Today’s theme for Cannes was centered around China and mobile marketing innovation.
Boosting Consumption in China
I started my day learning about China with John Anthony Quelch (CBE) a Professor of Business Administration at Harvard Business School. He also holds a post as fellow of the Harvard China Fund and is a member of the Harvard China Advisory Board. His research focuses on global business strategy, and has spent a number of years living and working in China.
In our session Mr. Quelch presented the key strategy points needed to structure effective marketing and communication plans to penetrate the Chinese market. The main discussion points were:
I. Eight things you must know about China
1. Huge population that moves around alot
2. Connections are critical to success
3. Consumption of brands signals social status
4. Vast differences in buying power
5. 10% of population controls 87% of the wealth
6. Ethnic and language diversity
7. China has urban and rural areas
8. Findings in McKinsey’s 22 Regions Research on China (see below)
II. Consumption is Fun
1. Forbidden fruit-They like the things they cannot have
2. Economic trigger point
3. Nine hours shopping per week
4. But savings rate remains high
III. Value is Key
1. Consumers are price sensitive
2. Shop multiple channels
3. Transaction vs relationships
4. Online buying groups
5. Promotions and deal
IV. Brands are important
2. Signal status
3. Loyalty ephemeral
4. Prefer Foreign vs local
V. But Trust Is Low
1. Brands are young
2. Business trust<government
3. Ads draw skepticism
4. Credible celebrities
5. Word of mouth
6. Social networking
VI. Digital Media Are Crucial
1. Social Media, Micro-blogs
2. E-commerce reaches beyond retail
3. 4,000 online group buying websites
VII. Women are almost equal
1. Communist legacy
2. Educated ambitious
VIII. Going to market
Every Moment is Mobile Sponsored by
MOBILE MARKETING ASSOCIATION
This forum discussed the power and potential of mobile marketing as a vehicle of creativity and engagement. The mobile platform allows for advertisers to advertise to their customers at relevant times.
The panel consisted of Sheryl Daija (Chief Strategy Officer of Mobile Marketing Association), Brent Poer (President of LiquidThread, NA), Frank Voris (CEO of Vivaki) and Brian Cooley (Editor at Large, CNET).
One of the bigger takeaways from this forum is that “our customers are our partners now. They help us promote.” As advertisers we can no longer dictate to the audience what they want to see or force them to like our product. If we are doing our jobs properly, they will help us grow our brand.
With mobile marketing, the target consumers are Millennials. For this generation their first screen is their mobile screen. Millennials like to look at everything in list. Twitter is their newsfeed, and Facebook is how they stalk others. Branded entertainment is one of the ways to target them on the mobile platform.
There are several ways to use mobile marketing with apps, mobile web, display, text, and email. There is no one size fits all for mobile marketing. It really depends on what your marketing objective is.
Marketing Form @marketing2020B
Hosted by Effective Brands, the Marketing 2020 seminar discussed the future of brands, the marketing organization and how to evolve client agency collaboration to get the greatest creativity.
There were three speakers Marc de Swaan Arons (Co-Founder of Effective Brands), Sucheta Govil (Global Head of Marketing, Decorative Paints Business) and Kevin Burke (CMO @Visa).
Marc de Swaan Arons, Founder Effective Brands
2.1 million ppl have marketing in there title
923,000 active marketers
100,000 marketing leaders
How are marketers are being judged in their work?
#1 Business growth
#3 Brand health
“Marketing works closely with the CEO to grow business”
“Marketing approves large growth projects”
What separates winners from loosers?
Overperformers are thinking more about big data and they integrate it into the way they work.
A majority of marketers feel that big data and creativity go hand and hand.
McCormick had a campaign where they created a spice profile for consumers and sent them recipes based on it. This was a creative idea that drove share growth.
Its about purpose. Brands, everything else being the same its about steping up and saying you can make a difference.
When people believe you are doing something well you get the earned media.
Its about big data, yes, but it is also about big ideas…thats when you get the big growth!
Consistency across touch-points has more success. Those who are more successful, work with more companies (agencies) and collaborate with more people.
Sucheta Govil, Global head of marketing for “Let’s Colour”
“Color the world” campaign
Check out the website link below. The “Color the World” campaign is a great example of a brand carrying about the community around them doing something about it.
For the “Color Your World” campaign this company simply brighten up the lives of others by giving them paint and helping them to paint their community.
Let’s Color Project Website
See data below for how this campaign affected the health of the brand.
Kevin Burke, CMO, Visa Inc. @kevinburkeSF
What will marketing be like in the future?
It will be seamless, smarter, and omnicommerce.
We live in the physical world, but now we also live in a virtual world with no boundaries. People can purchase your product from anywhere, and often times it will be from their mobile phone. The mobile phone is what you must keep in mind when developing your marketing strategy. “If you can’t tweet the strategy then its not probably worth creating.”
Things to think about as you strategize:
“Why should a customer share, why should a customer care”
“Now is often too late” think about the future. Need to anticipate outcomes so you are ready.
620 million searches are being done on mobile everyday. They often lead to a transaction.
Audience Deficit Disorders is a social ailment and its contagious.
1.2 bill smart phones in the world
View the world through this mobile window
Use the cellphone at work more to optimize the consumer experience.
What ever we do has to be done for the flick (mobile phone)