The Behavioral Marketing Concept Has Revolutionized Online Advertising

In today’s modern world where more and more people are conducting businesses online, the marketing strategies have become crucial to have an edge in the competitive world of online advertising. In a scenario where many similar websites are vying for the attention of limited consumers, it would make business sense for a marketer or advertiser to identify the core group of consumers who are genuinely interested in his products and services. This enables the advertiser to prevent the tremendous wastage of efforts and resources which are incurred while randomly targeting all online visitors irrespective of their needs and interest in the product or service offered by the advertiser’s website. The Behavioral Marketing Concept has managed to bring this advantage of identifying the actual potential consumer within the smart advertiser’s grasp.

The Behavioral Marketing Concept focuses on consumers on the basis of their behaviors on Internet sites, rather than strictly by page contents. Clients who subscribe to the Behavioral Marketing Concept target other clients by aiming advertisements to categories or predefined segments. The advertisements and communication messages are created with information compiled from IP details and click stream data. An Internet user visits various interest pages in a category on a specific website. The user is then targeted by the specially created advertisements via a ROS (run-of-site) placement. Under the Behavioral Marketing Concept, the placement is not the key, but the Internet user’s behavior.

Advertisers and online publishers use the Behavioral Marketing Concept to boost the usefulness of various campaigns. The concept is to examine a consumer’s Internet behavior unobserved and then provide the most significant advertisement based on conduct. Theoretically, Behavioral Marketing Concept aids different advertisers in conveying the advertisement specifically to online users who are probably influenced and interested in the product and service on offer. Tacoda & Revenue Science are two leaders in the markets of Unites States of America, which focus strictly on assisting advertisers and publishers to implement Behavioral Marketing Concept.

Moreover, the big advertisement networks (Microsoft, ValueClick, Advertising.com and BlueLithium) have actually added the implementation of the behavioral marketing concept to their services and are able to incorporate it with demographic and geographic targeting. Google claims it will strictly target the marketing of advertisements based on the details of the particular page where the advertisement is displayed. This particular aspect of the behavioral marketing concept is referred to as Contextual Marketing.

Applying the behavioral marketing concept, in the latter half of 2002, Yahoo initiated its initial version of Behavioral Marketing. The product which also supported European and Asian scoring for visitors was known as “Fusion”. In the year 2003, Yahoo started a redesign initiative for its behavioral marketing profiling technology, known as Behavioral Targeting 2.0. Assorted improvements in visitor scoring, automated categorization, inventory predictions and enhanced reporting were all rolled out over the last several years. When it comes to privacy issues, a number of advocacy groups and online users are strongly concerned around this sort of behavioral marketing. However the advantages offered to advertisers and users will ensure that the concept is around for a long time to come.

The Marketing Concept

During the 1960s, the term ‘marketing concept’ emerged. It was a ‘revolution’ because what can be considered as modern businesses have changed their strategies and the total activities of their businesses. William J. Stanton, Professor of Marketing at the University of Colorado stated:

“The marketing concept is based on two fundamental beliefs. First, all company planning, policies and operations should be oriented toward the customer; second, profitable sales volume should be the goal of a firm. In its fullest sense, the marketing concept is a philosophy of business which states that the customer’s want satisfaction is the economic and social justification of a company’s existence. Consequently, all company activities in production, engineering, and finance, as well as in marketing, must be devoted first to determining what the customer’s wants are and then to satisfying those wants while still making a reasonable profit.”

A marketing executive at the General Electric Company, one of the first companies formally to recognize and implement the marketing concept, emphasized the important role of marketing in a nice way when he said: “We feel that marketing is a fundamental business philosophy.” It is obvious that this definition recognizes the importance of implementing the philosophy of marketing’s functions and methods of organizational structuring. Although it must be realized that marketing’s functions and methods are not, in themselves, the philosophy.

But the best-known writer on the subject at that time was Professor Theodore Levitt of Harvard. He had this to say: “Every major industry was once a growth industry. But some that are not riding a wave of growth enthusiasm are very much in the shadow of decline. Others which are thought of as seasoned growth industries have actually stopped growing. In every case the reason growth is threatened, slowed, or stopped is not because the market is saturated. It is because there has been a failure of management. The failure is at the top. The executives responsible for it in the last analysis are those who deal with broad aims and policies.”

The excuses used for declining growth of the railroads, for example, were not because the need for passenger and freight transportation declined. That grew. The railroads were in trouble not because the need was filled by others like cars, trucks, airplanes, even telephones, but because it was not filled by the railroads themselves. The railroads companies let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry wrong was because they were product-oriented instead of customer-oriented.

Peter Drucker, the world’s leading writer on the whole field of management, says: “It is the customer who determines what a business is. It is the customer alone whose willingness to pay for a good or service converts economic resources into wealth, things into goods. What the business thinks it produces is not of first importance-especially not to the future of the business and to its success… What the customer thinks he is buying, what he considers value, is decisive-it determines what a business is, what it produces and whether it will prosper. And what the customer buys and considers value is never a product. It is always utility, that is, what a product or service does for him…. Because its purpose is to create a customer, the business enterprise has two-and only these two-basic functions; marketing and innovation. Marketing and innovation produce results; all the rest are ‘cost’. It is vital for every company regularly to ask this question ‘what business are we in?’ and to answer it in terms of what its customers buy not in terms of what it produces.”

More recently, Professor Peter Doyle has said that “Marketing-the task of seeing to provide customers with superior value-is so central that it cannot be seen as just another function alongside production, finance or personnel. The central task of management is to find better ways of meeting the needs of customers.”

source: http://en.articlesgratuits.com/the-marketing-concept-id1429.php

How to Use Web and Internet Video to Market and Communicate

IBM Uses “Do It Yourself” Video to Communicate and Market

“No more long, cumbersome marketing documents – no more boring presentations. Video is how companies and business should communicate,” says Mark Leaser, Worldwide Offerings Manager, IBM Software Services for Lotus. “You can do it yourself and save thousands of dollars.

IBM Software Services for Lotus is using video in a wide variety of ways – for internal education and communications as well as for external marketing and customer relations.

Internally, Mr. Leaser and his department are using video for sales training, communication where they want to propose a particular course of action, and to provide training of their technical solution architects and solution specialists. They also are doing internal case studies – talking head interviews and lots of screen capture using their own LotusLive web conference solution and mixing it with live video.

IBM is also using video externally to promote and market their assets and solutions worldwide. The video messages are designed to help customers select, purchase and use the appropriate business solutions.

To speed up the production process, and to ensure a consistent look and feel, Mr. Leaser has developed an effective standardized format to deliver these external messages. These external communication videos usually start with a short teaser – essentially a one to two minute video introduction to a business solution then followed by an action step that is designed to steer viewers to specific online IBM landing pages with much more detail.

Combining the best practices from successful eCommerce and eTailing sites, these landing pages use even more video to further educate and market products and services. A typical video landing page will include links to additional content including additional video and product information. The landing page can also include “infomercial” type videos, as well as videos on how the products work and where to go for more info.

IBM uses video as a means of attracting interest in something that they are doing. The video segments have to be more than a commercial – they have to offer content with value, information of how their solutions will help their customers’ business, and tips for using particular solutions.

IBM Saves Money by Producing In House

Currently IBM uses outside production services as well as internal teams to create their videos. The customer case studies and/or reference videos are usually produced by an external company but increasingly, a larger percentage of the videos are being produced internally. Many of the videos are shot at tradeshows and events where IBM’s various technical and product experts are in attendance. Rather than hiring an outsider who charges $10K to $15K to produce a video, IBM found that they can do it ourselves, single camera, for a small fraction of the price, and it is just as effective. Over a year, they save hundreds of thousands of dollars.”

Some case study videos are shot multi-camera but 90% of all productions are single camera. Most of the videos are captured using standard HD prosumer camcorders (recording onto 16 gigabyte SD cards) with flat lighting from a single large lightbox. For capturing audio, Mark uses professional Sony lavaliere microphones and Audio Technica shotgun microphones. Mark says, “Simple works. One of the most important technical details is to make sure we have clean audio.”

To improve the efficiency of the video editing and production process, the video is captured in a native Quicktime format and then inputted into Mac computers running Final Cut Studio. Mark has settled on h.264 and DVKitchen for compression and distribution over the company’s intranet as well as over the Internet. Mark usually compresses at the standard Apple TV settings (h.264 at 1280×720 with a 4800 kbps data rate) but DV Kitchen makes it simple to provide a variety of compression templates for various viewing and distribution options.

In many ways, their video production process is just like producing a document using Microsoft word. They use standardized formats and templates, and standardized technical specifications that allow a “producer” to easily cut and assemble a video without having to know a lot of technical details.

Once the video is done, the IBM team can share it in a variety of ways. For internal videos, they often use their own internal media servers or YouTube where the videos can be viewed using the standard YouTube video player.

However, for their external marketing videos, they were not satisfied with embedding YouTube in their public facing pages because there was too much clutter and not enough brand control. To give them more control and present a more professional look, they use outside video hosting companies and video platforms that can be customized.

Authoring video in house works for IBM because their current generation of IT decision makers understand the video language and often don’t have the patience to wade through a white paper or technical presentation. To properly reach them, information needs to be presented in a lively, colorful and high-energy mode that can only be conveyed via video.

SIDEBAR

Three reasons your business should use video to communicate

1. Use video – it works. The impact is phenomenal. Following the lead of the direct marketing industry which claims a 4x improvement in response in video versus text, Mark says that short videos with links is the most effective way for establishing powerful outward bound communications and building brand equity. Your audience expects video and you need to give it to them. An effective business presents information in a manner that is most receptive by their target audience.

2. Learn how to do it yourself. Modern video technology and solutions are easy to learn and very affordable. In many ways similar to cut and paste word processing, DIY video production has become the baseline for business communications and marketing. It is similar to the past evolution to word processing from executives relying on secretaries. The stratified and inefficient business architecture of the “Mad Men” TV show is long gone. Similarly, a new business communication paradigm is occurring now with video. Word processing is being supplanted by video. Long documents and boring powerpoint presentations are being replaced by video. Because DIY video is so efficient as a communications tool, it should be an integral part of your business.

3. Video is easier than people think. It is no longer some mystical technology. Yes, 20 years ago, video was complicated, expensive and required an advanced degree. However, with the advent of simple to use video nonlinear “cut and paste” editing programs and affordable high definition digital camcorders, high quality production is now attainable by almost anyone. You can hire someone out of high school who has all the skills. Remember – for business, simple works best. It is all about communicating ideas and information, not fancy effects or 3D explosions.