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Mobile     Marketing




MIS        Simon Vandyck
23/03/12   Vince Vollebergh
           Max van Veen
Agenda
1. Introduction
2. Comparison with traditional media
3. Issues
4. SWOT-analysis
5. McDonalds case
6. Implementation
7. Future perspective
8. Conclusion
What is Mobile Marketing?

According to Mobile Marketing Association (2009):
  “Mobile Marketing is a set of practices ,
that enables organizations to communicate
      and engage with their audience,
       in an interactive and relevant
   manner, through any mobile device or
                  network.”
Stakeholders in MM
Current situation
                   Search after      Becoming
Search for local
                   seeing ad on     important in
 information
                      phone       shopping habits



Mobile ads work!
However: full potential
not yet captured
Problem Statement


How can mobile marketing add
   value to your business?
Example: QR-code
Comparison with traditional media




Differences on two points:

1. Degree of interactivity
2. Degree of location dependence/relevance
Comparison with traditional
         media
Discussion

Do you think ‘the new media’ will replace
    traditional media in the long run?

            Why or why not?
Issues 2005-2012
IIssue 1: Exploiting the capabilities of Mobile Marketing
Issues 2005-2012

IIssue 2: Using Universal Appeals to Tap into Global Markets

• in 2012, 33% of the mobile searches on Google involve local
intent

• A pilot strategy is used to initiate Local Mobile Marketing

• Numerous companies emerge that offer Local Mobile
Marketing support (i.e.
clientstreams.com, localmobilemarketingformula.com, etc)
Issues 2005-2012
Issue 3: Addressing privacy concerns

• Reveal Yourself
      •Disclose offer terms
• Privacy Hot Seat
      •Increasing strict federal laws concerning consumers privacy
• Did you get permission?
      •Consumers need to opt-in
• Hidden Charges
      •Unauthorized charges to a consumers’ phone bill
• Patent Problem
      •More relevant for software and hardware companies2
Issues 2005-2012
Issue 4: Aligning Value-Chain partners

2
Issues 2005-2012
                   Conclusion
Issues that have been dealt with      Topics that are still an issue today




Exploiting the capabilities of Mobile Addressing privacy concerns
Marketing

Using Universal Appeals to Tap into
Global Markets

Aligning Value-Chain partners
Mobile Marketing: a SWOT
        Analysis
     Strength               Weakness


                 Mobile
                Marketing


    Opportunity              Threat
Strengths

• Market for people who cannot afford a PC
• Independence of location
• Personalization
• Target specific audience
• Relatively cheap
Weaknesses
• General   intolerance of advertising on personal
devices
• Current WAP technology underdeveloped
• Trial and error process for mobile marketers in
order to succeed
• Marketers are wary about consumers’ privacy
• Low reach
Opportunities

• Cell phone is a personal device  easy to create
personal relationship with customer
• Messages sent to a phone are more likely to be read
then an email
• Build customer base
• New field of marketing
Threats

• Scarcity of mobile websites
• New field of marketing (uncertainty)
• Decentralized industry, many different providers
• Reliable metrics are needed to calculate the mobile
marketing impact
Mobile ad campaigns running on Location
enabled Mobile devices
•   Mcdonald’s was able to increase foot
    traffic to stores by 33% in one day by
    Foursquare campaign

•   Costs: $1000,-
Implementation



Android, Blackberry or iPhone?
Implementation

• 36% of iPhone buyers previously
Android/Blackberry

• 50% of upgraders come from Blackberry,
39% from Android

• Strong Member Platform Jumping
Implementation
Implementation
Implementation
1. Define the Strategy
2. Determine the Communication
3. Understand the True Cost
4. Allow the Customer to Choose
5. Allow Customers to Manage the Communication
6. Manage Consumer Data with Respect
7. Make the Offer Relevant and Valuable
Future perspective


How do you see the future of Mobile
           Marketing?
Future perspective

• Mobile marketing will complement traditional forms
of advertising
• Companies will have to figure out how to integrate a
mobile marketing strategy within their overall
marketing strategy
• Mobile marketing can be a source of competitive
advantage
Future perspective

People try to avoid advertising and promotions
     because of the pushy character of it

 Mobile marketers should therefore carefully
         interact with customers!
Conclusion
How can mobile marketing add value to your business?

• Exploit strengths: lots of potential not yet captured
• Explore future opportunities
• Follow 7-step implementation approach
• Make use of all platforms (Android, iOS, Blackberry)
• Build interactive relationship, but keep privacy in mind
• Complementary to traditional media

Lead, don’t follow!
Referencelist
•   http://www.youtube.com/watch?v=er7RtzpBccc
•   http://www.youtube.com/watch?v=CjUcq_E4I-s
•   http://www.youtube.com/watch?v=0scn4dgxJoY
•   http://qrcode.kaywa.com/
•   http://searchengineland.com/the-pros-and-cons-of-mobile-marketing-12207
•   http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&hid=13&sid=2d1add88-2e32-4293-81df-
    50f6c1002b19%40sessionmgr11
•   http://www.mobilemarketer.com/cms/news/advertising/11613.html
•   http://www.mobilemarketer.com/cms/news/advertising/11134.html
•   http://www.mobilemarketer.com/cms/news/advertising/11189.html
•   http://www.mobilemarketeducation.com/case_mcdonalds.php
•   http://www.youtube.com/watch?v=z5SXAY5S7XQ
•   http://www.mobilemarketingwatch.com/android-blackberry-bleeding-users-to-iphone-4s-20596/
•   http://www.slideshare.net/LorelMarketingGroup/7-stes-to-implementing-mobile-in

•   Sultan, F. & Rohm, A.J. (2005). The coming era of “ brand in the hand” marketing, MIT Sloan Management
    Review, Vol.47, Iss.1, p.83-90.
•   Brown, C.V., DeHayes, D.W., Hoffer, J.A., Wainright Martin, E. & Perkins, W.C. (2009). Managing
    Information Technology, Pearson Education. Ch.10: Methodologies for custom software development.
•   Huang. R.Y. (2011). Value, interest and power: A three dimensional model for mobile
•   marketing stakeholder analysis, International Journal of Mobile Marketing, Vol.6, Iss.1, p.109-119.

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Mobile Marketing

  • 1. Mobile Marketing MIS Simon Vandyck 23/03/12 Vince Vollebergh Max van Veen
  • 2. Agenda 1. Introduction 2. Comparison with traditional media 3. Issues 4. SWOT-analysis 5. McDonalds case 6. Implementation 7. Future perspective 8. Conclusion
  • 3.
  • 4. What is Mobile Marketing? According to Mobile Marketing Association (2009): “Mobile Marketing is a set of practices , that enables organizations to communicate and engage with their audience, in an interactive and relevant manner, through any mobile device or network.”
  • 6. Current situation Search after Becoming Search for local seeing ad on important in information phone shopping habits Mobile ads work! However: full potential not yet captured
  • 7. Problem Statement How can mobile marketing add value to your business?
  • 9. Comparison with traditional media Differences on two points: 1. Degree of interactivity 2. Degree of location dependence/relevance
  • 11. Discussion Do you think ‘the new media’ will replace traditional media in the long run? Why or why not?
  • 12. Issues 2005-2012 IIssue 1: Exploiting the capabilities of Mobile Marketing
  • 13. Issues 2005-2012 IIssue 2: Using Universal Appeals to Tap into Global Markets • in 2012, 33% of the mobile searches on Google involve local intent • A pilot strategy is used to initiate Local Mobile Marketing • Numerous companies emerge that offer Local Mobile Marketing support (i.e. clientstreams.com, localmobilemarketingformula.com, etc)
  • 14. Issues 2005-2012 Issue 3: Addressing privacy concerns • Reveal Yourself •Disclose offer terms • Privacy Hot Seat •Increasing strict federal laws concerning consumers privacy • Did you get permission? •Consumers need to opt-in • Hidden Charges •Unauthorized charges to a consumers’ phone bill • Patent Problem •More relevant for software and hardware companies2
  • 15. Issues 2005-2012 Issue 4: Aligning Value-Chain partners 2
  • 16. Issues 2005-2012 Conclusion Issues that have been dealt with Topics that are still an issue today Exploiting the capabilities of Mobile Addressing privacy concerns Marketing Using Universal Appeals to Tap into Global Markets Aligning Value-Chain partners
  • 17. Mobile Marketing: a SWOT Analysis Strength Weakness Mobile Marketing Opportunity Threat
  • 18. Strengths • Market for people who cannot afford a PC • Independence of location • Personalization • Target specific audience • Relatively cheap
  • 19. Weaknesses • General intolerance of advertising on personal devices • Current WAP technology underdeveloped • Trial and error process for mobile marketers in order to succeed • Marketers are wary about consumers’ privacy • Low reach
  • 20. Opportunities • Cell phone is a personal device  easy to create personal relationship with customer • Messages sent to a phone are more likely to be read then an email • Build customer base • New field of marketing
  • 21. Threats • Scarcity of mobile websites • New field of marketing (uncertainty) • Decentralized industry, many different providers • Reliable metrics are needed to calculate the mobile marketing impact
  • 22.
  • 23. Mobile ad campaigns running on Location enabled Mobile devices
  • 24. Mcdonald’s was able to increase foot traffic to stores by 33% in one day by Foursquare campaign • Costs: $1000,-
  • 26. Implementation • 36% of iPhone buyers previously Android/Blackberry • 50% of upgraders come from Blackberry, 39% from Android • Strong Member Platform Jumping
  • 29. Implementation 1. Define the Strategy 2. Determine the Communication 3. Understand the True Cost 4. Allow the Customer to Choose 5. Allow Customers to Manage the Communication 6. Manage Consumer Data with Respect 7. Make the Offer Relevant and Valuable
  • 30. Future perspective How do you see the future of Mobile Marketing?
  • 31. Future perspective • Mobile marketing will complement traditional forms of advertising • Companies will have to figure out how to integrate a mobile marketing strategy within their overall marketing strategy • Mobile marketing can be a source of competitive advantage
  • 32. Future perspective People try to avoid advertising and promotions because of the pushy character of it Mobile marketers should therefore carefully interact with customers!
  • 33. Conclusion How can mobile marketing add value to your business? • Exploit strengths: lots of potential not yet captured • Explore future opportunities • Follow 7-step implementation approach • Make use of all platforms (Android, iOS, Blackberry) • Build interactive relationship, but keep privacy in mind • Complementary to traditional media Lead, don’t follow!
  • 34. Referencelist • http://www.youtube.com/watch?v=er7RtzpBccc • http://www.youtube.com/watch?v=CjUcq_E4I-s • http://www.youtube.com/watch?v=0scn4dgxJoY • http://qrcode.kaywa.com/ • http://searchengineland.com/the-pros-and-cons-of-mobile-marketing-12207 • http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&hid=13&sid=2d1add88-2e32-4293-81df- 50f6c1002b19%40sessionmgr11 • http://www.mobilemarketer.com/cms/news/advertising/11613.html • http://www.mobilemarketer.com/cms/news/advertising/11134.html • http://www.mobilemarketer.com/cms/news/advertising/11189.html • http://www.mobilemarketeducation.com/case_mcdonalds.php • http://www.youtube.com/watch?v=z5SXAY5S7XQ • http://www.mobilemarketingwatch.com/android-blackberry-bleeding-users-to-iphone-4s-20596/ • http://www.slideshare.net/LorelMarketingGroup/7-stes-to-implementing-mobile-in • Sultan, F. & Rohm, A.J. (2005). The coming era of “ brand in the hand” marketing, MIT Sloan Management Review, Vol.47, Iss.1, p.83-90. • Brown, C.V., DeHayes, D.W., Hoffer, J.A., Wainright Martin, E. & Perkins, W.C. (2009). Managing Information Technology, Pearson Education. Ch.10: Methodologies for custom software development. • Huang. R.Y. (2011). Value, interest and power: A three dimensional model for mobile • marketing stakeholder analysis, International Journal of Mobile Marketing, Vol.6, Iss.1, p.109-119.