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Erik Pöntiskoski presents on business as storytelling. He discusses how stories have power and can be used in media, management, and branding. Cultural branding uses identity myths that brands can enact to address social contradictions. The experience economy focuses on customer experiences and making each brand interaction meaningful. Storytelling can also be used in digital marketing and changing industries.
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- 1. Business as storytelling Erik Pöntiskoski 23E47000 Digital Marketing September 23, 2009
- 2. Agenda Cultural branding Business as storytelling The Changing experience industries economy 23.9.2009 Erik Pöntiskoski 2
- 3. Erik Pöntiskoski + Lecturer / Researcher / Ph.D. Candidate, Helsinki School of Economics HSE, 2006- + StratMark research project (www.stratmark.fi) + On-going dissertation on Marketing Spirit – managing market and sales orientation in corporations + Aalto University Media Factory + Lecturer, Helsinki University of Technology, 2008- + Education + M.Sc. (Econ) & Business Mentor from HSE + Areas of expertise and experience + Strategic marketing, sales and sales management, internationalization, change management, US and Japanese markets + Management training for Johtamistaidon opisto & Dipoli + Business dev’t projects with Nokia, Transearch Int’l, Beijer Electronics, Duetto Group + Work for Euro RSCG ad agency, Finpro (South Korea) + Digital marketing, internet services, social media, business models 23.9.2009 Erik Pöntiskoski 3
- 5. Evolution of marketing Operative Strategic Expected utility Value in use Unique selling points Value proposition Transaction Co-creation Function Culture Mass media Dialogue Advertising PR & stories Analog Digital Controlling Real-time measurement 23.9.2009 Erik Pöntiskoski 5
- 6. Using digital marketing Discussion: Take the example of Daily Perfect + Analyze the service based on the 3R model presented in the previous lecture + Relevant + What everyday problem does the site try to solve and how well does it do the job in your opinion? + Real + How authentic does the site feel? + Responsive + Does the site make you want to return (sticky) and do want to tell other people about the site or what you do there (viral) 23.9.2009 Erik Pöntiskoski 6
- 7. Facebook applications Standard setting :Share my name, networks, and list of friends, as well as the following information: + Profile picture + Groups I belong to + Basic info + Events I'm invited to + Personal info (activities, interests, + Photos taken by me etc.) + Photos taken of me + Current location (what city I'm + Relationship status in) + Online presence + Education history + What type of relationship I'm + Work history looking for* + Profile status + What sex I'm interested in* + Wall + Who I'm in a relationship with* + Notes + Religious views* + Website 23.9.2009 Erik Pöntiskoski 7 * Opt-in alternatives
- 8. Storytelling and cultural branding Or how you should relate to you business and customers
- 9. Viewpoints into storytelling The power of stories has been discussed in + Media and arts + Management and organizational studies + Branding 23.9.2009 Erik Pöntiskoski 9
- 10. Media and arts Narratives + Wikipedia: A narrative is a story that is created in a constructive format (as a work of writing, speech, poetry, prose, pictures, song, motion pictures, theatre or dance) that describes a sequence of fictional or non-fictional events. + See Poetics (Aristotle) or the Hero with a Thousand Faces (Campbell) 23.9.2009 Erik Pöntiskoski 10
- 11. Values Development of Organizational Culture and Spirit Norms Artifacts & Symbolism Desired Adopted from Pettigrew (1979), Organizational Alvesson & Berg (1992), Behavior Deshpande & Webster (1989), Homburg & Pflesser (2000) ? Performance 23.9.2009 Erik Pöntiskoski 11
- 12. Branding models (1) Mind-share branding (1970 ) + Cognitive models + Goal of branding is to get people remember your name and have certain shared associations towards it ”Brand as a set of abstract associations” September 23, 2009 Erik Pöntiskoski 12
- 13. Branding models (2) Emotional branding (1990 ) + Focus on the relationship between the brand and the customer + Goal of branding is to build a deep and personal relationship ”Brand as a relationship partner” September 23, 2009 Erik Pöntiskoski 13
- 14. Branding models (3) Viral branding (Late 1990’s) + Thanks to the internet, great ideas can spread like fire + Goal of branding is to get consumers to tell you story, it should spread like a virus in personal social networks + Companies hire ’Cool hunters’ to tell them what’s hip ”Brand as a communication unit” September 23, 2009 Erik Pöntiskoski 14
- 15. Branding models (4) Cultural branding (2000 ) + Brands don’t compete on product markets, but myth markets + Goal of a brand is to enact, actualize, and retain some kind of identity myth for customers + Similar to iconic movies, brands should identify and address social contradictions, and offer a solution e.g. Budweiser supporting the masculinity of its drinkers (?) ”Brand as performer and container of an identity myth” September 23, 2009 Erik Pöntiskoski 15
- 16. The experience economy 23.9.2009 Erik Pöntiskoski 16
- 17. The experience economy Customer Experience Places (Pine & Gilmore) + Your customers decide what is your marketing + Each contact with your brand matters + Part-time and full-time marketers + Marketing, branding, customer service, tech support, shops, design, www, etc. + Hierarchy and logic to what kind of experiences the audience experiences in different physical and virtual environments taking the customer through to the actual purchase + Ease of purchase, experience in purchase, price, handling order, delivery, staff behavior and attitude, after-sales services, usability + How can your customer be sure it wasn’t a mistake to buy from you? + The quality of the experience determines how much people are willing to pay + Focus on the whole audiovisual experience of using a website, entering a shop + How is this managed like a theme park? 23.9.2009 Erik Pöntiskoski 17
- 18. Same business – different approaches Boating as a product: Buster aluminiun boats + Safe, durable & lightweight +http://www.buster.fi/ As a service: VATOR – Service + Maintenance, docking +www.vator.fi As an experience: Marinemax Getaways!® +http://www.marinemax.com/ Page.aspx/pageId/152/About- Getaways.aspx 23.9.2009 Erik Pöntiskoski 18
- 19. The value proposition A set of benefits or values a company promises to deliver to customers to satisfy their needs - Kotler + We can identify two levels 1. The value the customer experiences 2. The technology and process used to create and deliver the value + The first thing you talk about shows what you think is most important + Look at any corporate website or salesperson’s presentation + Talking about yourself usually means that you don’t either understand, know or care about the customer + The value you provide your customers defines the success of your business + Consumers vs. prosumers 23.9.2009 Erik Pöntiskoski 19
- 20. Digital marketing Changing industries
- 21. Mini-case: Debt collection Business development at Duetto Group Ltd. + Invited to work on marketing strategy for launch of on-line service for debt collection + Typical development project + Different understanding of what is the real problem we are facing: Commercializing on-line service or comprehensive development of strategy, operations and culture? + First stage + Figuring out strategy and competitive advantage, STP exercise, defining a value proposition + Second stage + Execution: Combining traditional and digital marketing & sales activities to implement the selected strategy 23.9.2009 Erik Pöntiskoski 21
- 22. Recap: So what do you do in different media and channels Awareness + Letting customers know we exist Preference + Convincing them we are the best partner Purchase + Assuring that buying from us is the right decision Consider + What is the main message you would like to convey to take the customer to the next level? + What channels would you use? + Who do you want to have a conversation with? 23.9.2009 Erik Pöntiskoski 22
- 23. Practical tool used in case Goal Actions Ownership Schedule Measure- Follow-up (what?) (how?) (who?) (when?) ment Awareness Partnerships, One person Decide on one Sales Reporting and among own named main message Sales growth evaluation decision- publications responsible + and blast it at Customer among makers in assistance every possible satisfaction management segment from others event for the team Repurchases next year! Preference as Training and Customer favored seminars, equity service- newsletter (e- Follow provider mail) number of leads into sales funnel Purchase Direct and marketing (e- conversions mail), personal 23.9.2009 Erik Pöntiskoski 23 +23 selling
- 24. Mini-Case: Consumer goods Nike, Inc + From a cultural branding or storytelling perspective, what do you think Nike is all about? + So how can they be a part of their customers everyday life, have their brand co-exist side by side with people when they do stuff that’s important for them every day? Nike ID & Nike+ & YouTube marketing 23.9.2009 Erik Pöntiskoski 24
- 25. Mini-case: the entertainment industry Industry drivers and trends + Why content used to be King (Jonathan Handel) 1. Supply and demand + Increase in supply of professional and user-generated content, especially on-line, while people have the same amount of money and time to spend for leisure + Think of how you spread your time for movies, TV, radio, print news, Twitter, YouTube, MySpace, Facebook, Wikipedia… 2. The decline of tangible media + Media content has lost its physical form making it less valuable considering per-unit costs manufacturing costs + Illegally downloading a film or sneaking into a theater doesn’t feel as wrong as shoplifting a DVD 3. Reduced transaction costs for intangible media + Reduced costs of distribution increase competition, reduce prices 23.9.2009 Erik Pöntiskoski 25
- 26. Mini-case: the entertainment industry 4. The rise of free content + Optimistic entrepreneurs and managers chose ad revenue based business models + Recent recession has encouraged companies to introduce pay-per-view or subscription business models following the success of iTunes and Amazon.com downloads + Are consumers willing to pay for something that used to be free? 5. Market forces in the technology industry + Traditionally in the business logic has been that channels create demand + Usually in business ventures, the partner who is closest to the paying customer has the most power + Traditional media companies have been reluctant to adopt new distribution channels in fear of cannibalization 6. The culture of piracy + We can blame the new generation or breed of consumers who are hostile towards copyright and its owners + But are the content industries like music not to blame at all? 23.9.2009 Erik Pöntiskoski 26
- 27. The industry fights back Transmedia storytelling + A.k.a. cross-media, cross-platform, connected media… + “integral elements of a fiction get dispersed systematically across multiple delivery channels for the purpose of creating a unified and coordinated entertainment experience.” (Henry Jenkins) + The Matrix franchise consists of three live action films, a series of animated shorts, two collections of comic book series, and several video games + Leverage your brand and fan base in all possible media to create lock-in and increased sales providing a superior experience + The challenge is, how do people want to consumer media? 23.9.2009 Erik Pöntiskoski 27
- 28. Mini-case: Level 26 – Dark Origins Transmedia experiment + Digi-novel published by CSI creator Anthony Zuiker + Aimed at crime and horror fans, tailored for their attention span + Created with EQAL’s Umbrella platform enabling e.g. Twitter, YouTube, and Facebook integration + Business models typically freemium, premium (allows content owners to control ads) or revenue share + Launch utilized on-line video, Twitter prizes, forums, UGC + Currently #31 on NYTimes bestseller list, ~1.200 on Amazon Kindle 23.9.2009 Erik Pöntiskoski 28
- 29. Mini-case: Film industry Wreck-a-Movie + Main idea + Crowd-sourcing web platform utilizing the power of passionate Internet communities for creating short films, documentaries, music videos, Internet flicks, full length features, mobile films and more + Social community, simple workflow and marketplace that builds communities around film productions + Helps get films done faster and at a lower cost through crowd- sourced work on production tasks and online resourcing of expertise and corporate funding + Create a viral social marketing force + Secured partial funding for 4 MEUR budget film Iron Sky from Finnish Film fund and investors 23.9.2009 Erik Pöntiskoski 29
- 30. Mini-case: The music industry New business models + Spotify + Legal access to huge database of music + Free advertising funded music at no cost if you have an invite + If not, you can choose ad-free version with a daily pass (0,99 ) or monthly subscription (9,99 ) + SellaBand + Crowd-funding platform allowing artists to record their music funded by their fans 23.9.2009 Erik Pöntiskoski 30
- 31. Mini-case: Soccer Fans MyFootballClub + Organization sought, starting in August 2007, to recruit at least 50,000 football enthusiasts from across the world to purchase an English association football club + Internet service allows its paid members to control the club through a democratic voting process conducted over the internet + Member voting includes matters both on the pitch, such as team selection and player transfers, and off the field, like what type of food to serve at the stadium (Wikipedia) 23.9.2009 Erik Pöntiskoski 31
- 32. Thanks for your attention! Erik Pöntiskoski Helsinki School of Economics erik.pontiskoski@hse.fi Tel +358 50 5208 633 23.9.2009 Erik Pöntiskoski 32