Will marketing evolve from fiend to friend?

Let’s start with a possibly over-critical view of marketing today, to emphasise the problem that I think needs solved.

Marketing helps to make us aware of new products and services we might want to buy, and provides some well paid jobs. That’s the good side. But marketing saps a lot of money out of the system, skimming off money as it helps move it around – like banking, or car parking fees for shoppers, without giving much back to GDP. It helps companies sell things, but adds costs to the customer that could have been spent on other products and services. We basically pay companies to tell us to buy their products. Of that money, marketers spend far too high a proportion on advertising, which is basically the lazy marketing option. They waste our time as we watch TV, cold call us, send nuisance texts and automated calls, fill our data quotas with video ads, delay downloads, force installation of applications to block them, which all requires extra computer power and maintenance. In short, we pay them to waste a significant proportion of our precious lifetime as well as our money. In fact the financial cost added to every product is dwarfed by the costs of the extra time consumed. All the extra energy used to broadcast ads on TV or the net or the extra paper and bleach and ink to put them in magazines has an enormous environmental impact too. Advertising consumes a huge amount of resources but on a per-advert basis is very ineffective at making us buy. Google makes a fortune from UK companies for its adverts but by diverting the ad sales through Ireland, manages to avoid paying UK tax, therefore pulling off an excellent vampire impression, dressing stylish and looking cool while sucking the lifeblood from industry. By using up so much air time and online bandwidth advertising directly impedes productive uses. On current form, because of excessive reliance on the lazy option, marketers are more fiend than friend.

Marketing has almost become a one-tool profession, too willing to annoy a lot of people to get a few sales. Other components of marketing such as launch events and trade shows are effective and very effectively target those who are likely to be interested, but advertising dwarfs them. Surely there has to be a better way. How do we get marketing to go from fiend to friend?

There is. Pull marketing (if done properly) gives people what they ask for, in the right form, on the right platform, when they ask for it, not what they don’t want, in their faces, all the time. Marketing will evolve from push to pull. However much the marketing industry and advertisers don’t want it to go that way, the potential value for a given spend via pull marketing is so much higher that it is inevitable. Think about it. Only an idiot would employ someone to stand in a doorway blocking the entrance, jumping up and down screaming messages at customers that are actually trying to squeeze past into the store to spend money. That is the difference between push and pull. Unfortunately for marketers, pull needs different skills, so if they don’t have them, they need to retrain or they will eventually be made redundant. They can hide and massage performance figures for a while to hide the ineffectiveness of throwing money down the drain on advertising, but not forever.

People want to know what is available that might be of interest to them. They also want clues to help filter the vast number of potential products down to a manageable choice. They don’t want silence from suppliers, but appropriate and timely information. Branding is aimed at this of course. So is PR. Marketing should be better integrated into ongoing background brand management and public relations, with excellent web sites to provide information when people want it. In that way, people will think of them when they want something, and be able to find the most appropriate product easily.

The task of providing a good website is often allocated to other groups in the company. This is a mistake. The website needs to be extremely well integrated with marketing, PR and brand. In many companies, only the brand people get a strong influence. A potential customer coming to the site from any angle of approach should be faced with extremely easy navigation, immersed in the values and styles they already associate with that brand and assisted as far as possible in what they are trying to do. They should not be bombarded with waves of ads, popups and guano that prevents them from finding what they want. Even if a customer wants to cancel a service, it should be very easy to do so. They are far more likely to come back than if they had to spend ages finding their way through a maze and over barriers to do so.

One way of keeping customers aware without ramming branding message down their throats every day is to integrate into target communities as useful members rather than just seeing them as potential sales. People will always favour their friends, so actually being a friend is a good idea. That shouldn’t be any great revelation. Big companies recognise their relative inability to engage with local communities across their range and harness an army of resellers who can better achieve this local involvement. Social networking provides a good alternative channel to local resellers, but not by using the wasteful and annoying blanket broadcasting that we usually see. It needs to be focused. A reseller wouldn’t waste time cold calling every resident in an area just in case. They focus efforts on targets that are likely to buy. They do the customer’s work for them, identifying those for whom a product is suited and then making contact. Being friends also means giving genuine discounts or exclusive deals to regular customers. It doesn’t mean using them to palm off products that you can’t shift through normal channels.

Lifestyle is an easy route too. Everyone lives differently, but many people reveal their lifestyles via magazines or newspapers that they buy, the places they visit, the things they do, and indeed the products and services they buy. These are obviously high value marketing hooks. People like their existing opinions and attitudes to be reaffirmed. Letting them know they have made a good decision buying your product makes them feel better about the spend. It takes skill to package such affirming in a way that it doesn’t come across like the lazy ‘congratulations on buying this’. Providing favourable reviews, news links and ongoing support would soon become spam if used too much, but sparingly and with appropriate products, it can be useful.

Handled properly, excluding employees with deep staff discounts, the most likely person to buy is someone who has bought from you before, then in second place, someone who has bought equivalent products from a competitor, then someone who has a strong proven interest in that field. Much further away is someone with a casual unspecified interest in the area who just happens to have chosen a particular keyword in a search for any reason whatsoever, and in the very far distance, a total stranger. Yet those last two are where most advertising revenue is spent.

Magazines are an excellent platform to reach targeted groups, but they still need the right approach. An advert in a magazine is more likely to be read than one in a newspaper, but is still likely to be ignored. An article by a trusted writer will be read, and if it mentions your product favourably, the trust in the writer transfers to your product. If they already have it, it builds the feel-good factor. Strongly themed magazines form an important part of the self-selected lifestyle choice, especially since people can only buy a few each month, and this trust and identification with its writers can go far beyond the magazine itself, into their social media and blogs, and soon, into their augmented reality as they wander around. As social media continues to expand into the high street with location-based services, that relationship will grow and winning the favour and approval of writers will become a more important part of marketing. Care is needed of course. Writers will not want to appear partial since that would compromise their trust and their following, but providing exclusive information to them and being honest about defects wins support without threatening impartiality.

As we move into the era of augmented reality, companies are already discovering how to use precise location. Today, location doesn’t just rely on GPS or mobile signal strengths. Image recognition can identify a customer and also exactly where they are, what gestures they are making, even the expression on their face. From those and various other contributing factors is evolving the huge technology field called context. Context is very important in knowing whether to give marketing information at all and if so, how and what. It helps make sure that efforts are spent to make customers want to buy rather then to make them avoid you. A family might be interested in meal vouchers when lunchtime is creeping up. If they’ve just eaten (and paid), the same vouchers may be very unwelcome. If I have just bought a car, the last thing I want is proof that I could have got it or a better one cheaper or had some extras thrown in!

As context technology develops in parallel with positioning, image recognition and augmented reality technology, we will see the air around us essentially digitised, context-sensitive messages pinned to every cubic millimetre of the air. Digital air, or virtual air, will be a major new marketing platform that will offer hugely more potential and value than advertising, with far less cost and customer annoyance. It also offers the potential to bombard customers with unwelcome blanket ads too, so it will be easy for the industry to shoot itself in the foot. Not just easy, but probably inevitable in an industry with some players who think it is smart to deliberately offend people. If that happens, spam filters will block such ads and the potential will be damaged irreparably for everyone.

Word of mouth is one of the best forms of marketing. It is free and natural and goes to companies who provide good products or services. In its simplest form, it is like ebay’s  reputation score on Facebook’s ‘like’ button. At a higher detail level, companies such as Trip Advisor make good income by harnessing the desire people have to tell others about their experiences, good or bad. People will often take guidance from strangers when there is no better alternative, and even though everyone knows some reviews are by friends, competitors or by people who have never even had any experience of the supplier, if there are a lot of strangers giving reviews, the assumed probability is that most will be telling the truth and any bias will be reduced.

Even so, these sites don’t reach the same level of trust that people have in their friends and colleagues. We should expect that to be harnessed far more in the next few years. Innovative Amazon is among the leaders as always, trying to harness this with its ‘I just bought’ social network button. However, I’m not at all interested what my friends have bought. I am far more interested in whether it turned out to be a good or a bad buy, and then only if I am looking for something similar. I certainly don’t want spam every time anyone I know buys anything. A service that lets people review stuff and then allows people to see the reviews, sorted according to social proximity of the reviewer would be far better. If such a site already exists, as it may well do, I am not yet exposed to it, so it has its own marketing to do. So what is needed would be a site like Trip Advisor, but with a social proximity selector that strips away reviews from friends and competitors, restricts to those who have actually purchased, and then sorted according to social proximity with the reader. By linking to your other social network sites, and identifying your friends and colleagues, it would be able to show you any reviews from that group.

Unfortunately, we already see a rising barrier to this kind of development. Too often, companies want access to our social networks to do push marketing to a broader community of relevance, to make personalized ads, and essentially to use our contacts to abuse us even more efficiently. That is an industry destroying its own future prospects. By misusing the potential to do its push marketing today, it is destroying the potential to do far more effective pull marketing tomorrow. It gets a tiny benefit today at the expense of a huge one tomorrow. Most of us have already become wary of allowing access to our contacts lists because we already assume for good reason that they will be abused. Spam filters quickly remove any short-term benefit they may have won, and prevent future mutual benefit.

Most of these areas of future potential share the same threat of destruction by the very industry that can benefit most. Marketing will move from push to pull whether marketers want it to or not. By trying to force the worst practices from the push era onto the areas that offer the best potential in the pull era, they will only ensure that marketing will remain an underachiever. Sadly, a few players today can and probably will ruin it for many tomorrow. The result is that marketers will marginalize themselves, making themselves relatively powerless in a world where they could have been powerful.

People will find what they want, and what their friends think of things, but they will do so via sites and intermediary companies who respect them, respect their privacy, and give them what they want, not what they try hard to avoid getting, not via push marketers. Pull marketing done well will go to new players who have no time for the old practices and values, to people who want to improve the lives of others by helping them make the right purchasing decisions, not trying to make them buy the wrong ones.  The likely mechanism for this is use of social networking sites that have a different business model than selling adverts – perhaps even ones with the primary purpose of helping the community and improving quality of life rather than making money.

Marketing will evolve from fiend to friend. Hopefully it will be by the fiends reforming, rather than simply dying.

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3 responses to “Will marketing evolve from fiend to friend?

  1. Hi Ian, Great post.

    I’m curious to know how you see the impact of pull marketing on competition – if the customer only pulls information on what they know about, how do you launch a new concept/competitor?

    Thanks

    Ian

    • Thanks Ian, good question. I hinted at this, but I guess I should do a bit more than just hint, and there are too many threads to answer in a short reply, so I’ll write a proper blog answering this question in the next day or two. Bear with me.

  2. Pingback: Pull marketing and new product launches | The more accurate guide to the future

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