11 trends in marketing services for 2011

In December was invited by Simone Puterman, Editor at Bizcommunity in South Africa to contribute to their Marketing & Media 2011 Industry Trends feature.

With the slow emergence from Global Financial Crisis, there is a focus on the role of marketing to drive sales performance, which is impacting not only on how marketing needs to be structured and their approach to the market and the consumer, but also in the way they engage with their third party marketing services providers.

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1. Marketing is about mass customisation

2. Data is King, but insights will be God

3. Increasingly a world of media, channel and audience fragmentation

4. “Glocal” will become mainstream

5. Customer experience surpasses customer awareness

6. Small ideas will become the big idea

7. All will be digital but not all will be on-line

8. Aligning to the customer is essential

9. Marketing will continue to be held more accountable

10. Remuneration for marketing service providers (agencies) will be results based or not

11. Production will continue to be under commodity pressure

1. Marketing is about mass customisation

There are market segments, and then segments within segments within segments within segments down to the individual. Technology now provides us with access to not only identify these segments within segments within segments, but to be able to customise content, messages and communication with each of these to a personal level. It is this mass customisation that builds brands and ultimately sales.

2. Data is King, but insights will be God

To make mass customisation possible requires “knowing” the segments and individuals, which requires data. But data alone is just the tool. The real value is in the insights derived from this data. Much like any tool, the value comes from the skill of the tradesperson using it. Therefore insights are the holy grail of data.

3. Increasingly a world of media, channel and audience fragmentation

Much has been written about the fragmentation of media, but the fragmentation in audience segments has seen a corresponding increase in specialist service providers with marketers now engaging with multiple disciplines and multiple segments and multiple markets, resulting in increased complexity, which continues to increase.

4. Glocal will become mainstream

Global or local communication strategies? The fact is it is now both – Glocal. No local brand can be local only with the Internet providing a global audience to any brand with a on-line presence. But likewise Global brands have found that one size does not fit all in a mass customised world, with global brands requiring localised customisation.

5. Customer experience surpasses customer awareness

White the traditional role of advertising was to drive awareness and consideration, the customers experience of the brand builds a deeper relationship with the brand. The interactive environment creates opportunities for customers to experience the brand and share that experience with others as an advocate for the brand.

6. Small ideas will become the big idea

Many marketers are often fixated on the “big idea” but in the world of mass customisation the big idea is the brand strategy and the advertising execution is becoming s succession of small ideas aligned to the big band idea but customised to the various and increasingly fragmented customer segments down to the ultimate one-to-one conversation.

7. All will be digital but not all will be on-line

Many marketers still think of digital as the Internet, but digital technology has impacted on every level of communications. Digital out of home, digital television, mobile, APIs are all creating new ways of consumers to access information, control flow and content and contribute to the conversation. The same technology that has enabled the possible of mass customisation has also added to the complexity of the same process providing increasing numbers of channels for interacting with customers.

8. Aligning to the customer is essential

In the face of this increasing fragmentation, the greatest challenge for many organisations is how to align to the customer. But in the face of siloed business units, multiple geographic markets, cultural differences, increasingly specialised and diverse service providers, the ability for organisation and brands to be customer-centric is challenged. Add to this the fragmentation of the customer segments and you can see why it is essential for marketing to align their activities to the customer.

9. Marketing will continue to be held more accountable

Return on investment is the catch cry of marketing accountability, but sales results alone is a short-term business view of the marketing investment. A customer centric company should me measuring ROI based on metrics such as share of wallet and lifetime customer value. Marketing is about creating, building and developing the customer relationships that move beyond simple initial acquisition and looks at the longer-term value of that customer to the organisation.

10. Remuneration for marketing service providers (agencies) will be results based or not

Just as marketing is more accountable than ever before, their suppliers and agencies are also being called to account. The issue is that in many cases the value of their contribution is often ill-defined and obscured. In this case the agency is seen as a cost to business and the pressure to reduce this cost continues to be applied. The marketing service providers and agencies that can prove their value will move to a results based remuneration where they increasingly share in the financial value created.

11. Production will continue to be under commodity pressure

In a digital world, production of marketing content is converging, yet the service providers are fragmenting with an increased number of specialist providers. Companies, which have identified this trend, are increasingly looking for ways to consolidate the production function to achieve economies of scale on a local, regional and global basis.

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About Darren Woolley

Darren is called a Pitch Doctor, Negotiator, Problem Solver, Founder & Global CEO of TrinityP3 - Strategic Marketing Management Consultants and a founding member of the Marketing FIRST Forum. He is also an Ex-scientist, Ex-Creative Director and a father of three. And in his spare time he sleeps. Darren's Bio Here Email: darren@trinityp3.com
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2 Responses to 11 trends in marketing services for 2011

  1. For an ad agency perspective I was sent this link by Katharine Schafli in our Hong Kong office – http://www.bluefocusmarketing.com/blog/2010/12/06

  2. Joe Kelly says:

    Insightful , valuable and accountable.
    trust all is well….it has been a long time!

Comments are closed.