New realities 2014

THE NEW REALITIES
OF MARKETING
FROM DEMAND TO DEMANDING:
IPG
MAY 2014
INDIA

THE PERCENT OF INDIAN CONSUMERS WHO
NOW HOLD BRANDS TO A HIGHER
PERFORMANCE STANDARD
THAN EVER BEFORE

ESTIMATED SIZE OF THE GLOBAL
MIDDLE CLASS BY 2030.
AN INCREASE OF OVER:
Source: European Union Institute for Security Studies (2013)

Wall Street Journal 7/5/13 “The New Middle”
“EVERYWHERE IT HAS EMERGED,
A MODERN MIDDLE CLASS
CAUSED FERMENT”

Wall Street Journal 7/5/13 “The New Middle”
“MIDDLE CLASS PEOPLE WANT NOT JUST
SECURITY FOR THEIR FAMILIES, BUT CHOICES
AND OPPORTUNITIES
FOR THEMSELVES”

SPURRED BY NEW TECHNOLOGIES THAT
PROVIDE EASIER AND FASTER ACCESS TO
MORE AND MORE INFORMATION…

A NEW DEMAND ON POLITICIANS, ON GOVERNMENTS,
ON THEMSELVES…AND ON THE PRODUCTS THEY
SHOP FOR AND CONSUME.
THE NEW REALITY

MORE DEMANDING…
OF THE PRODUCTS THEY CONSIDER (QUALITY YES, BUT MUCH MORE)
OF THE WAY MARKETERS DELIVER THEIR INFORMATION
OF WHEN MARKETERS DELIVER THEIR INFORMATION
OF THE SPECIAL VALUE FROM TODAY’S CONSUMER EXPERIENCE
OF WHAT’S NEEDED TO ADVOCATE FOR A BRAND
OF THE CHANNELS THAT CAN PROVIDE PRODUCT INFORMATION
OF HOW THEY GET TRUSTED INFORMATION
OF THEIR OWN PROCESS TO EVALUATE PRODUCTS TODAY

…AND UNDERNEATH
MUCH OF THIS, A
GROWING DEMAND
FOR TRUST

OUR
INTERVIEWS US, BRAZIL, CHINA,
INDIA ENGLAND AND RUSSIA
METHODOLOGY
600+/-
ONLINE
INTERVIEWS,
PER
COUNTRY:
Men and women
Interviewing
March 2013
Completed first wave of
research in 2009: US, China.
75
0
BOOMERS
GEN X
GEN Y
US BRAZIL CHINA INDIA RUSSIA UK

DIA RUSSIA UK
?
WHICH COUNTRY?
Most values advertising in their
product decision making?
US, BRAZIL, CHINA, INDIA, RUSSIA & UK…

DIA RUSSIA UK
?
WHICH COUNTRY?
Leads in mobile use of
product information?

DIA RUSSIA UK
?
WHICH COUNTRY?
Where people most value
product reviews?

WHICH COUNTRY?
Where people are least likely to be
confused or frustrated by all the product
information today?
DIA RUSSIA UK
?

DIA RUSSIA UK
?
WHICH COUNTRY?
Where having great product
knowledge has the greatest
impact on self-esteem?

DIA RUSSIA UK
?
WHICH COUNTRY?
Where consumers are most
inclined to initiate brand
conversations with their friends?

CONTINUED LOW LEVELS OF CONFUSION
AND FRUSTRATION FROM
Frustrated
Confused
FEELINGS ABOUT AVAILABLE PRODUCT INFORMATION
(MEAN RATINGS; 1-10)
PRODUCT INFORMATION
3.1 3.2 3.5 3.5 2.5
3.0 3.1 3.7 3.5 2.6
3.2
3.1
Smarter 7.0 6.5 3.7 7.5 6.9 6.0

FEELINGS ABOUT INFORMATION
(MEAN RATINGS; 1-10)
In Control
INDIA: INFORMATION PROVIDING
7.0 7.1
2011 2013
LESS CONFUSION
Smarter 7.3
Confusion 3.7
Uninformed 5.0
7.5
3.5
4.4

% STRONGLY AGREEING
…but this doesn’t mean that more information is necessarily better! More on this later.
INFORMATION IS
US % BRAZIL CHINA INDIA RUSSIA UK
49 57 56 57 58
63 66 60 55 66
55 60 62 60 66
36
49
40
Information availability has made me more
confident in brand choices
Increased information has also increased
my satisfaction with brands
Information is my friend
THEIR FRIEND!

INDIA: SLIGHT INCREASE IN
VALUING PRODUCT
INFORMATION
2011 2013
% STRONGLY AGREEING - BRAZIL
55
Information is my friend 54
60Information availability has made me
more confident in brand choices
57
57
Increased information has also increased
my satisfaction with brand
55

“I always seek out trusted resources
of information on brands”
% STRONGLY AGREEING
52 67 60 57 63 42
THE VALUE OF TRUST –
A STRONGER AND STRONGER
MARKET FORCE

% STRONGLY AGREE
…WITH THE OLDER INDIAN
POPULATION MOST DEMANDING OF
52 57 63
18 - 25 26 - 42 43 - 62
TRUSTED RESOURCES
“I always seek out trusted resources
of information on brands”

…To Find The Most Trusted Information
MORE AND MORE
More And More Reliance On
“Tools” To Filter, Process And
Make Sense Of It All…
INFORMATION

“PERSONAL
RECOMMENDATIONS
ARE MORE IMPORTANT
THAN THEY WERE A
FEW YEARS AGO”
CONSUMERS SEEK (DEMANDING!)
THE PERCENT
AGREEING IS
UP IN ALMOST
EVERY
COUNTRY
SURVEYED!
TRUSTED, INDEPENDENT
INFORMATION FROM PERSONAL
SOURCES

OTHER OBJECTIVE, TRUSTED SOURCES ALSO
“TURNING MORE AND
MORE TO PRODUCT
REVIEWS”
THE PERCENT
STRONGLY AGREEING
IS UP IN EVERY
COUNTRY SURVEYED!
MORE AND MORE
IMPORTANT THAN EVER

The Power of Friends and Families, and
Product Reviews in India
Friends and family from whom you
sought out opinions
Friends and family who volunteered
their opinion
Research you conducted on the internet
Product reviews by experts (such as
professionals in magazines, on the web)
Product reviews by people like you
(such as in publications, on the Web)
Advertising by the company
(such as TV, print, Internet ads)
Observing people use them
Personal and Brand pages on
Social Media
WHAT CHANNELS ARE
MOST VALUABLE
56
54
61
55
56
44
43
51
49
47
42
42
51
45
53
52
45
53
50
44
50
58
58
55
63
63
45
51
58
59
62
57
58
44
46
57
60
45
42
39
62
30
14 24 19 19 16 13

INDIA: WITH DRAMATIC SHIFTS IN
VALUE OF TRUSTED
SCREENER CHANNELS
Wave 2 Wave 3
53
Product reviews by experts 43
50Product reviews by people like you 35
53
Friends and family
44

“Social network sites are a
good source of word-of
mouth information
on brand experiences”
% STRONGLY AGREEING
34 46 49 44 42 14
CONSUMERS ALSO DEMANDING MORE HELP
FROM SOCIAL MEDIA –
A SOURCE OF TRUSTED
“FRIEND” OPINION

“With all the information available
today, I am relying more and
more on trusted brands”
% STRONGLY AGREEING
44 52 55 60 53 27
…ALL LEADING TO MORE RELIANCE ON
TRUSTED BRANDS

% STRONGLY AGREEING
40 55 53 41 3257
AS A SIGNAL OF NEEDED TRUST,
BRAND REPUTAION IS
EVEN MORE VALUABLE TODAY
“Brand names and brand
reputation matter more these
days than ever before”

Strong effort to support independent information sources (blogs,
price comparison sites, aggregators, opinion leaders) with rich,
valuable, honest brand information
Do you have a “Brand Truth”
Director or a Chief Content Officer?
HOW ARE BRAND LEADERS MEETING THIS NEW
BUSINESS CHALLENGE

More and more transparency
Only 6% of all on-line product complaints are now
responded to by manufacturers. The other 94%?
Being “trusted” means you recognize your brand’s
weaknesses, admit failures, correct them…and
have the conversation.
BUSINESS CHALLENGE

And understand that driving “brand trust” is much more than
just providing information via the web.
Needs to include:
Employee efforts
Consistency of product quality
Brand image efforts
Product sourcing/company values
BUSINESS CHALLENGE

THE DRAMATIC EMERGENCE OF
BRAND JOY AND
“SOCIAL CURRENCY”
FROM BRANDS

% VERY STRONGLY AGREEING
44 53 54 50 46 30
52 48 57 54 61 43
46 56 51 53 46 32
50 66 63 57 58 41
The research I do on certain brands adds to
my enjoyment of them
It’s fun to be knowledgeable about
certain product categories
Finding information on
brands is fulfilling
I enjoy researching the
information for buying decisions
WITH THE EXCEPTION OF UK, PRODUCT
LEARNING IS A SOURCE OF
JOY & FULFILLMENT

INDIA – LEVELS OF JOY FROM
2011 2013
% VERY STRONGLY AGREEING
57
I enjoy researching the information
for buying decisions
54
54It’s fun to be knowledgeable about
certain product categories
53
50
The research I do on certain brands adds to
my enjoyment of them
50
PRODUCT RESEARCH
HOLDING STEADY

AND ESPECIALLY IN BRAZIL, CHINA, AND INDIA,
INCREASINGLY THEY WANT TO TELL ABOUT
BRAND KNOWLEDGE
AND COMMITMENT
% STRONGLY AGREEING
“I regularly initiate conversations with
friends, family, or colleagues about
some brands”
“If I feel strongly about a certain brand, or
brands, I am an active advocate for them”
35 40 53 48 33 20
38 42 50 49 39 25

WHAT ELSE IS DRIVING
BRAND ADVOCACY?
% STRONGLY AGREEING
59 62 50 73 49 58
“I like to help people”
“I enjoy being seen as knowledgeable”
40 50 39 61 52 31

WITH INDIA SHOWING THE HIGHEST
LEVEL OF PRIDE IN
PRODUCT KNOWLEDGE
“I take pride in being knowledgeable about
the brands I use”
% STRONGLY AGREEING
46 43 42 51 45 30

Pursue “advocate communities.”
In the US, BuzzAgent—
Telling others about your product in
exchange for goods/services.
They’re easily found. (frequent visitors to blogs, social media,
company web sites.)
Important to establish special programs to “feed” them the
information (and brand excitement) they’re looking for. Reward
them.
ADVOCATES WORK
HARDER FOR YOU
HOW TO MAKE “BRAND LOVERS” AND

BUT NOT ALL DECISION
MAKERS ARE ALIKE OUR
RESEARCH
HAS IDENTIFIED
5 SEGMENTS

INFORMATION
OBSESSED
“I Research Most Decisions
Deeply, And Often Enjoy The
Research As Much As The
Product Itself”

“I’m Not Obsessed With
Research, But I Enjoy It. It
Makes Me Feel Good When
People Ask For My Advice
When They’re Making
Those Purchases”
INFORMATION
SELECTIVE

“I Don’t Especially Enjoy
Researching, But I Know I
Need Information To Make
The Right Decision”INFORMATION
FUNCTIONAL

“I Just Want To Make
Quick Decisions, So Will
Ask Friends What
They Think” INFORMATION
PASSIVES

“Help. All That Information
Just Frustrates Me!”
INFORMATION
HATERS

…WITH DRAMATIC DIFFERENCE IN HOW THEY
VIEW INFORMATION
Information
Passives
Information
Obsessed
% STRONGLY AGREEING - INDIA
90
Information is my friend 37
90Information availability has made me
more confident in brand choices
44
73
Finding information is fulfilling
37

41%31%
IN INDIA, THE SEGMENTS INTENSELY
INVOLVED IN PRODUCT RESEARCH AND
INFORMATION HAS GROWN
20132011

It’s all about presenting the right information in the right way,
at the right time, for each consumer group.
It doesn’t necessarily mean providing more, or less, information.
HOW ARE SUCCESSFUL MARKETERS
DEALING WITH THESE
SEGMENTS

Since each segment has different needs when it comes to consuming
product information, marketers today need to help them find the
information pathway that’s best for them, and then guide them along.
BRAND NORTHSTAR
BE THE

for casual consumers just wanting some
information on key benefits
FOR EXAMPLE, ON YOUR WEBSITE:
Quick summary of your key features and advantage.
Focus on primary product benefits/use.
ROUTE 1

for casual consumers who are more engaged, and
wanting deeper production and competitor information
Quick summary of your key features and advantage.
Focus on primary product benefits/use.
ROUTE 2

for the “information obsessed and selective”
Deep dive.
Deeper presentation of all category players, competitive
product specs, consumer reviews, blogs.
Deep background on your product story, (history, sourcing,
social policies, green program, etc.).
ROUTE 3

BUT THERE’S ONE COMMON THING ALL
SEGAMENTS ASK FOR, ACTUALLY THEY
DEMAND IT…

Which was most powerful in driving purchases,
repeat and recommendations?
RECENT SURVEY CONDUCTED BY THE CORPORATE
EXECUTIVE BOARD AMONG 7000 CONSUMERS
WORLDWIDE
Looked at 40 marketing-related variables.

DECISION
EASE:
THE EASE WITH WHICH CONSUMERS CAN GET
TRUSTWORTHY INFORMATION ABOUT A PRODUCT.
9% more likely to be repurchased.
115% more likely to be recommended to others!
Brands with the top “decision simplicity scores” were 86%
more likely to be purchased (vs. low scoring brands).

The consumer is more
demanding than ever before
TODAY’S NEW REALITY

“How can we deliver more and more of it
to our customers?
How do we increase transparency?
How do we build stronger “brand trust” in
our brand and our company”
KEY TO MUCH OF THAT DEMAND IS THE
NEED FOR TRUSTED INFORMATION

“How do we better satisfy their demand for
product information and social currency?
How do we encourage users to advocate
more for us?”
EMERGING DEMAND FOR “SOCIAL CURRENCY” AND JOY
FROM PRODUCT INFORMATION …AND THE FOLLOW ON
INTEREST IN ADVOCATING FOR YOUR PRODUCT

“How can we make the process
easier, faster, simpler for our
customers and prospects?”
ALWAYS RECOGNIZE THE
IMPORTANCE OF DECISION EASE

NOW, MORE THAN EVER...
EMBRACE THE NEW
REALITIES

New realities 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New realities 2014

Similar to New realities 2014 (20)

Recently uploaded

Recently uploaded (20)

New realities 2014