RIP traditional marketingby
19th May 2010
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A massive 95% of consumers have no faith in advertising, while only 8% believe what organisations say about themselves, leading to almost $426 billion being wasted on ineffectual advertising activity over the last year alone.
These are the findings of a report entitled 'Your Brand: At Risk or Ready for Growth?', which was written by Professor Michael Hulme at the Institute of Advanced Studies at Lancaster University and commissioned by CRM software provider Alterian.
The study found that a mere 4% of UK and 6% of US customers trusted advertising messages, while only 9% of UK and 6% of US consumers felt there was any truth in how brands portrayed themselves.
In contrast, 31% of UK and 35% of US respondents who were actively engaged in social media believed that the companies they interacted with were 'genuinely interested' in them.
David Eldrige, Alterian's chief executive, said: "The report highlights that the majority of marketers are simply not hitting the right note with their target audience. Consumer trust is at an all-time low."
Because we were moving into an "era of individualisation", it was no longer enough for brands to adopt a strategy of mass broadcasting and one-way conversations. Instead they should try to understand "communities" rather than focus on siloed communication channels, he added.
"Traditional marketing is dead. To know and communicate to individuals, to a specific individual, should be the strategic and tactical goal of all brands and organisations. This will present the number one marketing and wider business challenge over the coming decade," Eldridge said.
The study also indicated, however, that 58% of the companies questioned did not have a social media strategy in place due to a lack of board level support.
But Professor Hulme said that meeting the challenge of 'individualisation' would require new thinking in the collection of customer information to enable organisations to interact with them at a more personal level.
"This will call for a commitment from the business to both structural and skill changes, arising from the need to break down silos, both departmentally and functionally, to address the 'single view' of information, but also to understand how the information is being used at any one time across the organisation," he added.
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