marketing trends presentation sept 2014
DESCRIPTION
Recent presentation that I made to a lively bunch of students from DenmarkTRANSCRIPT
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New Marketing CommunicationsLessons from the Fashion Sector
Bill Webb The London College of
Fashion
Niels Brock Business School Visit
September 2014
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The Origins of Marketing
The “Four Ps” E. Jerome McCarthy, 1960 Supplier & Brand Centric FMCG Focus “The management process responsible for
identifying, anticipating and satisfying customer requirements profitably”
The UK Marketing Society, 1995 Power Shift from Manufacturer to Retailer
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The Traditional Marketing Model
Source: Pickton & Broderick, 2001
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“ The End of Marketing as we Know It” Sergio Zyman, CMO, Coca-Cola, 2000
Customers aren’t listening or responding
Marketing expenditure is wasted
Retailer brand ownership is only a stage
A new vision and new techniques are required
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Definition of New Marketing
Non-traditional ways of communicating with, and influencing, our customers
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Today’s “omni-channel” shoppers
Our customers are now skilful, “professional” shoppers - informed, demanding, time poor, connected,
promiscuous, environmentally aware......... Personal budgets have been squeezed and
stretched Buying decisions are more complex New technology has served to empower
consumers The purchasing process now takes across
channels
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Buying Clothes Online or In-Store?
Source: GMI/Mintel
12 11
43
17 1715
11
39
18 17
22
16
36
15
11
0
5
10
15
20
25
30
35
40
45
50
I buy more clothesonline than in-store
I buy around thesame amount of
clothes online andin-store
I buy clothes online,but buy more clothes
in-store
I have browsed forclothes online buthave never bought
I have neverbrowsed for clothes
online
%
2010 2011 2012
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Shops exist because they carry out Functions that Add Value
Pre-select & edit product ranges Provide value-for-money prices Break bulk Provide time & location convenience Hold stock Provide information for customers Provide product support & service Provide credit
Q: do we still need shops for all this?
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Rationale for New Marketing
Fragmented markets Saturated markets – focus on “wants” Communication overload Customers have “wised up” to
traditional techniques – loss of Trust & Relationship factors
Technology developments Cost productivity pressures
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“ Permission Marketing”
Seth Godin (2000)
Direct Marketing
Relationship Marketing
Permission
Marketing
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Brand Usurpers & Brand Terrorists
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Characteristic of New Marketing
Focussed activities Consumer is involved –
“conversations” not “communications”
Search for more credibility & trust Development of Communities Media has greater affinity with
brand values
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New Marketing
Advertising
PR VM
Sales Promotion
Guerrilla Marketing /Ambush Marketing
Viral Marketing
Celebrity Marketing
Cause Related Marketing
Experiential marketing
Scarcity Marketing
Social Media
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Scarcity Marketing
Fast Fashion WIGIG On/offline Outlet stores Limited Editions Pop-up everything Trunk/sample sales Luxury Customization
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Guerrilla MarketingThe use of non-conventional, semi-legal
“ambient media” to increase brand awareness
Fly posting Stencilling Stickers Product placement in “cool”
venues “Freebies” – Levis brand
magnets Demonstrators Laser projections – “Gobos” Event hosting Pirate radio station ads
Gail Porter
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Guerrilla Marketing - Examples
Tomy “Micro Babies”
Ben & Jerry’s
Sloggi
Plaza Shopping Centre
Pilot watches
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Flash Mobs & Ambush Marketing
Hugo Boss @ British Open Golf - Turnbery
Bavaria Beer in South Africa
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Temporary “Pop-Up” Shops
Levi’s
Adidas
Comme des Garcons
Diesel – 55DSL
IKEA
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Pop-ups and brand spaces
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Motorola (Products RED)
Pop up Store –
Chicago
2 weeks only
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Experiential Marketing - Brand Flagships
“ Don’t call it a store – call it and Ad with walls” – Stuart Elliot.
New York Times
Apple
Regent Street
London
““forget the shoes, Prada's forget the shoes, Prada's new store stocks ideas”new store stocks ideas”
NY TimesNY Times
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Cause Related Marketing
Tesco – C f S Monsoon/East – India Body Shop Breakthrough Breast
Cancer – M&S, River Island, Avon, etc
Levi – War Zone Giordano – anti-
suicide Top Shop/Office - MS
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Co-Branding in Fashion
Cause related marketing Celebrity marketing Sponsorship Complementary
products Designers Country of Origin
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Designer Co-Branding in Fashion
Stella McCartney with Adidas
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H&M
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Celebrity Marketing
H & M – David Beckham GAP – Angelica Huston Miss Dior – Natalie Portman Coach – Gwyneth Paltrow Nike – Michael Jordan Mango – Penelope Cruz Burberry – Emma Watson Chanel No 5 – Brad Pitt
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Sponsorship
Top Shop/River Island/ASDA-George New talent – “Re-
Creation” with Dazed & Confused
Designer boutiques Graduate Fashion
Week New Generation
Awards
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Benefits of Co-branding
Differentiation – “cool” – peer reference aspiration. Strong & simple
Branding relates more to emotion & values than to attributes
Positive image creation & recall Brand preference & purchase Price premium Free PR Motivate investors and employees
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Issues in Co-branding
Selection of partner(s) – credibility, availability, exclusivity, popularity, risk
Timing & Control Integrity – partners “live the brand” Transparency Partnership – shared values Mutual benefits Integration of total marketing mix
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Celebrities can let you down
Negative impact on Brand Reputation by association
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Viral Marketing (Social Media Marketing)
The use of a brand’s customers to increase awareness and change attitudes
How fashion spreads – brand leaders early adopters late adopters laggards
Customer types – Promoters (“brand evangelists”), Passively Satisfied, Detractors (“brand vandals”) - Frederick Reichheld
WOM = Word of Mouth – accounts for 67% of new sales (McKinsey)
“The Tipping Point” Malcolm Gladwell
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Customers as Brand Ambassadors
“ Reichheld’s research indicates that there is a strong correlation between a company’s growth rate and the percentage of its customers who are willing to recommend the company to a friend”
The Economist
“The only path to profitable growth may lie in a company’s ability to get its loyal customers to become, in effect, its marketing department”
Frederick Reichheld – Bain & Co
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The Net Promoter Score (Reichheld)
- 5 + 5Detractors Passives
Promoters
Likely to Recommend
Extremely Unlikely Extremely Likely
NPS ( eg +2.76) = Average of Promoters & Detractors
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Net Promoter Score – Boots Example
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Michelle Mone – Brand Evangelist
“I love Montblanc pens. I’ve got more than 30 – I’ve got the highlighters, the fountains pens, the lot. Whenever I’m in an airport I think ‘I must go and get the new Montblanc pen’ It’s my indulgence”
Metro, 13.01.2009
Michelle Mone - Ultimo
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Service Reputation
“ We take those funds that might otherwise be used to shout about our service, and put those funds instead into improving the service. If you do build a great experience, customers tell each other about that. Word of Mouth is very powerful”
Jeff Bezos, CEO Amazon.com.
Business Week, July, 2004
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Nordstrom – US Top Spot 2012
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“Buzzing” – Brand Ambassadors
Bzz Agent – 60,000 volunteer agents
Tremor (P&G) – 240,000 teenagers
Lee Jeans “Truefit” campaign – 1,000 buzz agents
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Purchase Influencers“Mavens” (Gladwell)
Younger generation
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Electronic Viral Marketing
= Social Media Marketing
Beyond E-mail marketing “Social media” is the social
interaction among people in which they create, share or exchange information and ideas in virtual communities and networks
Fastest growing use for the Internet and fastest growing marketing instrument – 67% brands on Instagram
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Digital Marketing Spend 2014
(USA)
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Types of Social Media
Collaborative (wikipedia) Blogs, Microblogs & Vlogs (twitter) Content Communities (YouTube) Social Networking (Facebook) Gaming (Minecraft) Virtual Social Worlds (Second Life) Channel can be Brand Controlled or Externally
Controlled
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International & Local Examples
English speaking world – YouTube, Twitter, Tumblr, Instagram, Facebook, Pinterest, Google +
China - WeChat, Qzone, RenRen Japan – NicoNicoDouga Indonesia – Zorpia India, Brazil – Orkut Russia – Vkontakte France – Skyrock Italy – Badoo Germany – Gutefrage, Xing Denmark – Amino, Arto
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Example – Yoox (Italy) on WeChat (China)
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Emerging markets are heavy users
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Engaging with Social Media is challenging, but effective
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Example – Piperlime (GAP)
August 2014
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Example – Dover Street Market
Comme des Garçons
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Example – Burberry, Shanghai
Burberry used WeChat to launch its new flagship store in Shanghai and A/W 2014 collection
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Objectives & Benefits of Social Media Marketing
Brand awareness, advocacy, engagement, reputation, community building, sales….
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Management of Social Media
- becoming more professional - Gleamfutures
Objectives Planning Skills Control/”rules” Monetize Budgets Evaluation/ROI Personality Community culture
Content Forecasting Customer Insight Resonance & trust IT/”Big Data” Troubleshooting Risk analysis Marketing integration Commitment
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The Flows of New Marketing
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Where will it all End?
Rational Analysis of Management Fads – Remember ECR?
Daniel Staib
GDI, Zurich
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Reading Sue Adkins – Who Cares Wins Mark Schaefer – Social Media Explained Frederick Reichheld – The Ultimate Question &The
Loyalty Effect Alan Mitchell – Right Side Up Jay Levinson – Guerrilla Marketing Seth Godin – Unleashing the Idea Virus & Purple Cow George Silverman – The Secret World of Word of
Mouth Marketing Malcolm Gladwell – The Tipping Point Glen Urban – The Emerging Era of Customer
Advocacy (Sloan Management Review – Winter 2004)
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…….and Good Luck
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Bill Webb
Senior Lecturer - LCF Scholar of Cambridge University Marketing Manager/Director - Jaeger,
Johnson & Johnson and Storehouse Director, Management Horizons Marketing Director - Fitch Retail
Design Director, Conzept International Retail Consulting Career Member of Ebeltoft Group (local
member: Retail Institute Scandinavia-Århus)
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The University of the Arts London
Largest university for design & fashion in Europe Over 20,000 students from more than 130
countries Six colleges with individual specialisms London College of Fashion School of Science and
(retail) Management Member of the Association of Business Schools Member of The European Retail Academy Centres for management consulting and
industry training Extensive research into fashion and retail
sectors
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Ebeltoft Group
Ebeltoft Group is a worldwide alliance of retail consultancies with members in numerous mature and emerging retail markets.
Responding to our client´s demand and market globalization, we offer pragmatic retail consulting services and conduct global insight research.
We are unique in our ability to combine global retail expertise with deep local insight and turning this into innovative and practical solutions.
North America: United States and Canada
Latin America: Brazil and Mexico
Europe: Denmark, France, Germany, Italy, Netherlands, Portugal, Romania, Spain, Turkey and United Kingdom. And Switzerland.
Asia Pacific: Australia, China, Singapore and India
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Ebeltoft Group Bill Webb [email protected] [email protected] T: +44 (0)7768 453169 www.ebeltoftgroup.com Facebook & Linkedin