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Executive Adviser

Feature, Marketing

The Secrets of Marketing in a Web 2.0 World

By Salvatore Parise, Patricia J. Guinan and Bruce D. Weinberg

December 14, 2008

Consumers are flocking to blogs, social-networking sites and virtual worlds. And they are leaving a lot of marketers behind.

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For marketers, Web 2.0 offers a remarkable new opportunity to engage consumers.

If only they knew how to do it.

Illustration by Peter & Maria Hoey

That’s where this article aims to help. We interviewed more than 30 executives and managers in both large and small organizations that are at the forefront of experimenting with Web 2.0 tools. From those conversations and further research, we identified a set of emerging principles for marketing.

But first, a more basic question: What is Web 2.0, anyway? Essentially, it encompasses the set of tools that allow people to build social and business connections, share information and collaborate on projects online. That includes blogs, wikis, social-networking sites and other online communities, and virtual worlds.

Millions of people have become familiar with these tools through sites like Facebook, Wikipedia and Second Life, or by writing their own blogs. And a growing number of marketers are using Web 2.0 tools to collaborate with consumers on product development, service enhancement and promotion. But most companies still don’t appear to be well versed in this area.

So here’s a look at the principles we arrived at—and how marketers can use them to get the best results.

Don’t just talk at consumers—work with them throughout the marketing process.

Web 2.0 tools can be used to do what traditional advertising does: persuade consumers to buy a company’s products or services. An executive can write a blog, for instance, that regularly talks up the company’s goods. But that kind of approach misses the point of 2.0. Instead, companies should use these tools to get the consumers involved, inviting them to participate in marketing-related activities from product development to feedback to customer service.

Getting Sociable
  • A New Approach: Marketing these days is more about building a two-way relationship with consumers. Web 2.0 tools are a powerful way to do that.
  • The Pioneers: A growing number of companies are learning how to collaborate with consumers online on product development, service enhancement and promotion.
  • The Lessons: From these early efforts, a set of marketing principles have emerged. Among them: get consumers involved in all aspects of marketing, listen to and join the online conversation about your products outside your site, and give the consumers you work with plenty of leeway to express their opinions.

How can you do that? A leading greeting-card and gift company that we spoke with is one of

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This article was printed from MIT Sloan Management Review online: http://sloanreview.mit.edu/executive-adviser/2008-6/5068/the-secrets-of-marketing-in-a-web-20-world/

9 comments on “The Secrets of Marketing in a Web 2.0 World”

  1. While marketers like Proctor & Gamble privately bemoan Facebook’s inability to convert social capital into brand equity, upstarts like Twitter are poised for a surprising revenue story.

    Why?

    Occasions-based marketing. Twitter enables marketers to reach consumers with bite-sized suggestions that match the mood and the moment.

    We launched http://www.dncbloggers.com to coincide with the DNC Convention, and quickly followed up with applications for fantasy sports at http://twitter.com/ffootball. While the Democratic faithful loved hearing about the latest Barack Obama news, fantasy footballers understand the importance of getting real-time information that helps them make valuable add/drop or start/bench decisions. We assert these are valuable proxies for the way younger consumers think about brands.

  2. Web2.0 is a great platform for finding your target audience and connecting to it. “Building a tribe”, how Seth Godin puts it.

    Twitter is a great example. It helps tracking real-time conversations and react within the short attention span window.

    We, at http://www.5pmweb.com found it very useful to connect to our users and potential clients. It works much better than trying to send a bunch of surveys or putting together a focus group (did the last one ever work?).

  3. With so many tools and technologies out there, how does one differentiate oneself? How do you translate noise to signal?

    Through relationships. Its a proven concept and web2.0 is nothing but creating relevant relationships with many more people across the globe through these various tools.

    This is what we are trying to do at DeskAway.com. Leveraging tools to create meaningful 2-way conversations with our prospects and customers.

  4. When discussing how marketers don’t get web2.0, I’d be thrilled if someone differentiated between traditional marketers, or in-house marketers and agencies. I’ve run campaigns on MySpace, YouTube, Facebook, and Twitter, done blogger seeding, etc. I “get” web2.0.

    Of course you’re right when you talk about corporate marketers not getting it. I say over and over that they are still trying to apply 19th and 20th century marketing models to 21st century technology and users behavior.

    They don’t even need to “get” it. They just have to start listening to those that do.

    Michael
    http://www.mdurwin.com

  5. It is thrilling that someone has documented “best practices” for Web 2.0. I doubt anyone well disagree that online marketing is a hot, debated topic for many reasons. Effectiveness is one of if not the most prevailing topic that is being seriously deliberated.

    I believe that it is not a matter of whether it is an effective means of marketing as there are certainly enough success stories to prove this. The technology is evolving quickly as is the understanding of how to communicate and market in the virtual world. The next stage is developing more precise tools and techniques to directly reach the appropriate communities of consumers.

    If the conversations that I am having with my clients are any indication, it is likely that more companies will explore online marketing applications and virtual brand building efforts. Conversations hover around the idea that this way of communication is a new, modern, combined, potentially powerful form of PR and two-way Direct Response with a the ability of consumers to share their thought and ideas. It is a two-way marketing highway allowing real-time conversations with, to and between large amounts of consumers.

    One of the biggest concerns that I hear from my clients is related to the loss of control. Most of them are used to unidirectional messaging and controlling the public distribution of information. To brands, who have this concern, my retort is that your consumers are going to talk about your product or service, regardless. So, I ask them to think about “if there business is better off participating in Web 2.0?” If the answer is yes, than figuring out how much and what level is the next step.

    This is truly a new marketing frontier that will continue to change. I enjoyed the perspective and look forward to reading more about this topic.

    Phill Barufkin
    http://twitter.com/PhillBarufkin

  6. t is thrilling that someone has documented “best practices” for Web 2.0. I doubt anyone well disagree that online marketing is a hot, debated topic for many reasons. Effectiveness is one of if not the most prevailing topic that is being seriously deliberated.

    I believe that it is not a matter of whether it is an effective means of marketing as there are certainly enough success stories to prove this. The technology is evolving quickly as is the understanding of how to communicate and market in the virtual world. The next stage is developing more precise tools and techniques to directly reach the appropriate communities of consumers.

    If the conversations that I am having with my clients are any indication, it is likely that more companies will explore online marketing applications and virtual brand building efforts. Conversations hover around the idea that this way of communication is a new, modern, combined, potentially powerful form of PR and two-way Direct Response with a the ability of consumers to share their thought and ideas. It is a two-way marketing highway allowing real-time conversations with, to and between large amounts of consumers.

    One of the biggest concerns that I hear from my clients is related to the loss of control. Most of them are used to unidirectional messaging and controlling the public distribution of information. To brands, who have this concern, my retort is that your consumers are going to talk about your product or service, regardless. So, I ask them to think about “if there business is better off participating in Web 2.0?” If the answer is yes, than figuring out how much and what level is the next step.

    This is truly a new marketing frontier that will continue to change. I enjoyed the perspective and look forward to reading more about this topic.

    Phill Barufkin is a strategist, planner and researcher who works with businesses to deploy integrated marketing programs.

    Phill Barufkin

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