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Digital Marketing

By: Andrew Videira, Adrienne Davis, Ashley Boyce, Alison Cifrese, Amanda Kahn, Janet Kim and Andrea Reichert
Posted: June 10, 2013

Editor’s note: The 2013 graduates of the cosmetics and fragrance marketing and management master's degree program at the Fashion Institute of Technology (FIT) in New York presented their Capstone presentations at the Beauty in a Digital World event, sponsored by Beiersdorf USA with research partner Google, at FIT’s Morris W. and Fannie B. Haft Auditorium in June.
The following white paper accompanied the presentation from group leader Andrew Videira, co-leader Adrienne Davis, and group members Ashley Boyce, Alison Cifrese, Amanda Kahn, Janet Kim and Andrea Reichert.


With the birth of advertising in the 1880s, beauty marketers practiced Marketing 1.0—product-centric marketing with a mass approach to communication based on a “one to many” model for maximum efficiency (Kotler, P). Over the next 30 years, as more competition entered the market place, beauty marketers focused on building relevant, emotional connections between brands and consumers. This new form of marketing was an evolution and marked the dawning of Marketing 2.0. However, in both Marketing 1.0 and 2.0, marketers were talking at consumers, not with them. Media channels available at the time never allowed anything beyond talking at consumers. Now, the dawning of the digital age has changed the “social contract between brands and consumers.” (Keller, A.). The expectation of the relationship between brands and people has become far more intimate. We have entered the age of Marketing 3.0—the age of human centric marketing. In this new marketing era, the goals of a marketer remain consistent—marketers must tell stories to create meaningful connections between brands and people. What has changed in this new era are the significant amount of touch points, ease of access, and speed of action that marketers can utilize. In the era of Marketing 3.0, the lines between channels are blurring and the connectivity between brands and consumers is 24/7. As technology continues to evolve, communication touch points will be interactive, interconnected, zero-friction, and on-demand. To be effective, marketing can no longer be done in silos—marketing campaigns must tell stories across platforms, not just in them. This requires a new framework to help marketers continue to build brand affinity with their consumers. Enter the m^3 model.

m^3 model

The m^3 model is a framework to help marketers navigate the human-centric world of Marketing 3.0. The model is defined as:

micro-Targeting + micro-Engagement = micro-Marketing

micro-Targeting = using advanced predictive analytics to cultivate deep human understanding of individual consumers.

micro-Engagement = constant, on-demand two way communication between brands and consumers where and when consumers want it.

micro-Marketing = creating campaigns with the illusion of personalization that combine the learnings from micro-targeting with the continuous access of micro-engagement to serve up the right content to the right individual, at the right time.

The m^3 model helps brand marketers to more effectively communicate with consumers by leveraging new advances in technology and redefine success with new measurement indicators. To optimally structure a marketing organization to execute the m^3 model, there must be changes within the marketing team, and with its cross functional partners. All teams involved in bringing the product to market and bringing the brand to life must commit to the model to reach success.

Evolution of Media

One of the consequences of the evolution of the digital landscape has been the change in what consumers expect from brands. Consumers expect brands to understand them, engage with them, and to reflect values that they can connect with on a personal level. This new, high level of interactivity and connectivity is made possible by advanced technology and the evolution of traditional media channels.

In the worlds of Marketing 1.0 and 2.0, brand communication was “one to many”—assets developed for generic target groups run on traditional, static channels. In Marketing 3.0, brands can engage in a “one to one” approach to communication with individual consumers in an on-demand, zero-friction environment through the use of advanced media platforms.

Successful brands in this environment will create flexible communication which responds and adjusts to consumer feedback in real time. This feedback is made possible by advanced analytics tools that collect and interpret the vast amounts of data that individual consumers generate within the digital space. Brands will have a deeper understanding of consumers that will allow them to predict the desires and aspiration of individuals. With this learning, enabled by new technology, brands can be both predictive and reactive, delivering a humanized brand experience for their consumers.

The practice of micro-Targeting is the first step in executing these new experiences effectively. Using the data generated by consumers, brands can focus their strategies on individuals that are the most valuable for them. Additionally, data analytics will result in insights that can inform asset development and campaign strategy. From there, brands can use this data to help form their micro-Engagement strategies and the new media touch points available to engage with consumers where they want, when they want, at the moments that matter most. Information gained from these engagements will be used to optimize future engagements in real time, resulting in communication that is increasingly effective at each consumer interaction. The evolution in media channels and technology makes micro-Marketing possible and will enable micro-Targeting and micro-Engagement tactics to result in effective micro-Marketing campaigns. In the era of Marketing 3.0, all media is interactive and personalized. There is no distinction between “digital channels” or “social media”. All media is digital and all channels are social. This is already beginning to happen with the evolution of smart phones and smart tablets. The critical shift for marketers is to ensure that their marketing campaigns can adapt to these new media opportunities, resulting in seamless, on-demand, personalized campaigns, increaing an individual consumer’s brand love and loyalty.

The shift from traditional to new media does not mean that traditional channels such as print and TV should be removed from marketing plans (Millward Brown). These traditional channels will also be part of the evolution of media and they too will become ‘smart,' interconnected and interactive, collecting data and feedback on individual consumers that brands can leverage in their new campaigns. To achieve interactivity and personalization, brands will create ad templates with multiple versions for different consumer groups and through the use of advanced algorithms, can create a seemingly personalized campaign, resulting in the right content delivered to the right individual every time (Whittlake, E.). Agencies like Media Mind are already beginning to make this a reality for marketers. However, to take communication to a micro-Marketing level, marketers will need to use advanced monitoring tools to collect data from consumer engagements across all touch points and quickly optimize assets for maximum effectiveness.

In order to make m^3 a reality, brands must brief their creative agencies differently, focusing on flexibility and adaptability. If flexibility is included in the briefing process from the beginning, these ad templates will not seem like a distant concept; instead, they will be an achievable reality. By incorporating the creative agency, the digital minds, and the analytical experts at the point of conception of the media campaign, it will ensure the creation of a fully integrated, completely seamless, entirely zero-friction campaign across multiple platforms.

Evolution of Measurement

The evolution of success measurement is critical in effectively executing the m^3 framework into strategic brand management. In a world where marketing campaigns are constantly monitored and optimized in real time, success metrics must evolve to embrace this new mindset. Brand marketers must shift their focus away from traditional return on investment (ROI) metrics, such as reach, gross ratings points (GRPs) and click-thru rate. These metrics are static and historical in nature, largely because the channels in which they were developed did not allow for real time optimization, only post-launch evaluation. In the m^3 model, the new metric is Return on Learnings (ROL). This represents a major shift in marketing success measurement, and is a necessary next step to ensure successful marketing in the m^3 model. It has been widely discussed by business experts and beauty industry leaders that marketing attribution enables stronger budget allocation and bigger returns (Google Analytics). Imagine if a brand could monetize the attribution path of a consumer to understand how each engagement works independently or together within the context of a plan to drive value for consumers. Soon you will no longer need to just imagine this7mdash;as this technology is in development already. To capitalize on this opportunity, brands need to reallocate resources to ensure a stronger focus on analytics to better work with the data they currently receive from consumers. Armed with information on where consumers are entering and exiting the selling model, marketers can change the way they do business (Fast Company). With this new ROL approach, and the necessary analytics tools to support it, marketers will be able to track unique consumer value over her lifetime and understand the most critical points that drive future sales at the individual consumer level.