network users: LinkedIn (+308%)
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Social network users: Facebook (+615%)
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Social has taken over. Average (+250%)
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5. The best statistic about digital isn’t a
statistic. It’s the most trusted medium.
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If social media buzz is not managed well, reputations built over lifetimes can shatter in days
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If social media buzz is not managed well, reputations built over lifetimes can shatter in days
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Shattered reputations can cost billions
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Or even topple governments: Arab Spring
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6. Digital lets you side-step publishers – and become one yourself.
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Your own newspaper /
TV channel
with a opt-in viewership of
millions. For free.
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7. Competing on digital doesn’t need large budgets. Digital helps Davids beat Goliaths.
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Once a brand with a Rs. 20 cr ad
budget feared another with a
Rs. 200 cr ad budget.
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Once a brand with a Rs. 20 cr ad
budget feared another with a
Rs. 200 cr ad budget. No longer.
Media budgets don’t make a big difference.
Now it’s a fight between people – or creative budgets. Rs. 25k a month?
Rs. 2.5l a month? Rs. 25 l a month?
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Is your story worth repeating?
Are you being remark-worthy?
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8. Media is vacating
editorial to become
marketing.
Marketing can now
take on editorial leadership.
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It’s not about advertising –
but your own editorial.
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It’s not about advertising – but your own editorial.
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9. Number of fans is irrelevant. Your edge rank drives relevance. Edge rank is driven by engagement. Measure engagement.
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Edge rank in action: Updates can reach no one.
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Getting a fan is a waste of money if
you don’t get engagement.
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A note on Facebook engagement
metrics
Unprompted Engagement: E1: 1000+
Prompted Engagement: E2: 2000+
Passive Engagement: E3: 5000+
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Performance metrics, engagement levels
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E1 scores
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E2, E3 scores
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10. Campaigns
used to be
built in
months. Now
they need to
be built in
minutes.
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The marketing manager’s job is now
very different.
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3 years versus 3 months
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3 months versus 3 weeks.
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pin STORM
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pin STORM
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3 days versus 3 hours
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Political
ads?
Lawyers
ads?
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Flipkart?
Landmark?
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11. The whole process needs to
change: 1st step.
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LISTEN
It stars with research – or active listening
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This brand is talked about more than 7,000 times a day. Others twice as much.
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Google Alerts is not tracking. That tracks <0.5% of mentions
of your brand typically.
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It’s not technology. It’s not services.
It’s both.
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12. The new process continues – with immediate action.
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LISTEN REACT
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pin STORM
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13. After
listening and
reaction comes
the analytics and planning.
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LISTEN
PLAN
REACT
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Analyse and report trends
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Sentiment analysis
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Competition tracking
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Issues faced by Mobile Services Customers
Figures for September reflect overall trend
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14. After listening,
reacting, planning comes the pro-
action
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LISTEN
PLAN
REACT PRO-ACT
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Social Media properties created
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Reactions to our tweets!
On Twitter..
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15. The process continues, relentlessly. 7
days a week.
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LISTEN
PLAN
REACT PRO-ACT
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Some brand customers are more active on weekends. Does that mean we won’t talk to them because we
don’t work weekends?
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Pinstorm creative teams now work in shifts. Some day others will, too.
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16. The big change is not in how agencies work – but how marketers need to work.
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Looking at the process again
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LISTEN
PLAN
REACT PRO-ACT
Corporate Communications,
Brand Marketing
Brand Marketing,
Product Marketing,
Employer branding Customer Service
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LISTEN
PLAN
REACT PRO-ACT
Customer Service Corporate Communications,
Brand Marketing
Brand Marketing,
Product Marketing,
Employer branding
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What happens if you’re not
coordinated?
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It’s easy to get it wrong in digital: short-term thinking, non-integrated work
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It’s easy to get it wrong in digital: focusing on SMM & not ORM
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It’s easy to get it wrong in digital: different teams on ORM, SMM
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It’s easy to get it wrong in digital: look, feel and action that is different everywhere
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How will you re-organise?
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17. It’s about training people to speak like you do.
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Find and define your voice
– and tone of voice.
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18. It’s not about being a generalist. Or
a specialist. But about being a multi-
specialty agency.
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SEM
Site/SEO
E-com
Optimi-sation
SVO
SMM
Comp.
Track
Directory
listing
Online
Evangelist
Mgt
Digital is increasingly not about specialization. But about multi-specialization.
ORM
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The era of the specialist is over. Pinstorm started as a pure SEM firm 8 yrs ago. Now none exist. No pure-SEO, pure-display, pure-site dev firms exist any more either. Today’s pure-social firms will disappear too. Multi-specialists will survive.
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19. You need to map out an entirely
new set of channels – or evangelists.
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Database of
3,500+: Essential to
building bespoke
evangelist lists
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20. The new book on the rules of marketing is yet to be written. It’ll take people, technology and boldness to create this future. Partner with a co-explorer.