Market research shows that people spend more time on social-networking sites that on email. And it's not just youngsters - people of all ages join such networks and the numbers are increasing rapidly.
The experience of Toyota and Sony suggests that people using social networks are more likely to engage with brands than sceptics think. Moreover, the networks produce a powerful viral marketing effect because friends use them to tell one another about things they have discovered. Marketers have long known that such recommendations are hugely important in purchase decisions. This is the effect of word-of-mouth. All this is detailed in the special report.
The Economist's report also argues that social networks create significant marketing benefits, especially for small businesses. Using social networks can help them grow effectively.
It is evident that we trust those people who are closest to us: family, friends and colleagues. We respect, rely on and hear their opinion.
In the modern world consumers are very sceptical towards marketing messages and quite often ignore or simply do not notice them. Information clutter has done its job: it is increasingly difficult to stay distinctive, noticeable and gain consumers' interest. Even marketing and PR stunts no longer help as much.
Therefore, in such a context when consumer trust and attention is in high deficit, WoM marketing may be a solution. Its biggest advantage is that information moves among people who know each other. People pass information over to people they know more or less well. The level of trust in, and the impact of, such information will most likely be at its highest. The speed at which messages move among people may be a single drawback of WoM. However, this issue may be easily solved by IT.
A slowdown/crisis - any radical changes - make us rethink our lives and activities. They force us return to the basics. The current market situation may therefore be a good opportunity for marketing and communication people to remember or re-learn "forgotten" things, e.g. WoM marketing.
Crisis PR becomes the central element of corporate communication, says Andres Wittermann, Executive Vice-President for Europe, Middle East and Africa at LEWIS Global Public Relations, an independent global PR company. Therefore, PR plays an increasingly important role in crisis management.
Due to significant changes and uncertainty in all business sectors, crisis management becomes an important issue to both public sector and businesses. Social unrest in Lithuania in January has shown that communication is key when a crisis hits. PR experts agree that such social events could have been avoided should the politicians have properly communicated with the people.
No business organisation is immune to crises either. It does not have to be an accident at work or fire at a production facility. Leakage of commercially-sensitive information, rumours and even bankruptcy of a competitor - it all may attract undesired public and media attention and lead to a crisis.
As crisis manangement is currently a hot issue, we invited for our 6 February seminar, Integrate! Marketing Communication 2009, PR expert Andres Wittermann to share key crisis management and communication principles and best practice.
More information about the issues he will cover is provided in the seminar's programme.
This is good news for us, conference organisers. We are pleased that marketing people view events as a key channel to reach out to their customers and other target groups cost-effectively. The survey findings prove that conference sponsorship and attendance is a sound marketing investment that brings good returns.
The Economist Intelligence Unit asked chief marketing officers around the world which advertising mediums are the most important in meeting their companies' key marketing objectives today. Conferences and events are a clear leader mentioned by as many as 45% of respondents. Consumer/business magazines stand second with 33% and TV third with 30% of respondents. Newspapers and online content sites were mentoned by 24% of respondents.
The survey was conducted in early 2008 and its respondents included marketing executives from all over the world: mainly from Western Europe, Asia-Pacific and North America but also from Eastern Europe, Middle East and Africa, and Latin America.
The findings of the survey and its report is available from the Economist Intelligence Unit website.
A few pictures from the recently held Private Finance and Wealth Management Conference 2008.
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