10_Marketing

[|Andreas Weigend] MS&E 237, Stanford University, Spring 2010
 * Social Data Revolution**

=**Class 10: Marketing**= Date: April 29, 2010 __Audio__ | __Video__ | __Transcript__ Company: [|Rocket Fuel Inc], [|Open-First] toc

=**What is marketing all about?**=

- understanding clients' needs - strategy to use in sales, communication and business development

=Evolution of marketing=

Recently, marketing has evolved to set place to a new kind of marketing. Below are some differences between those old and new marketing:


 * Old marketing || New marketing ||
 * Create a message for the customer to feel special || The customer create or co-create the message ||
 * Companies want to make you believe they have something special for you || Companies help people to make good decision for themselves ||
 * 1-to-1 marketing without listening and with interrupting || 1-to-1 marketing without interrupting and with listening ||
 * Technology was the bottleneck (too much data to process) || creativity is the only limit ||
 * Pricing: charge as much as you can || Pricing: charge as little as you can ||
 * The firm knows its products better than the customer || The customers know the products better than the firm ||

A few acronyms useful in advertising: - [|CPM] : cost per mille - [|CPC] : cost per click - [|CPA] : cost per action

=Role of social media in new marketing methods=

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=Social Marketing by Mark Torrance=

Mark Torrance is currently CTO at Rocket Fuel Inc, a company specialized in online display advertising. A complete résumé of Mark Torrance can be found [|here].

Today, it exists two ways to buy online ads : 1. Ad serving (DoubleClick for example) which consist in placing ads on websites 2. Real time bidding which, given the characteristics of a customer arriving on a website, launch an auction between pre-agreed firms (which bet according to the user's characteristics) and display the ad of the company which won the auction.

What kind of data are we using in the second case? Both behavioral and contextual data.

1. Corporate marketing messages
The most time consuming. Dilemmas: - leverage large and pre-built communities vs. control your own audience - control the message/keep it positive vs. being inclusive/full breadth of opinion Social advertising is actually good for companies which have a good product (more people satisfied than unsatisfied)

2. Gaming
Display ads during the game (Xbox platform): is likely to be more and more used. Or trade real money for virtual goods (Zynga business model)

3. Advertising
Audience is shifting online so do advertising. Additionally, online advertising is more effective due to: - contextual analysis: advertising relevant between nearby items - behavioral analysis: advertising relevant to past user actions

4. Scraping social content
What can marketers tell about me?

5. Direct response ads
Get people to take action immediately Leverage immediate to context to know what to pitch

7. Policies matter
Engage within ads

=Open-First essay competition by Ted Shelton=

All the information about this competition can be found here.

Alex Point point@stanford.edu