Content Marketing + Market Segmentation

What is
Content
Marketing?
Dr. Ute Hillmer

20.9.2012 Dr. Ute Hillmer

Content Marketing
Content marketing equips
buyers with the knowledge to
make better-informed
decisions.
The thinking behind it:
Central to content marketing is the belief that if businesses
deliver consistent, helpful information to buyers at the right
time, then prospects will ultimately reward the company with
their purchase and loyalty.

What is Content Marketing?

Content is the reason
people go to your site

Dr. Ute Hillmer, Better Reality Marketing 19.12.2011

Give your customers the content they
want…

…not what YOU think they need!

Picture Dan Zarella

Why is Content Marketing important?

Average person is exposed to
5.000 ads / offers per day

Buyers have tuned out marketing

Think of an Art Gallery

Where is the Art?


People come to see art,
not empty frames or empty walls

Content is the reason
people go to your site


Content Marketing Fundamentals 1
Shift thinking from marketer to publisher
1. Define a critical group of buyers
2. Determine what info these prospects really need
3. Determine how prospects want to receive info
4. Deliver info for maximum impact on goals
5. Measure and recalibrate



World views!


1. Consider the worldview of your
target customer group

2. Tell a compelling story
for them


Content Marketing im B2B

• Companies don‘t have conversations, PEOPLE
have!
• B2B is usually about niche problem solving –
problems are best solved in teams with many
different experts contributing
 “niche” CONVERSATIONS

• Problem solving requires trust  RELATIONSHIPS
• 1:1 Marketing was a buzzword of B2B  n:n

Content Marketing im B2B
• PEOPLE

• niche CONVERSATIONS

• RELATIONSHIPS

• n:n

→ Social Media Chanels

What is
Content
Marketing?

How to Segment
a Market for
Content?

How to Segment a Market for Content?
Age is no longer a key indicator -

areas of interests are!


How to Segment Your Target Market?
One Example…


Take the Market of New Technologies
Why do certain
innovations diffuse much
faster than others?

Why do certain innovations
have a much longer
main street momentum?

New Technologies usually …

change the way
how we do
things...
and we go along
happily and fast

or not so fast ...


Successful B2B marketing is…
• about segmenting customer experiences to fit the
product life cycle and the typical customer profile
• about developing and maintaining trust – matching
the different customer segments need
• about initiating a customer centric dialog that takes
the different customer profiles into consideration

Behavioral economics!

Behavioural Economics
Behavioral economics … study the effects of social, cognitive
and emotional factors on the economic decisions of individuals
and institutions and the consequences for market prices, returns
and the resource allocation. The fields are primarily concerned
with the bounds of rationality of economic agents. Behavioral
models typically integrate insights from psychology with neo-
classical economic theory. In so doing they cover a range of
concepts, methods, and fields.[1]
Behavioral analysts are not only concerned with the effects of
market decisions but also with public choice, which describes
another source of economic decisions with related biases
towards promoting self-interest.
[1] The New Palgrave Dictionary of Economics

“Innovativeness”
= degree to which an individual or a unit is relatively
earlier in adopting new technologies than other
members of a system

Source: Rogers Diffusion of Innovation 1995

an idealized technology product lifecycle

Disruptive Innovation

Continuous Innovation
Market size

Innovators Early Early Late Time
Laggards
2,5% Adopters Majority Majority 16%
13,5% 34% 34%
Rogers Diffusion of Innovation 1995

diffusion of innovation varies…
Marketsize

Time

Marketsize
Marketsize

Time

Time Rogers Diffusion of Innovation 1995
Moore; Crossing the Chasm 1999.

technology life cycle and its buyer
categories
Market size

Laggards
13,5% 34% 34%
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12

mainstream behaviour
Marktgröße

Increasingly
conforming behaviour

Innovators Early Early Late Laggards Zeit
Adopters Majority Majority

Hillmer, Technology Acceptance in Mechatronics, 2009.

individualistic behaviour
Marktgröße

Increasingly
individualistic
behaviour
Innovators Early Early Late Laggards Zeit

Hillmer, Technology Acceptance in Mechatronics, 2009.

Inventors: Techies
Technology is their life

Technology - Crazy
– Spend hours to get the product to work
– Do everything to help the product
– Technology should be for free

Forgiving souls
– Don’t mind lousy documentation and weird procedures
to achieve functionality
– Want technology first – no need for a sales channel

• Their role: they move technology forward but
do not generate much diffusion + generate no
income
20.9.2012 Dr. Ute Hillmer Moore; Crossing the Chasm 1999.

Visionaries
Technology enthusiastic businessmen, driven by a
dream
• Businessman first
- driven to be the first
- new technologies are used to serve their own strategic benefit
- don’t want incremental but fundamental improvements
- make business world aware of new technologies
- not very price-sensitive, have project budget
- live in the future
- communicate with techies and other visionaries


Visionaries (2)
• Take a risk
- love publicity
- risky projects
- start projects from ground up, don‘t want
standards, want to develop them
- buy by intuition (but may claim otherwise)
- highly motivated, driven by a dream


Visionaries (3)
• Excellent communicators
- charismatic; they fight for their project
- like to serve as a reference
- network with techies and pragmatists
- too many references de-motivate visionaries
- look for new ideas in communication with intelligent people

• Their role: they fund the product development
+ give the innovation a “real” application


Pragmatists
Look for measurable, incremental improvement
Driven by business results
- improved productivity
• Avoid risk
- risk is a negative term
- want to work with market leader/ established firms
- look for product quality, support, consulting, good
interfaces, reliability
- want standards, “save buys”
- need references
- live in the present


Pragmatists (2)
Loyal customers
• are interested in company they buy from
• revenue and profit must grow steadily “stability”
• communicate within company and industry
• the first mass market
Their role: They hold the key to the mass
market
BUT: you need to be established in order for
them to buy from you but you don‘t get
established until they buy from you ! ?

Pragmatists (3)

Consequences out of this profile
• One really needs to be familiar with
the processes and issues that worry the
pragmatists

 Offer a clear relative advantage to them


Conservatives
“I don’t have to like the product, even if I use it”

- They do what pragmatics do, but later
- Invest in technology to keep up with competition
- Have low technical competence


Conservatives (2)
- predictable
- want everything faster, cheaper, improved
- are price sensitive
- like bundles, pre-installed solutions
- “if it isn’t broken, don’t fix it”
- very interested in service and support

Their role: huge mass market

technology life cycle and “the gap” or:
why you should focus
Market size

Laggards
13,5% 34% 34%
20.9.2012 Dr. Ute Hillmer Chart based on Moor 1999

Technology Marketing –
What role does
engagement and
dialog play? “


early adopters = visionaries
Marktsize

Innovators Early Early Late Laggards Time


early majority = pragmatists
Marktsize

Innovators Early Early Late Laggards Time


Subjective Construction of Reality
Each individual sees the world
through subjective lenses.
Consider typical customer
segments and try to capture
them socially and emotionally
with
YOUR STORY!

Seth Godin, All Marketeers tell stories, 2009
20.9.2012 Dr. Ute Hillmer Mischel and Morf, Handbook of self and identity, 2003.
Kelly, The psychology of personal constructs, 1991

And now


Exanples for Well Targeted Content
• mymuesli
• Dell
• Krones
• Litago Milch
• Jugend gegen Aids
• Domino Pizza


Dell‘s Customer Centric Content


Content for the User
• Facebook „Krones Academy“

 Facebook im Doppelpack: Krones und Krones Akademie ca. 2000 Fans
 Recruiting , Mitarbeiter und Kundenbindung

Content for Todays and Future Decision Maker
– by Segment


Content for Todays and Future Decision Maker


Content for Future Employees


Best Practice Innov. Marketing


mymuesli


Mymuesli Mixer


Mymuesli Facebook


Mymuesli Blog


Mymuesli Dialog Strategy
Zielsetzung
 Kundenerlebnis bieten
 Informieren + Kundenfeedback
in Echtzeit bereitstellen
 Zuhören & Agieren: frühe
Warnsignale erkennen und
schnell handeln
Zielkunde
 Kunden
 potentielle Kunden
SM Strategie
 Homepage als
Kommunikations-zentrale,
Blog, FB, Twitter einbinden


Litago Milk


Litago Milk

Quelle: Groundswell 2008, S.77

360° Example: Milk


Litago Milk on Facebook


Best Practice ‚Supporting‘
IBM developerWorks
• IBM developerWorks is a free community and social network for 8 million
developers and IT professionals worldwide. It includes content and discussions on
open standards, open source, and IBM technical resources in English, Chinese,
Japanese, Russian, Korean, Vietnamese, Brazilian Portuguese, and Spanish. It
includes 30,000 articles, forums that attract 1 million visitors a month, 400,000
active profiles, 800 bloggers, and 450 wikis. IBM saves $100 million annually from
people who use this resource instead of contacting IBM support.


Jugend gegen Aids e.V. Pro Bono – Online/Offline


Jugend gegen Aids e.V. Pro Bono


Domino’s Social Pizza


Domino’s Pizza Complains


at the end,


Good Content Marketing
leads to Good Dialog Marketing
View the customer as a partner


Success in Dialog Marketing means
You understand where your customers
share their thoughts on
… problems, solutions, … about YOU!

You understand what your customers talk about…
because no one has been waiting for you to lead the
conversation… .
Join in on existing conversations!


Success in Social Media – in the Dialog
relevance

benefit
fun

Goals to be achieved
Information‐ Image Economic
Goals Goals Goals
Improved customer Presentation as a market Awareness, visits,
insight leader registrations,…

Improved product Presentation as innovation Customer loyalty and
insight leader ‐penetration

Presentation as a Good Sales and
Generation of ideas Citizen recommendations

Cost reduction
… …


Hands on Exploitation
Investigate the online + social media activities of one of
the following companies:
 Mymuesli.com (Online Composition and Retail)
 Krones.de (B2B)
 Litago.no (Customer Experience)
 Festool (B2B for SMEs)

Present in 10 minutes/group, what they do online and
what you think is useful and what could be improved

Suggested Reading
• Groundswell by Charlene Li, Josh Bernoff
• Positioning by Trout and Ries
• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
• What would Google do by Jeff Jarvis
• All Marketeers tell Stories by Seth Godin
• 1 to 1 Marketing Future by Don Peppers
• CRM at the Speed of light by Paul Greenberg
• The Long Tail by Chris Anderson
• The Wisdom of Crowds by James Surowiecki
• Crossing the Chasm by Geoffery Moore
• Selling the Dream by Guy Kawasaki


This presentation is available in 3 parts in the
download area of

www.better-reality.com


Dankeschön!


Content Marketing + Market Segmentation

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