The Key Changes in Marketing Communikation SIBE Lecture 150710

1 von EndSeitenzahl
Principles of Marketing/ E-marketing &
E-business/ Marketing and Sales
Management
Day 1: Principles of Marketing /
Marketing and Sales Management
SIBE-Management-Master
Dr. Ute Hillmer
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

July 2015 Dr. Ute Hillmer
Key Elements of Marketing
Communication in an
Online/Offline World

WHO is Dr. Ute
Hillmer? anexpertinpositioningandpromotingtechnology
products,withacarvingforinnovativeproductsthat
arenotself-explaining.
Withsuchproducts,humanbehaviorisoftenoutsidethe
boundariesofrationality-despiteitseconomiccontext.
Buyingbehaviorisheretypicallyaresultofsocial,cognitive
andemotionalfactors,alongwiththeeconomicones.

What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)
• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993

What’s Ute’s
STORY?Iaminbusinesstochange
thelivesofmytechnology
clients bygivingpurposeto
theirwork!

and turn their customers into raving fans!

Agenda1. Background and Reframe
2. Marketing Today: the new Buying Decision Process
3. How to Segment a Market
4. Buyer/User-Typologies
5. Niche Markets
6. Positioning
7. Content Marketing
8. Why is Product Marketing Changing?
9. Customer Touch Points

Marketing Today:
the New Buying
Decision Process

TheAim of Marketing
Marketing aims to influence the buyer and
buying center at the moment and place
when they are most open to influences
towards a brand choice and buying
decision.

Funnel-Metaphor for a Buying Decision
active evaluation
many brands
Grafik close to Edelman 2010, p.65
buying decision
Initial
considerationTrigger
lesser and lesser brands

Digitally supported Buying Decision
active
Evaluation
Post-Sales
Experience
Enlarged
Evaluation
Ambassador
Loyalty Loop
Active
Evaluation
Model close to Edelman 2010, p.65
Moment of Purchase
Initial
Consideration
Trigger

The Core Changes
1. Consumers and buyers connect with
brands in fundamentally new ways – often
beyond manufacturers or dealers' control
2. They evaluate a shifting array of options
during the evaluation process and remain
engaged with the brand after purchase

2014 B2B Buyer Behavior Survey
• Web search is the top source of information
• B2B buyers strategically browse social media
• The number of sources used to research and
evaluate purchase has increased
• There is an increased awareness of purchase
options
• The evaluation process is longer and more
satisfying
DemandGen Report Survey 2014

Key Information Sources
The 2014 B2B Buyer Behaviour Survey

What Role does Social Media Play?

The core ingredients
to influence a
consumer or buyer
are ?

How to Segment a
Market?

What is Market Segmentation?
Market segmentation divides a broad target market into
subsets of consumers, businesses, or countries who
have, or are perceived to have, common needs, interests,
and priorities.
Segmentation is used to identify and further define the
target customers.
How have Market Segments changed over the last
50 years?

Common Ways to Segment a Market
Geographic Segmentation
according to geographic criteria—nations, states, regions, countries, cities, neighborhoods, or postal codes.
Demographic Segmentation
based on variables such as age, gender, occupation and education level or according to perceived benefits which a product/service may
provide.
Speciality: ‘firmographic’ or ‘feature based’ segmentation, commonly used in B2B: segmentation based on features such as company size
(revenue or number of employees), industry sector, location (country and/or region).
Behavioral Segmentation
divides consumers into groups according to their knowledge of, attitude towards, usage rate, response, loyalty status, and readiness stage to a
product. Behavioral segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
A good starting point for market segmentation!
Psychographic Segmentation (Lifestyle)
measured by studying activities, interests, and opinions (AIOs) of customers. It considers how people spend their time and which external
influences they are most responsive to /influenced by. Psychographic identifies the personal activities and targeted lifestyle the target subject
endures, or the image they are attempting to project. Mass Media has a predominant influence and effect on Psychographic segmentation.
Segmentation can take place according to benefits sought by the consumer/customer.
Cultural Segmentation
used to classify markets according to cultural origin.

Why to Segment a Market?

How to SegmentYourTargetMarket?
Sinusmilieu

NielsengebietenachACNielsen

GenderandAge

How to Segment Your Target Market?

Select your Segmentation Criteria
Measurability
• “otherwise the scheme will not be operational”
• next to impossible in some markets, hard in most markets => most companies to
use more qualitative and intuitive methods
Substantiality
• “the variable should be relevant to a substantial group of customers”
• Challenge: find the right size / balance: large group segment: risk of diluting
effectiveness
• Too small: you lose the benefits of economies of scale.
• Sometime one large customer
Operational relevance
• Segmentation should enable to offer the suitable product/service to the chosen
segment, e.g. faster delivery service, special 24-hour technical support, etc.
Quelle: Webster, 2003

Why do certain
innovations diffuse much
faster than others?
Example:
Take the Market of DisruptiveInnovations

New Innovations usually …
change the
way how we
do things...
and we go along
happily and fast
or not so fast ...

Successful (B2B) marketing is…
• about segmenting customer experiences to fit the
product life cycle and the typical customer profile
• about developing and maintaining trust – matching
the different customer segments need
• about initiating a customer centric dialog that takes
the different customer profiles into consideration
Behavioral economics!

Behavioural Economics
Behavioral economics … study the effects of social, cognitive
and emotional factors on the economic decisions of individuals
and institutions and the consequences for market prices, returns
and the resource allocation. The fields are primarily concerned
with the bounds of rationality of economic agents. Behavioral
models typically integrate insights from psychology with neo-
classical economic theory. In so doing they cover a range of
concepts, methods, and fields.[1]
Behavioral analysts are not only concerned with the effects of
market decisions but also with public choice, which describes
another source of economic decisions with related biases
towards promoting self-interest.
[1] The New Palgrave Dictionary of Economics

User-
Typologies

“Innovativeness”
= degree to which an individual or a unit is relatively
earlier in adopting new technologies than other
members of a system
Source: Rogers Diffusion of Innovation 1995

Time
Marketsize
Rogers Diffusion of Innovation 1995
an idealized technology product lifecycle
Continuous Innovation
Disruptive Innovation
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%

Time
Marketsize
Time
Marketsize
Time
Marketsize
Rogers Diffusion of Innovation 1995
Moore; Crossing the Chasm 1999.
diffusion of innovation varies…

Time
Marketsize
technology life cycle and its buyer
categories
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
mainstream behaviour
Increasingly
conforming behaviour
Hillmer, Technology Acceptance in Mechatronics, 2009.
Zeit
Marktgröße

LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
individualistic behaviour
Increasingly
individualistic
behaviour
Hillmer, Technology Acceptance in Mechatronics, 2009.
Zeit
Marktgröße

Inventors: Techies
Technologyistheirlife
Technology - Crazy
– Spend hours to get the product to work
– Do everything to help the product
– Technology should be for free
Forgiving souls
– Don’t mind lousy documentation and weird procedures to achieve
functionality
– Want technology first – no need for a sales channel
• Their role: they move technology forward but do not
generate much diffusion + generate no income
Moore; Crossing the Chasm 1999.

Visionaries
Technologyenthusiasticbusinessmen,drivenbyadream
• Businessman first
- driven to be the first
- new technologies are used to serve their own strategic benefit
- don’t want incremental but fundamental improvements
- make business world aware of new technologies
- not very price-sensitive, have project budget
- live in the future
- communicate with techies and other visionaries

Visionaries (2)
• Take a risk
- love publicity
- risky projects
- start projects from ground up, don‘t want standards, want to
develop them
- buy by intuition (but may claim otherwise)
- highly motivated, driven by a dream

Visionaries (3)
• Excellent communicators
- charismatic; they fight for their project
- like to serve as a reference
- network with techies and pragmatists
- too many references de-motivate visionaries
- look for new ideas in communication with intelligent people
• Their role: they fund the product development + give
the innovation a “real” application

Pragmatists
Lookformeasurable,incrementalimprovement
Driven by business results
- improved productivity
• Avoid risk
- risk is a negative term
- want to work with market leader/ established firms
- look for product quality, support, consulting, good interfaces,
reliability
- want standards, “save buys”
- need references
- live in the present

Pragmatists(2)
Loyal customers
• are interested in company they buy from
• revenue and profit must grow steadily “stability”
• communicate within company and industry
• the first mass market
Their role: They hold the key to the mass market
BUT: you need to be established in order for them to buy
from you but you don‘t get established until they buy
from you ! ?

Pragmatists (3)
Consequences out of this profile
• One really needs to be familiar with the processes and
issues that worry the pragmatists
 Offer a clear relative advantage to them

Conservatives
“Idon’thavetoliketheproduct,evenifIuseit”
- They do what pragmatics do, but later
- Invest in technology to keep up with competition
- Have low technical competence

Conservatives(2)
- predictable
- want everything faster, cheaper, improved
- are price sensitive
- like bundles, pre-installed solutions
- “if it isn’t broken, don’t fix it”
- very interested in service and support
Their role: huge mass market

Innovation Marketing –
What role does
engagement and
dialog play? “

LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
early adopters = visionaries
Time
Marktsize

LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
early majority = pragmatists
Time
Marktsize

The
Niche

Time
Marketsize
technology life cycle and “the gap” or:
why you should focus
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Moor 1999

Why to choose a niche target market
Become a niche expert
• learn to understand their urgent needs and biggest desires
• know where to find them
• align products and services to the needs in the niche
• learn to speak their language
• understand their processes
• discover their networks and their media mix
• built an effective network and communicate effectively
• They will know you are committed to them
Become #1 in the niche market

Ways out of the niche
Horizontal Expansion:
• Sell more services to the same market
Vertical Expansion:
• Sell your services to more markets

Positio-
ning
A Workshop Lecture

What is Positioning?
Positioning defines where your product or service stands in relation to others
offering similar products and services in the marketplace as well as the mind of
the consumer.
Positioning always starts with a “product” (merchandise, a service, a company, an
institution, or even a person….)
but positioning is not what you do to that product. Positioning is what you do to
the mind of the prospect or customer.
Positioning is the act of designing the company’s
offering and image to occupy distinctive place in
the mind of the target market.
Kottler Keller

What is Positioning?
Image by talk2frank from Stock.Xchng

What is Positioning good for?
Position, differenciate and communicate
Think from your customers perspective, before you talk to them
#1 Relevance
Is the promissed added value of relevance to your target segment? Does
your customer care?
#2 Differenciation
Are you unique? Do you offer something „more“ that what your customers
offer?
#3 everybody and everywhere, the message is the same
One core message from every employee + partner and through every
channel

Target Market
.
.
.
.
..
.
.

Your Customer‘s Job
Thetasksyour
targetcustomer
has(don‘tforgetthe
buyingcenter)
What urgent
needs do they
have?
What are their
Compelling
desires?
…
…
…
…

What are the
• largestwinsyoucan gainforourcustomer
• thebiggestbenefit,customerscanobtain?
• Biggestpainswecanofferrelieffor?
…

The biggest result
Determine the biggest result your customers get
… it must be a big one!
What is your big promise?
People buy results and the
benefits they get from
these results

Whenand how do you keepour promisses?
When were your
customers really
happy?
Why?
What was the right
fit?
…
…

What product(s) do we offer?
…

Our promise (1)
We help…
…
…

Our promise (2)
What we help our customers do is:
…
…
…

Our promise (3)
Why we do what we do to serve our customers:
…
Our Vision, what we hope to achieve:
…

Our Promise (4)
How we differenciate from alternatives in the
market
…

Positionierung: Value Proposition
• Operative excellence
• Produkt exzellence
• Customer insight
Youhaveachoice:
economic
benefits
emotional
benefits
functional
benefits

Value Proposition
We help …
(do the following things) …
in order to …

Content-
Marketing

Content Marketing Def.
Content marketing/custom media
(sometimes called custom publishing,
custom content, or branded content) is
the creation and distribution of
educational and/or compelling
content in multiple formats to
attract and/or retain customers.”
Source: Content Marketing Institute and MarketingProfs

Why Content Marketing
The thinking behind it:
is the belief that if businesses deliver consistent, helpful information to
buyers at the right time, then prospects will ultimately reward the company
with their purchase and loyalty.
Content marketing equips buyers
with the knowledge to make better-
informed decisions.
It is the reason why visitors go to
your site.

Content Marketing =Thought Leadership
Content Marketing aims to create
THOUGHT LEADERSHIP
therefor
CREDIBILITY is the magic ingredient

Why is Content Marketing
important?
Average person is exposed to
5.000 ads / offers per day
Buyers have tuned out marketing

Think of anArt Gallery
Where is the Art?

People come to see art,
not empty frames or
empty walls
Content is the reason
people go to your site

Why Content Marketing ?
1. Position your company as a expert
2. Encourage your audience to consult you
3. Generate new leads
4. Progress existing leads
5. Built your database
6. Raise awareness
7. Contribute to communities
8. Give your sales team a reason to engage
9. Boost your search engine performance

Importance of Content

Starting Content Marketing
Shift thinking from marketer to publisher
1. Define a critical group of buyers
2. Determine what info these prospects really need
3. Determine how prospects want to receive
information
4. Deliver info for maximum impact on goals
5. Measure and recalibrate
or in short: Stop shouting and make yourself
useful!

Stop shouting
and make yourself useful!
means
1. Consider the interest and the
worldview of your target customer
group (=> segmentation!)
2. Tell a compelling story
for them

Principles of Content Marketing
1. It‘s not about you
Put your agenda aside and put your prospects
agenda at the heart of your marketing
2. Pick a single, high –priority issue
Pick a topic that matters to your audience and
stick to it

3. Find some blue water
Find an issue, that has not been beaten to
death, if this is not possible, put it in context or
look for a new perspective
4. Aim for a neutral tone of voice
Don’t sell – there will be opportunities for selling,
once trust has been built. You earn respect by
not selling.

5. Support your story with data
A strong story supported by credible data is
irresistible.
6. Use your customers
Real users have more credibility than you do.
7. Consider 3rd Party credibility
Bringing in a recognized analyst can add credibility

Media for Content Marketing

Exkurse:
Subjective
Realities

Subjective Construction of Reality
Each individual sees the world
through subjective lenses.
Consider typical customer
segments and try to capture
them socially and emotionally
with
Seth Godin, All Marketeers tell stories, 2009
Mischel and Morf, Handbook of self and identity, 2003.
Kelly, The psychology of personal constructs, 1991
YOUR STORY!

Ein Fahrrad!

Ein Fahrrad!
Product

Ein Fahrrad! ??
Bla
bla ... Blub
blub.
..
Blob
blob
...
Blubber
blubber..
.

Content Marketing B2B vs. B2C
- Informative or emotional?
- facts or story?
picture: Sunlab.de

Address prospect emotionally, the degree of
emotion depends on target market
Offer facts and statistics that can be used
further in combination with emotions.
Wrap content is exciting, emotion-heavy
storytelling. Awaken covetousness.
B2B prospects love a good story, but there
should be Facts and Information to support
the storytelling.
Target market is often multi-Layered e.g.
supplement for sports-people: Pro-
bodybuilder, beginner, endurance-
Sportsmen, fat people, thin people, …
More homogeneous, linear target markets
with functionally diverse buying center
B2C B2B
Content Marketing B2C vs. B2B
picture: Sunlab.de

Social Media => Traffic => Conversions Social Media => Awareness =/= Conversions
Social Media => Awareness => Trust
Company size not relevant. Fullfillment of
customer need dominates the decission
Company must be seen as trust worthy and
competent => trust and competence must
be built via content.
Emotional value added
dominates
Mixture of emotional and
funktional value dominates
Content Marketing B2C vs. B2B
B2C B2B
picture: Sunlab.de

Content Marketing Challenges
Source: B2B Content Marketing report 2012; Content Marketing Institute and MarketingProfs

Best Practice „Talking“

Produktplan,
Business Model+
Marketing

Product-
Performance
Product marketing und its role
Technology Products
Users want better services, higher
performance
Chart inspired by Norman 1999, S. 32
Product performance needs
of an average user
Unfulfilled
needs
Over-functionality;
most users don‘t use the
extended features
Technology is „good
enough“ and thus
irrelevant. The user-
experience is key.
time
Commodity
Users want ease-of-use, reliability,
low cost
Beta
Pure
Funktion
User Experience
Version
Care

TraditionalProductDevelopmentand theroleof
ProductMarketing

Why is Product
Marketing
changing?

Why must ProductMarketingchange?
9 outof 10 productinnovationsarefailing
Corporate giant or
small star-up, low-tech
or high tech, online or
offline, 9 out of 10 new
ideas fail because…
our tools are
optimized for
execution
Illustration copyright of Steve Blank, „The Startup Owners Manual“
With innovations,
you need to be in
search mode!

ATale of Fail

Webvan: a tail of fail
• A startup that promised delivery of groceries within 30 minutes of
ordering, from state-of-the-art order fulfillment centers manned by
advanced robots.
• Launched 1999;
• $10M, within 2 years $400M, raised;
• 8.5 billion market capitalization on day of IPO
• They had a compelling story, a great b-plan, a long list of features for
SW, warehouse handling,…
• Webvan executed as its board and investors asked
• from launch to fail in 2 years perfectly on plan

One of the largest failures on record
• Founded in 1991 by Motorola and a global partnership of 18
companies
• Planned to built a mobile phone system that would work anywhere on
earth
• Purchased 15 rockets from Russia, U.S. and China, 72 private
satellites were launched into orbit
• 7 Years after launch, the infrastructure was in place; 9 Month after
first call was made, the company was bankrupt.

“New Product Introduction Diagram”
The model is a good fit for an exiting company where customers
are known, the product features can be spect‘ed upfront, the
market is well defined and competition is understood!

“CustomerDevelopment” ansthe changing
Roleof ProductMarketing
Chart von Eric Ries: Lean Start up
theleanstartup.com
Idee
Bauen
Nutzer-
Daten
Lernen
Produkt /
Code
Messen
Hypothesen zu
Fakten machen Ein skalierbares und
wiederholbares
Verkaufsmodell finden

Customer Problem:
known
Product Features:
known
New:
“CustomerDevelopment”and
thechangingroleof Marketing

Customer Discovery

ANewArea in Products and Channels
Physical products through physical
channels
Virtual products through physical channels

Innovations-Management: Openby Design

Customer-
Touchpoints

Research the Key CustomerTouch Points
Ask the customer how they
– Get information
– Come to a decision
– Order and purchase
– Configure
– Stay in touch
– Use support
– …
Ask + watch your value chain
How do they
– Sell
– Take orders
– Make offers
– Configure products or services
– Communicate and engage
– Do customer support
– Stay in touch
– Use support

Awareness +
Preference
Decision
Preparation /
Pre-Sales
Order + Purchase
Production +
Logistics
After Sales +
Support
Touch-PointAnalysis
• Ads
• Google AdWords
• Google Search
• Banner
• Website
• E-Shop
• Trade Shows
• Sales
• Press Information
• Banner Ads
• YouTube/FB/Xing
• xxx recommends…
• …
• Sales
• Sales back office
• Trade shows
• Customer visit
• Offer
• Price List
• E-Shop
• Configuration-Support
• Catalog
• Brochure
• Image video
• Vendor Website
• …
• eMail
• Fax
• Telephone
• E-Shop
• Vendor
• …
• Product
• Packaging
• User-Manual
• CD
• Short Brochure
• Invoice
• …
• Installation-Support
• Runtime-Support
• Customer visit
• In-house tradeshow
• Newsletter
• Product-Flyer
• Brochure
• Reference Customer
Story
• Customer-Event
• Roadshow

Informationsquellen
#1 Internet
#2 Messen
#3 Fachzeitschriften
#4 Blog
Erstkontakt: Internetrecherche !!
Informationsquellen/KommunikationderKunden
Aktive Kontaktpunkte
#1 schreiben Email / Telefon
#2 gehen Online
#3 „ich weiß was wir brauchen“
#4 „wir haben einen Rahmenvertrag“

Internet
Google Search
Hersteller Webseite
Webseite
Blogs (aa)
Informationsquellender Kunden
Messen
aa
bb
cc
Fachzeitschriften
ITK, PC, SW, Automationstechnik,
Maschinenbau, Elektronik, Branchen FZ
„Ich weiß nicht wie die heißen“:
Markt&Technik, electronic, etz, ct,
computer business, Computer Reseller
News, Computer Woche, Linux
Magazin, Industrie und Technik,
Electronic Automation, Antriebstechnik
xx wird nicht als Informationsquelle wahrgenommen

Suggested Reading
• Value Proposition Design by A. Osterwalder, Y.Pigneur
• Groundswell by Charlene Li, Josh Bernoff
• Positioning by Trout and Ries
• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
• What would Google do by Jeff Jarvis
• All Marketeers tell Stories by Seth Godin
• 1 to 1 Marketing Future by Don Peppers
• CRM at the Speed of light by Paul Greenberg
• The Long Tail by Chris Anderson
• The Wisdom of Crowds by James Surowiecki
• Crossing the Chasm by Geoffery Moore
• Selling the Dream by Guy Kawasaki

Dankeschön!

206 von EndSeitenzahl
HERZLICHEN DANK FÜR
IHRE AUFMERKSAMKEIT!
GIBT ES FRAGEN?
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

The Key Changes in Marketing Communikation SIBE Lecture 150710

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The Key Changes in Marketing Communikation SIBE Lecture 150710