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Rethinking Marketing

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Roland T. Rust, Christine Moorman, and Gaurav Bhalla:

Imagine a brand manager sitting in his office developing a marketing strategy for his company's new sports drink. He identifies which broad market segments to target, sets prices and promotions, and plans mass media communications. The brand's performance will be measured by aggregate sales and profitability, and his pay and future prospects will hinge on those numbers.

What's wrong with this picture? This firm--like too many--is still managed as if it were stuck in the 1960s, an era of mass markets, mass media, and impersonal transactions. Yet never before have companies had such powerful technologies for interacting directly with customers, collecting and mining information about them, and tailoring their offerings accordingly. And never before have customers expected to interact so deeply with companies, and each other, to shape the products and services they use. To be sure, most companies use customer relationship management and other technologies to get a handle on customers, but no amount of technology can really improve the situation as long as companies are set up to market products rather than cultivate customers. To compete in this aggressively interactive environment, companies must shift their focus from driving transactions to maximizing customer lifetime value. That means making products and brands subservient to long-term customer relationships. And that means changing strategy and structure across the organization--and reinventing the marketing department altogether.

Brokers have a great opportunity to build AND own their marketing platform today, via a single entry system, blogs, a branded iPhone app and active cultivation of their clients via a pervasive CRM system, like Main Street.



Morgan Stanley's Latest: The Mobile Internet Report:

Our global technology and telecom analysts set out to do a deep dive into the rapidly changing mobile Internet market. We wanted to create a data-rich, theme-based framework for thinking about how the market may develop. We intend to expand and edit the framework as the market evolves. A lot has changed since we published "The Internet Report" in 1995 on the web.

We decided to create The Mobile Internet Report largely in PowerPoint and publish it on the web, expecting that bits and pieces of it will be cut / pasted / redistributed and debated / dismissed / lauded. Our goal is to get our thoughts and data into the conversation about what may be the biggest technology trend ever, one that may help make us all more informed in ways that are unique to the web circa 2009, and beyond.

Our key takeaways are:

Material wealth creation / destruction should surpass earlier computing cycles. The mobile Internet cycle, the 5th cycle in 50 years, is just starting. Winners in each cycle often create more market capitalization than in the last. New winners emerge, some incumbents survive - or thrive - while many past winners falter.

The mobile Internet is ramping faster than desktop Internet did, and we believe more users may connect to the Internet via mobile devices than desktop PCs within 5 years.

Five IP-based products / services are growing / converging and providing the underpinnings for dramatic growth in mobile Internet usage - 3G adoption + social networking + video + VoIP + impressive mobile devices.

Apple + Facebook platforms serving to raise the bar for how users connect / communicate - their respective ramps in user and developer engagement may be unprecedented.

and, via Fortune:

"Apple has a two or three-year lead" according to Katy Huberty, thanks to an installed base of 57 million handsets, 100,000 apps and 200 million iTunes subscribers with credit card numbers on file. (She will keep her eye, however, on Samsung, Nokia (NOK) and Google's (GOOG) Android.)

But much of the presentation was spent showing, in slides culled from research over the past two and a half years, that the iPhone is not like previous mobile devices, and its owners not like ordinary cell phone users.

For example, although iPhone and iPod touch owners represent only 17% of the global smartphone installed base, they account for 65% of the world's mobile Web browsing and 50% of its mobile app usage (see chart below).

Key Virtual Properties assets to help you take advantage of the mobile explosion:

Jean-Louis Gassee:

With this in mind, unlike most opining individuals above, I went to a Verizon store and paid my own money to get a Droid. I did this on the very Droid-day, Friday November 6th, at the University Avenue Verizon store in Palo Alto, around 11:30 am. No line, I waited two minutes for a salesperson, a simple transaction as I already have a Verizon account. The activation turned out to be just a bit more problematic: 'Too much traffic' said the sales gent. I left the phone with him, went back to my office one block away. When I returned by lunchtime, everything was in order. Easy enough.

I've used the Droid for a week now and my own take doesn't deviate much from what early reviews led me to expect.

As happens time and again, I hit the difference between a feature set, a check-list, and the user experience. For example, the keyboard and the camera.

The Droid's camera sports more pixels, 5 million, vs. the iPhone's 3.2 million. But, as reviewers pointed out, and as I can confirm, the Droid's pictures are mediocre. As discussed here, megapixel numbers are often misleading. And it looks like the iPhone's firmware also provides better selective focus and image processing.

As for the slide-out keyboard, I find it hard to use. Actually, it feels harder to use that the one on the original T-Mobile Gphone, the G1 I bought a year ago. The two phones are clearly related, similar keyboard arrangement, similar UI (User Interface); the Droid is more refined, thinner, it runs a newer, better Android release.

The Profit and Peril of Mashups

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What is a "mashup"? According to this wikipedia entry, "In web development, a mashup is a web page or application that combines data or functionality from two or more external sources to create a new service."

Real estate brokers and agents may wish to take advantage of "free" internet api's (application programming interface). Websites such as flickr, facebook, youtube, yelp and many others offer programatic interfaces to their data and media.

What are the benefits of such API's?

  • Aggregate local information around properties for sale or rent.
  • Enhance your website "experience".
  • Avoid the cost of collecting and managing local information.
What are the costs and risks of using such API's?
  • Bad data. Automated information aggregators often lack local expertise. Information may be outdated; a long closed restaurant may still have a review on your website.
  • Inappropriate content. I created a Facebook demonstration for a client some time ago. The resulting page included an advertisement for Filipino Girls.
  • What motivates the data aggregator? Is their strategy aligned with yours?
  • Does the data make your site more generic?
  • Competitive stealth advertising on your site. Savvy competitors will figure this out and place their content on your site via the API's.
What are the alternatives to "mashups"?

Your agents have a wealth of local market knowledge. Hire or appoint a "blog-o-spondent" or "blogger-in-chief". This person creates and aggregates your own content (text, audio, video, maps) on your blog, around your website(s) and via appropriate social networks. Over time, agents and staff post directly and incorporate your listings, services and our unlimited use maps (for a fixed price). Create your own platform that emphasizes your brand. This approach improves recruiting, retention and internet marketing in ways that you control and at a much lower cost than traditional advertising.

Main Street reliably supports the tools you need, from blogs, dynamic short links, lead management, surveys and multimedia to market reports and live charting tools.

As always, there is no "free lunch".

Mary Meeker, Scott Devitt & Liang Wu [1.5MB PDF]:

Mary Meeker, Scott Devitt & Liang Wu [1.5MB PDF]:
Financial Market + Economy Update / Dashboard
  1. Financial Markets Have Rebounded, Technology Sector = Relatively Impressive.
  2. Leading Economic Indicators Seem to Have Turned Corner, Coincident / Lagging Indicators Still Weak.
Mobile = Incremental Driver of Internet User / Usage Growth
  1. Mobile Internet Usage Is and Will Be Bigger than Most Think.
  2. Apple Mobile Share Should Surprise on Upside Near-Term.
  3. Next Generation Platforms (Social Networking + Mobile) Driving Unprecedented Change in Communications + Commerce.
  4. Mobile in Japan + Desktop Internet Provide Roadmaps for Mobile Growth + Monetization.
  5. 3G Adoption / Trends Vary By Geography.
  6. Carriers in USA / W. Europe Face Surging Network Demand But Uncertain Economics.
  7. Regulators Can Help Advance / Slow Mobile Internet Evolution.
  8. Mobile-Related Share Shifts Will Create / Destroy Material Shareholder Wealth.


Virtual Properties latest broker branded iPhone app is now available. Contact us to learn more: zellmer@virtualproperties.com Virtual Properties provides a number of real time, mobile tools, including its 2nd generation iPhone app, mobile public websites and Main Street intranet tools.

MG Siegler:

Last night, I was out with some friends in search of a particular bar. Naturally, we did the 21st century equivalent of asking a gas station attendant for directions, we pulled out our iPhones to look it up in the Maps application. The result was odd; the bar we were looking for was there, but there was another result in the same spot, labeled as "User-created content."

Yesterday, Search Engine Land noted that sponsored links (ads) are starting to show up in the Maps application on the iPhone. It would appear that Google is slowly adding some new features. But what's odd is that these features are showing up without warning, and, as far as I can tell, without a way to turn them off.

While clearly, Google is not going to let you turn off sponsored links, the user-generated content element is odd. These pins show that some random person I don't know was at the place I'm looking for, at some random time. It's simply not useful at all.

I also wonder how Apple, which loves to have total control of its devices, feels about these additions. Google helped Apple build the default Maps application, but it is still one of Apple's own apps and now it seems that Google can simply inject any content it wants into Maps from its end. Also a bit odd is that this particular piece of user-generated content comes from the location-based social network Plazes, which is owned by mobile rival Nokia.

Control your map content and reduce costs with ReData maps from Virtual Properties. Includes a branded iPhone app - version 2 out soon.

Appland: How smartphones are transforming our lives

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Richard Fisher:

My wife is standing at the door to the bathroom, watching me time my toothbrush routine using an application downloaded to my iPhone. Thirty seconds on upper-right molars: done. "What are you doing?" she asks. "Nothing," I mumble through a mouthful of toothpaste. She doesn't speak, but her eyes say "I think I love you a little less." If only she understood

Ever since I bought an Apple iPhone, I have been hooked on apps (see "What's app, Doc?"). Apple's App Store is a virtual shopping mall with all the shopaholic joy of a real mall but none of the annoying teenagers. It is packed to the virtual rafters with thousands of downloadable software tools. Admittedly, the store makes a bad first impression on many people, with novelty apps such as lightsabres dominating the top 25 chart. But dig a little deeper and you will find life-enhancing riches.

I confess that I now turn to the App Store in almost every situation. In unfamiliar places, I use apps to find the nearest gas station, cinema or even public toilet. I track the length and time of my commute. All my gym workouts are logged. Finding a nice place to eat while on the move is a cinch. Even this article is brought to you thanks to a voice recorder app (iDictaphone) that I used for recording interviews, and one that helped me "mind map" my thoughts when planning it out. Sometimes I daydream about becoming the most virtually enhanced human in the world.

Virtual Properties released a location based (GPS HomeFinder) real estate broker/agent branded iPhone app earlier this year. An update will be available this fall. Our clients have deployed mobile websites as well, ranging from straightforward support for many phones to sophisticated smartphone sites.

These mobile applications use GPS and mapping data. We offer detailed, frequently updated maps and satellite imagery for a fixed fee. This means our clients can grow applications and volumes without paying more - an important factor in today's market. (Search engine map fees are based on usage - the more you use, the more you pay). Contact us at 608 271 9601 or zellmer@virtualproperties.com to learn more.

Smartphone Sales Grow 27% in Most Recent Quarter

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gartner82009.jpg
Gartner:

Worldwide mobile phone sales totalled 286.1 million units in the second quarter of 2009, a 6.1 per cent decrease from the second quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 40 million units, a 27 per cent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (see Table 2).

"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner. "Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."

Virtual Properties supports real time Main Street mobile websites and a branded iPhone / iPod Touch app (with no per transaction or page load mapping fees!). Brokers and agents should use these sites and apps to become familiar with the mobile environment. Things that may work on a link heavy home page or website often get in the way in a mobile environment. Very few devices actually work well with mobile websites.

Real Time Information Execution Benefits

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Don Sull:

Execution starts with when a team or organization forms a shared understanding of the market situation. A start-up's business plan and an established company's strategy are both examples of what I call mental maps, shared models that represent reality and serve to guide action. Mental maps can range from detailed plans in thick binders to a simple insight sketched on a cocktail napkin. Differences in form should not obscure similarity in role-all mental maps represent the environment, highlight important variables, and suggest a way forward.

Even the best mental map is an imperfect representation. Mental maps can only incorporate current knowledge, and exclude new insights that will only emerge in the future. Maps simplify a complex reality, thereby ignoring potentially important variables and interactions. Competitors will go out of their way to exploit blind spots in any map. We know only one thing about our maps with certainty-they are flawed.

How can leaders update imperfect mental maps as circumstances shift? An important part of the answer lies in collecting the right type of information. Along with my co-author Stefano Turconi, I have been studying the type of data required to map a situation in flux, and identified four critical attributes: The best information is real time, unfiltered, shared, and holistic. My next few posts will discuss each in turn, beginning with real time.

Main Street, a real time internet system for agents, clients and brokers, was designed from day one to be your comprehensive information source. One, real time system is an asset (arguably your most valuable asset) that allows your organization to implement and execute new initiatives faster than brokerages mired in information spaghetti. Related: Both sides now.

This week's news that iPhone and iPod Touch sales now exceed 37 million units provides a fresh reminder that times of economic transitions present new business opportunities. AdMob's March, 2009 mobile traffic data is also worth a look:

AdMob has released its monthly Mobile Metrics Report for March, and to no one's surprise, the iPhone and iPod touch are still hot devices [iPhone demographics] for surfing the web on the go. Both are also hot devices for using mobile apps, too, as AdMob says that over half of the requests for ads from iPhones now come from third-party apps.

Worldwide, the iPhone continues to gain a significant share of mobile requests on AdMob's network. While Symbian-based devices, mostly from Nokia, continue to lead, the iPhone is catching up, mostly to Symbian's detriment. In the US, the iPhone still holds half of all requests for mobile ads compared to devices based on other OSes.

Our clients quickly deployed branded iPhone applications over the past few months. They avoided adding complexity to their business and staff, dealing with yet another vendor and system and moving data around. It just works.

One put it this way earlier today: "Dang, that's a beautiful app!"

Find out how quickly you can take advantage of today's fastest growing technology platform. Contact me, Jim Zellmer zellmer@virtualproperties.com or voice +1 608 271 9601.

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