Notes

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Okay, so we just finished talking about
marketing math
101 so, hopefully that's a good framework
for you
guys to think about when you think about
what's
going to work in terms of execution and
what's not.
one other thing that I want to overlay in
the introduction that's going to
be very, very important in terms of
executions is this whole idea of digital
marketing.
So using the devices enabled by
technology, the internet, and
mobile phones to make marketing more
effective and more efficient.
So the definition of digital
marketing, you just look up on Wikipedia.
digital marketing is the use of Internet
connected devices to engage a customer,
which is all well and good, but the key
thing I want us
to remember is it's still marketing, so we
still have to have the
right brand, the right promotional
message,
the right customer strategy, and so on.
So marketing in fact is is, probably
more non-negotiable than ever because of
digital
marketing, if we get things wrong that
word is going to get out more quickly.
So just a
couple of other examples of why digital
marketing though
is interesting and why it's going to be
important to execution.
first of all there's a notion of something
called social commerce.
So commerce has never been more engaged
with multiple individuals than it is now.
So most us, certainly in the United
States, before
we try new products or services look to
reviews.
Often by complete strangers.
Could you imagine going into a city and
going to try a restaurant without at first
checking
the reviews on something like yelp.com, or
maybe
going to OpenTable, or another one of
those devices.
Would you buy a book on Amazon without
looking at the reviews first?
So commerce is much, much more social.
People taking cues from other people, both
friends and strangers.
And we'll be talking about that.
The second thing that's really, really
interesting with digital
marketing is probably more than ever there
is now
an ability to really target people at a
micro
level, based on their browsing behavior on
the Internet
based on how they use social media, and
using things
like big data to discover who it is that
you
are and what you're doing, and to send you
messages
that are more and more precise and more
and more engaging.
That's the second important trend and
that'll be coming
through in some of our discussions later
on too.
The third thing about digital marketing
that is very,
very interesting is it's never been easier
to experiment.
So say my friend Chris and I have new
business selling
shoes on the internet and we don't know
whether we should make the website blue or
red.
Well, we could just try it out.
In fact an experiment like this was done
at the Wharton school not so long ago
where
we were getting people to come to a
website
to choose different kinds of automobiles,
and what we
noticed, if the background on the web,
website was
red, and there were almost small little
flames on
the background people who went to that
website were
more likely to choose automobiles that had
high ratings
on safety.
Perhaps somehow the red color was making
them think things were dangerous.
On the other hand, if we sent people to a
green website with
a green background, looked a little bit
more like money and dollar signs.
those people were much more focused on
automobiles that were better value for
money.
So those things can be very, very easily
tested out, and in fact, some data suggest
that
there's been more experiments run in the
last
year, 2012 than all the prior years put
together.
So those
are three very important trends in digital
marketing, social commerce,
digital advertising and behavioral
targeting,
and then the ability to experiment.
Okay.
So now let's transition into the first of
the assets we have as marketers to execute
on.
that's the brand assets.
I'm just going to review some of the
things that Barbara talked about.
And add a couple of additional ideas that
become important when you execute in a
digital environment.
So first of all, just to motivate
us as to why brands are important, again
continuing from Barbara's theme.
we notice now that about half of the
assets that
are held around the world are non-tangible
assets, given value.
Think of a company like Google.
Google recently celebrated its 15th year
anniversary.
and is one of the most important brands in
the world, not because
it has huge factories and huge physical
plant, but because it has intellectual
capital.
That's kind
of the idea there.
Second thing is about 1 3rd of the value
tied up in the global stock
markets, studies have shown, are due to
brands
and the premium that people pay for
brands.
And then thirdly my colleague here, Jeremy
Siegel, who is a finance professor
at the Wharton School, wrote a book
called, Stocks for the Long Run.
And what he looked at the performance over
a 50 year period, from 1953 to
2003, on the New York Stock Exchange, and
one thing that he found was that
brands were very strong.
And widely perceived as valuable by
customers
actually had also stocks that outperform
the market.
So that's three interesting pieces of
evidence about the brand asset.
of course, as Barbara mentioned to you
branding is
also perception as much as it is, is
reality, so,
behind me on the screen is a shot of
six brands of beer, some of them you might
recognize.
And this was a study that was done way,
way back in 1964, believe it or not,
before most of us were born, I believe.
And these six brands of beer were given to
people in paper cups.
Brand A was Pabst, brand B was Colt 45 and
so on.
And then people were asked to drink these
brands
in paper cups and afterwards, to answer
the following question.
How similar is brand A to brand B?
So A is Pabst, B is Colt 45, but they
don't know that
because they're, they're drinking out of a
paper cup.
And what you notice there is all of those
brands from Pabst around to
Budweiser were all perceived by customers
drinking
from paper cups to be almost the same.
And yet that other guy all the way over to
the right, in
the perception of Guinness, which if
you've
drank Guinness is a dark, heavy beer.
At least they could figure out, well gee,
that one's different.
Now, what was really interesting when this
experiment was
repeated, is the next chart, where people
were drinking
out of the bottles, and asked how similar
they thought
these beers were to each other, we get
this big spread.
That's the difference between perception
and reality and the importance of
brand, all of those great things that
Barbara was talking about.
So just quickly again, these are the top
brands of the
world, as mentioned by Interbrand, of
2013, with, surveys just come out.
The top 10 that you see there?
It's the same top 10 as last year, but the
order's changed a little bit.
For many years, Coca-Cola was the number
one brand in the world.
now Apple is the number one brand.
And number two is Google.
I'm not saying this too much what you can
do with this
information, but it's kind of nice to see
as a marketing person.
we're only talking about those brands.
And of course, also, our focal brand and
family brands for the course, Quidsi.com.
So now I'm showing on the slide the family
of Quidsi
brands that we've talked about a little
bit as we've gone through.
Diapers.com, Soap.com and so on.
So, in addition to those kind of famous
brands
these new brands are brands that we'll be
talking about.
A couple of others that we're going to
spend some time on as well.
Warby Parker, I'd encourage you to go to
the website of these brands.
Warby Parker is a company that's
disrupting eye wear.
Harry's is the shaving company that I
mentioned earlier.
Bonobos is a men's clothing company here
in the United States that does some
interesting
online, offline, on the channel strategy
that we'll be
talking about in a subsequent session, and
of course, diapers.com.
So what are some additional things that
you do when you develop a brand in a
digital environment, and you try and
execute all
of those things that Barbara talked,
talked about?
Well, just going back to basics, you think
about your brand goal,
which is to affect people's heart,
mind, thinking and feeling, and sometimes
actions.
So you want to change the way people feel
by showing them certain messages.
You want to change the way they think, and
sometimes you want to
get them to do stuff, so let me give you
some examples there.
So, Google, and again I'd encourage you to
go to Google and Google
this, recently ran an ad campaign in the
United States called, Dear Sophie.
It was a very heart rendering campaign.
A campaign, if you watch the video you
might want
to have some tissues with you, because its
a beautiful
story of a child being born and
a father essentially sending email, making
YouTube videos,
and communicating with his daughter
through her life
using all of the products that Google has.
Now why is Google doing that?
Well, they're trying to build an emotional
connection to make you think that they
really interact with you at a much deeper
way than just purely through search.
So that's an example of a brand using
a digital marketing campaign to try to
affect
your, your heart.
thinking one of my favorite ones here.
This is an old one.
but, you know, we all have different ways
of getting our protein.
Maybe we like tofu.
Maybe we like fish.
If you're a Kiwi like me, you'd like lamb.
perhaps you like beef.
But anyway, it wasn't so long ago that
studies were done
that showed white meat was probably better
for us than red meat.
So clearly, chicken and fish are on the
white side.
beef and
lamb are probably on the red side.
But if you're pork, now, which way do you
go?
Then, are you more like the beef and lamb?
Or more like the fish and chicken?
And so some very clever marketers came up
with a slogan, Pork, the Other White Meat.
So now when I think pork, I think white.
White is good.
I'm sure they got a good sales lift out of
that.
That's an example of changing your mind.
getting you into action.
Not a great campaign.
Again, it was used in the United States by
a sort of similar
campaign back in my home country in New
Zealand.
it's difficult to get people to drink more
milk
because you drink milk at a pretty regular
rate.
And so in the United States, there was a
campaign that was run here.
It was called Got Milk.
And the idea was to sort of create a fear
if I somehow ran out of milk.
So, if my friend Chris comes to my house,
we're eating a whole bunch of cookies
while we're watching TV, and of course we,
what do you have with cookies but milk?
We go to the fridge and there's no milk.
So, sort of instilling this panic that if
I don't have milk, things
are going to be really bad, so I should go
out and buy more.
So, those are examples of tactics to
affect thinking, feeling, and action.
Now what's different in the digital
marketing execution is sometimes you
want to build this engagement through real
world events that you can
then leverage in the virtual world, and
I'm going to show examples of
that using social media and so on to get
the message out.
So,
what are these additional digital
considerations?
So, in the slide, in the blank, you
still have to have an outstanding value
proposition and
great positioning, but there's three other
things that you
have to do to execute in the digital
environment.
You need to be authentic and transparent,
Barbara's already talked a little bit
about that.
Secondly, you need to create a
personality, and be humanized and
accessible.
And then thirdly, you need to consider
that
pretty much everything you do in terms of
messages
that you put out, are going to have an
infinite life.
And also you want to put out messages that
potentially allow you to
capitalize on chance, or serendipity, I'll
show an example of that in a moment.
So, here's the first example.
as a company, again, here in the United
States, but
many of you have probably heard of this,
it's called JetBlue.
JetBlue is an airline that flies
internally around the US,
and a few years ago they ran a campaign
called AYCJ.
All you can jet, and for $600, or $599,
you could buy
a ticket that would allow you to fly
anywhere for an entire month.
Okay?
People responded to this very well, it was
promoted over Twitter.
They got about a 700% lift in traffic to
the website.
Very, very successful campaign, but here's
the extra brand consideration to think
about
in a digital environment, it just so
happened a gentleman named Drew Lawrence
was
going on a campaign, 29 cities in 29 days,
he was trying to raise money
for cancer, a very worthy thing to do and
he took advantage of this promotion.
And when he took advantage of this
promotion, this was picked up by news
outlets,
and traditional media, and, of course,
generated
a tremendous lift to the campaign for
JetBlue.
So that's what I'm saying in terms of
capitalizing on serendipity, or
putting messages out into the digital
environment that allow other good things.
Again, just continuing on, you also have
to
be a little bit careful on a digital
environment.
I'm going to show you a slide now of
McDonald's one of the world's top brands,
as
we saw in a previous slice, who tried
to start on twitter, a hash tag called
McDStories.
Hope so that I would go there and talk
about the
great time I had with my friend chomping
on a Big Mac.
unfortunately this Twitter hashtag was
hijacked
by people who didn't like McDonald's who
then produced some really kind
of negative things about the company, some
of which I've shared with you.
So that's making the point, that you just
have to be careful because of the way
people
are going to capitalize in the digital
environment
for better or for worse on your marketing
initiatives.
Then, the final thing I'd like to say here
about branding before we
just continue on and executing on the
brand asset, is back in the old
days, which weren't that far away we used
to use celebrities sometimes to endorse
our brands.
In fact it's still a fairly common tactic.
People like Tiger Woods or Michael Jordan,
people like Shaquille
O'Neal, so let me give you an example with
Shaquille O'Neal.
I happen to like Shaquille O'Neal.
He seems like a good guy.
He's a good basketball player as well.
I believe he recently completed his PhD,
and he's also a part-time policeman.
Who couldn't like Shaquille?
So you see Shaquille
on TV in the United States promoting the
Buick.
And so part of the good feeling I have
about Shaquille then transfers over on to
the Buick.
That's great news for the automobile
Buick,
because now I feel better about Buick.
But at the same time, I kind of step back
a little bit and say, you know what?
I don't know if Shaquille O'Neal is really
driving a Buick.
That doesn't seem fancy enough for
Shaquille.
So there's a bit of a mismatch between
the personality and also the brand that's
being promoted.
But of course in the age of YouTube and
social media,
what we now have is we have so-called
organic celebrities springing up.
So, what I'm showing on the slide here is
a lady
called Ree Drummond, who has positioned
herself as the so-called Pioneer Woman.
So, Ree knows everything about Southern
cooking, Southern
way of, of living in the United States.
Manners, baking and so forth.
So if I were Land O Lakes Butter, who
would be a better person to promote
my product, Ree or some famous actress?
And in the age of 2013,
Ree is a better person she's organic, and
she's authentic.
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