Forget Kotler.

The 20 new rules of marketing.

Two ways to look at the future: blue-sky. And extend key parts of the present. Gibson: The futures already here. Its just not evenly distributed.

We all grew up with Kotlers 4Ps.

Product.
Pricing. Placement. Promotion.

These date back to 1959. Real-time Brand Management Lets see whats happening today.

Product: Neurons beat atoms

+ = + =

Pricing: Variability beats fixed.

>
>

Placement: Everywhere beats some places

Promotion: Less beats more

Its time to let go of the 4Ps.

Theyre almost meaningless. And where theyre not, theyre useless.

Things have changed. Real-time Brand Management So what are the new rules?

1. Digital is not niche anymore. It is mainstream. Even in India.

Heres the current picture we see

Desktop Net users: 85m

Mobile Net users: 80m

Indian net users: 135m Indian C&S homes: 105m Star Plus viewership: 25m ToI national circulation: 7m

Critically, Indian internet users have already crossed Cable & Satellite TV households. Soon social media users will, too.
160m 150m

Net users

140m
130m 120m 110m 100m 90m 80m 70m 60m 50m 40m SM users C&S hh

30m 20m 10m

2007 2008 2009 2010 2011 2012 2013

And heres the picture we see for 2014

Desktop Net users: 150m

Mobile Net users: 225m

Indian Net users: 300m

Indian C&S homes: 140m Star Plus viewership (?): 35m ToI national circulation (?):10m

Arguably, digital is the medium where properties have the largest reach in India. Larger than any TV channel or print pub.

No TV or print property matches these digital properties in reach in India.

Property Viewers/mth Google 105m Facebook 38m Yahoo 28m YouTube 23m Blogspot 16m Wikipedia 12m Rediff 12m Orkut 11m IPL on TV (SEC A/B) 6m StarPlus (SEC A/B) 5m Views/mth 5 10 7 4 3 3 5 5 5 3 Time/view 8 min 25 min 12 min 18 min 7 min 9 min 14 min 10 min 24min 13min

2. Its not just the users of digital that beat others. But the usage of digital does too.

More than the rise in users the story is the rise in usage (IMRB/IAMAI)

2 hrs 15 mins a day rivals or exceeds TV consumption.

Anybody who tells you digital is a small and unremarkable niche or a 2% medium is either blind, ignorant, sells TV or Print or all of the above.

3. Users and usage are great. But the cost often free is the best bit.

No TV or print property matches these digital properties in reach in India. Or cost.

Property Google Facebook Yahoo YouTube Blogspot Wikipedia Rediff Orkut IPL (SEC A/B) Star+ (SEC A/B) Viewers/mth 100m 38m 28m 23m 16m 12m 12m 11m 6m 5m Views/mth 5 10 7 4 3 3 5 5 5 3 Time/view 8 min 25 min 12 min 18 min 7 min 9 min 14 min 10 min 24min 13min CPT (Rs.) 0-50 0-30 100 0-125 0-50 0 80 0-30 150 100

If you want to reach the mass in India, conventional wisdom says you buy ads on IPL on TV. A match rates 3.5% TRP. Thats 1m SEC A/B homes. Or 2.5m people. At Rs. 1 lakh per ad-second

Facebook alone delivers 6.75m (mostly SEC A/B) daily. For as little as free.

4. Social is the fastestgrowing digital medium.

Regular portal users: Average (+12%)

Portal usage has stagnated at same share, or lagged behind growth.

The growth isnt from traditional digital media.

Social network users: Blogspot (+196%)

Social network users: YouTube(+219%)

Social network users: LinkedIn (+308%)

Social network users: Facebook (+615%)

Social has taken over. Average (+250%)

5. The best statistic about digital isnt a statistic. Its the most trusted medium.

If social media buzz is not managed well, reputations built over lifetimes can shatter in days

If social media buzz is not managed well, reputations built over lifetimes can shatter in days

Shattered reputations can cost billions

Or even topple governments: Arab Spring

6. Digital lets you side-step publishers and become one yourself.

Your own newspaper / TV channel with a opt-in viewership of millions. For free.

7. Competing on digital doesnt need large budgets. Digital helps Davids beat Goliaths.

Once a brand with a Rs. 20 cr ad budget feared another with a Rs. 200 cr ad budget.

Once a brand with a Rs. 20 cr ad budget feared another with a Rs. 200 cr ad budget. No longer.
Media budgets dont make a big difference.
Now its a fight between people or creative budgets. Rs. 25k a month? Rs. 2.5l a month? Rs. 25 l a month?

Is your story worth repeating? Are you being remark-worthy?

8. Media is vacating editorial to become marketing. Marketing can now take on editorial leadership.

Its not about advertising but your own editorial.

Its not about advertising but your own editorial.

9. Number of fans is irrelevant. Your edge rank drives relevance. Edge rank is driven by engagement. Measure engagement.

Edge rank in action: Updates can reach no one.

Getting a fan is a waste of money if you dont get engagement.

A note on Facebook engagement metrics

Unprompted Engagement: E1: Prompted Engagement: E2: Passive Engagement: E3: 1000+ 2000+ 5000+

Performance metrics, engagement levels

E1 scores

E2, E3 scores

10. Campaigns used to be built in months. Now they need to be built in minutes.

The marketing managers job is now very different.

3 years versus 3 months

3 months versus 3 weeks.

3 days versus 3 hours

Political ads? Lawyers ads?

Flipkart? Landmark?

11. The whole process needs to change: 1st step.

It stars with research or active listening

LISTEN

This brand is talked about more than 7,000 times a day. Others twice as much.

Google Alerts is not tracking.

That tracks <0.5% of mentions of your brand typically.

Its not technology.

Its not services. Its both.

12. The new process continues with immediate action.

LISTEN

REACT

13. After listening and reaction comes the analytics and planning.

PLAN

LISTEN

REACT

Analyse and report trends

Sentiment analysis

Competition tracking

Issues faced by Mobile Services Customers

Figures for September reflect overall trend

14. After listening, reacting, planning comes the proaction

PLAN

LISTEN

REACT

PRO-ACT

Social Media properties created

On Twitter..

Reactions to our tweets!

15. The process continues, relentlessly. 7 days a week.

PLAN

LISTEN

REACT

PRO-ACT

Some brand customers are more active on weekends. Does that mean we wont talk to them because we dont work weekends?

Pinstorm creative teams now work in shifts. Some day others will, too.

16. The big change is not in how agencies work but how marketers need to work.

Looking at the process again

PLAN

LISTEN

REACT

PRO-ACT

Customer Service

Corporate Communications, Brand Marketing

Brand Marketing, Product Marketing, Employer branding

PLAN

LISTEN

REACT

PRO-ACT

Customer Service

Corporate Communications, Brand Marketing

Brand Marketing, Product Marketing, Employer branding

What happens if youre not coordinated?

Its easy to get it wrong in digital: short-term thinking, non-integrated work

Its easy to get it wrong in digital:

focusing on SMM & not ORM

Its easy to get it wrong in digital:

different teams on ORM, SMM

Its easy to get it wrong in digital:

look, feel and action that is different everywhere

How will you re-organise?

17. Its about training people to speak like you do.

Find and define your voice and tone of voice.

18. Its not about being a generalist. Or a specialist. But about being a multispecialty agency.

Digital is increasingly not about specialization. But about multi-specialization.

Directory listing SVO SEM

SMM

Site/SEO
ORM E-com Optimisation Online Evangelist Mgt

Comp. Track

The era of the specialist is over.

Pinstorm started as a pure SEM firm 8 yrs ago. Now none exist. No pure-SEO, pure-display, pure-site dev firms exist any more either.
Todays pure-social firms will disappear too.

Multi-specialists will survive.

19. You need to map out an entirely new set of channels or evangelists.

Database of 3,500+: Essential to building bespoke evangelist lists

20. The new book on the rules of marketing is yet to be written. Itll take people, technology and boldness to create this future. Partner with a coexplorer.

mahesh@pinstorm.com
@maheshmurthy +91 98922 49969