2. TIO 17 February 2015 Amsterdam dr. Albert Benschop Virtual Marketing – Permission instead of interruption – www.sociosite.net

3. Menu of the Day 1.Socializing vs. Commercializing  Undesired Commerce 2.Traditional marketing  Interruption Marketing (IM) 3.Social media marketing  Permission Marketing (PM) 4.Viral marketing: using social networks, finding Alpha users 5.Limits of PM: conditions & abuse of permission

4. Who I am & what I do nSociologist University of A’dam nCybersociology –New discipline –Internet as instrument & object of research n.net Social Science Information System n.org Studies on the peculiarities of cyberspace “Cyberwar has already started, and your computer takes part in it.”

5. How many marketing messages do we see in a day? In a world of mass-marketing we are consistently overloaded with adverts that compete for our limited time & attention span. nEstimation: range from 3.000 to 20.000 ( Yankelvich Research ) They counted every time you pass by a label in a grocery store, all the ads in your mailbox whether you see them or not, the label on everything you wear, etc. nWe see at least 247 images per day but probably don’t notice half of them even though we’ve been exposed ( Consumerreports ) When messages are in reasonable proximity for you to see, it doesn’t mean you saw them. Our brains can’t process that many messages. nOverflow of interruptions  People will disregard them, tune out, and refuse to respond.

6. No Second Life for Coca Cola As soon as Coca Cola discovered Second Life it tried to pollute this 3-D virtual world in a massive advertisement campaign which shocked the inhabitants. Cola Vending Machines on every virtual corner For Cola ads nothing is sacred Virtual Thirst: Control+Alt+Refresh How happy can you be in your ideal imagined society Silicone Cola Avenue Who likes to drink virtual coca cola? In virtual worlds we don’t drink at all. There’s no digital liquid to swallow.

7. Virtual marketing nTrying to sell something without direct contact  Trade without Touch nBuilding online contact with people you can reach via internet & mobile networks  Create a feeling of proximity, a sense of presence nTraditional orientation on social-statistic target groups replaced by targeting individuals  From element in a demographic category to real persons (“one-to-one”) nCrucial factor: disposition on detailed and actual info on specific persons  Acquire “Big Data”

8. Viral Marketing (1) nMarketing techniques that use pre-existing social networking services to generate increases in brand awareness or product sales through self- replicating viral processes. nDistribution: by word of mouth or enhanced by network effects of internet & mobile communication.

9. Viral Marketing (1) nMarketing techniques that use pre-existing social networking services to generate increases in brand awareness or product sales through self- replicating viral processes. –Similar to the spread of viral diseases or computer viruses. nDistribution: by word of mouth or enhanced by network effects of internet & mobile communication. –Viral advertising is personal and, while coming from an identified sponsor, it does not mean businesses pay for its distribution. –Most viral ads circulating online are ads paid by a sponsor company, or launched on their own platform (company webpage or social media profile) or on social media websites such as YouTube. –Consumers receive the page link from a social media network or copy the entire ad from a website and pass it along through e-mail or posting it on a blog, webpage or social media profile. Notitie

10. Viral Marketing (2) nViral messages can utilize an endless amount of potential forms & vehicles for transmission, including mobile devices. –Forms of viral marketing: video clips, interactive Flash games, advergames, ebooks, brandable software, images, text messages, email messages, or web pages, or tweets. –Transmission vehicles: pass-along based, incentive based, trendy based, and undercover based. Ultimate goal of viral marketers is to create viral messages that appeal to individuals with a high social networking potential (SNP) —> Alpha users

11. Viral Marketing (2) nViral messages can utilize an endless amount of potential forms & vehicles for transmission, including mobile devices. –Forms of viral marketing: video clips, interactive Flash games, advergames, ebooks, brandable software, images, text messages, email messages, web pages, or tweets. –Transmission vehicles: pass-along based, incentive based, trendy based, and undercover based. nUltimate goal of viral marketers is to create viral messages that appeal to individuals with a high social networking potential (SNP) –SNPs present and spread a viral message at high speed among a relatively large domain of friends, colleagues and acquaintances. –Special algorithms to identify people with a high SNP. –Alpha users: focal members of any viral campaign; the most powerful hubs. Notitie

12. The promises of viral marketing

13. Peculiarities of virtual social networks nEssence of virtual social networks –Based on mutual trust and assistance –Friendly & supportive atmosphere –Feeling of community – safety zone nPersonal, friendly relations may have an `economic’ dimension, but have not been created to earn money. nManipulation of this utilitarian dimension is a precarious affair: before you know it you trespass the border of negative responses. nBuilding a successful virtual network requires more than a brief flirtation with potential customers. Unsolicited / Unwanted Advertising Undesired Commercialities

14. Interruption vs. Permission Marketing nInterruption Marketing Divert the customer’s attention from whatever they are doing –A television advert that cuts into a TV show or film –An internet pop-up that interferes with reading a website –Spam in your e-mail box nPermission marketing Instead of interrupting customers with unrequested information, permission marketing aims to sell goods and services only when the prospect gives consent in advance to receive the marketing information Example Opt-in email: internet users sign-up (give permission) to receive information about a certain product or a service. Benefits More effective  the potential client is more interested in information that was requested in advance. More cost-efficient  businesses only need to target consumers who have expressed an interest in their product. “Turning Strangers into Friends and Friends into Customers” [Seth Godin]

15. Elements of Permission Marketing nAnticipated People anticipate service/product information from company. nPersonal Marketing information explicitly relates to customer. nRelevant Consumer is interested in marketing information. Marketing strategies should be based on these principles Interruption marketing [IM] is a competition to win people’s attention. Permission Marketing [PM] offers an opportunity for the consumers to agree to be marketed to. –By only targeting volunteers, PM assures that consumers pay more attention to marketing message. –PM encourages consumers to engage in a long-standing, cooperative marketing campaign.

16. Five Levels of permission marketing From the lowest to the highest effectiveness 1.Situational Permission Prospect permits the business to come into contact by providing their personal information. 2.Brand Trust Prospect permits the business to continue supplying their needs. 3.Personal Relationship Prospect’s permission is granted because of a personal relationship with someone in the provider organization. 4.Points Permission Customer agrees to receive goods or services and allows the business to collect their personal data. They are provided with incentives, such as exchangeable points or an opportunity to earn a prize. 5.Intravenous Permission Supplier has taken over supply function for a specific good or a service; customer is completely dependent on the business. Examples: subscriptions on magazines, cable TV, and telephone services are automatic. At each successive level of the permission framework, the business achieves a higher efficiency state, with a decrease in the marketing cost. Notitie

17. Examples of Permission Marketing Many firms and companies have established permission-based marketing agencies, campaigns, and platforms. It contributed to the development and expansion of the social media. They heavily utilizes the methods of permission marketing: ‘friending’, ‘liking’, and ‘following’. nFacebook: Prime example – whether it is to post, to share, or to amplify, the marketer would have to send a friend request (or a permission) to the potential prospects. nHuffington Post: An American online news aggregator and blog which offers original content including the areas of politics, business, entertainment, environment, technology, etc. HP has a clear permission marketing-based approach: readers are required to register on the site using their social media (Facebook, Twitter, etc). The registration implies that readers have given the permission for HP to send them with marketing information, such as their newsletters. nYouTube: Many firms utilizes it as part of their social-media marketing strategy to promote their products and services. Firms specifically make use of the “subscribing” feature to establish a permission-based relationship with their customers. Subscription implies that viewers give permission for the business to market them with updated information, campaign, etc.

18. Benefits of Permission Marketing 1.Cost Efficient PM employs low cost online tools (social media, search engine optimization, e-mails, etc.) By only marketing to consumers who have expressed an interest, businesses can lower their marketing costs. 2.High Conversion Rate As the targeting audience are those who has expressed an interest to the product, it is easier to convert the leads into sales. 3.Personalization PM allows businesses to run personalized campaigns. Target specific audiences according to their age, gender, geographical location, etc. 4.Establish Long-Term Relationships with the Customer Through the usage of social media and e-mails, businesses can interact and build long-term relationships with the customers. 5.Maintains Marketing Reputation PM only sends information to those who are anticipating the information. Therefore, prospects who receive the information do not feel discomfort (they are not bombarded with marketing messages).

19. Limitations of PM nParadox = PM is inevitably initiated with IM. To develop a permission-based relationship with a prospect, the very first step is always in the form of traditional marketing, where the marketer has to win the prospect’s attention. nPermission is not enough Idea is not that all you need to do is get people to agree to receive your e-mail (to "opt-in") and then you can market to them happily ever after.  Abuse of Permission.

20. Misusing Permission Marketing A company hardly pays any money to bombard consumers with updates, sales pitches, product news, special offers, items of interest, press releases, messages from the president -- just about anything. nPermission to do what? nRelevance nTiming Reassure customers that you are not going to sell their names to anyone else. Dissatisfied Customer

21. Misusing PM It costs a company almost nothing to bombard consumers with updates, sales pitches, product news, special offers, items of interest, press releases, messages from the president -- just about anything? nPermission to do what? Permission shouldn’t be abused. It should be limited to the specific information that the individual has agreed to receive. And it should be carefully nurtured, so that a trusting relationship will grow. Yes, I did give you permission, but I don’t recall giving you carte blanche. nRelevance When a consumer sees a TV commercial that’s not relevant to them, they just turn it off. When they receive direct mail that’s untargeted or just uninteresting, they simply throw it away. nTiming Although we’ve never actually discussed it, my wife has granted me de facto ‘permission’ to kiss her whenever I like. So the other day, I sneaked up behind her while she was working on the computer, and kissed her gently and sweetly on her neck. She leaped up as if she had been shot. “Not now!” she cried. Reassure your customers that you are not going to sell their names to anyone else.

22.  When you break faith in an intimate relationship it means more than the loss of a customer.  It may mean you're making an enemy for life, because the end of an intimate relationship is called a divorce.  If you're going to be intimate with your customer, make very sure you satisfy them completely. Biggest Blunders in Marketing  Cola advertisement in Second Life Dissatisfied Customer The goal of PM is to build a relationship with your client.

23. Now the work has been completed….