Mobile Marketing by P83R4KN


                        Course Faculty: Mrs Yasmin Malik

                         Venue: IBA City Campus, Karachi

                   Course Start Date: Spring 2012 (Feb 1)

      MIS553: Mobile Marketing Strategies
Marketing: Traditional vs Mobile

   In traditional marketing, tracking and targeting are considered crucial to the
    success of your campaign
   Although these are sometimes discussed separately in traditional marketing
   In mobile marketing: the two must be considered together
   This is due to the very personal nature of the message and the increased
    ability to track your customers’ interaction via the mobile platform
   In many cases, it is the Operator which is in a very good position to provide
    targeting/segmentation related information to brands
   In mobile marketing:
      Targeting = both identifying key demographics and adapting your
        marketing message to their needs
      Tracking = any attempt to capture and evaluate data about the
        effectiveness of your mobile marketing campaign
    Targeting: Age and Gender

   According to a 2008 study by m:Metrics, the best demographics you can reach with
    mobile marketing is:
        Men between 18 and 34 years
        70% of iPhone users are Male (comScore 2009 study)

   Hold on: Women are still important!!

   A 2009 study called “Women and Digital Life” reported that females between 12 and
    24 years of age named their mobile phones as the most important piece of technology in
    their life
   Similarly, a 2009 Greystripe study showed that 43% of mothers are more likely to
    download mobile content and that 29% of iPhone owners are women with children

   In Pakistan: all Operators concede that gender cannot be established with 100%
    reliability due to multiple SIM usage and registrations
    Targeting: Income + ARPU

   Income or “spending power” in many ways determines how much mobile
    subscribers are willing to spend on mobile based advertising or usage
   Income can be associated with the Socio Economic Class (SEC) that a mobile
    subscriber belongs to: A, B , C etc. (where A is the highest income bracket
    and denotes “affluent” users)
   Related to Income is ARPU which is a direct measure of the mobile
    subscriber’s spend on his mobile connection on a monthly basis
   In general, mobile consumers in a high income bracket tend to rely more
    heavily on mobile content than those in the lower income scale (2009,
    comScore study)
    Targeting: Age, Gender & Income

   A 2008 iCrossing study showed that the largest portion of mobile market that accesses the
    mobile Internet is between the ages of 20 and 29:
More Sophisticated SMS Campaigns –
                           Stage 1: Early Dec
Case Study: Boots
   Campaign launched jointly between Boots
    and one UK based Operator “A”
   This method chosen because Boots was
    convinced that Operator A had a good
    user base for the type of product(s) they
    wanted to promote
   Campaign was launched purely on and by
    the mobile channel i.e. Operator A’s
   Target: Single women (i.e. late teens to mid
    20s) residing in London – relevant filters
    applied by Operator “A”
   Before receiving the initial Boots marketing
    message, the target mobile subscribers
    were asked for their consent to participate
   Everyone who replied “Y” was sent the
    initial targeted message (see screen shot
   Timing: Pre-Xmas period but carried out         Note: the campaign did include a link to Boots
    over 2 stages                                  mobile portal but was centered more on the idea
                                                       of an “SMS Dialogue” with participants
      Early Dec 2008
      Just before X-mas 2008
    SMS Case Study: Boots
                                                               Stage 1: Early Dec

   SMS were sent between 9 am and
    noon on a Saturday to coincide with
    the typical shopping trip timings
    associated with X-mas period

   Participants were given the choice to
    opt-out after receiving the Stage 1

   Only 1 in 4 opted to do so

   Those who opted in, were sent a
    targeted message in Stage 2 of the                 Note: Total response for Stage 1:
    campaign                                                          13%

                                            (Overall result: 1 in 7 Operator A users participated in
                                                               the Boots campaign)
    SMS Case Study: Boots
                                          Stage 2: Almost X-mas

   Stage 2 incorporated a split by

   But still concentrated on the
    “relationship” factor

   The same opt-out/opt-in choice was

   Total response rate for Stage 2 was
    SMS Case Study: Boots
                                                          Stage 2: Almost X-mas

   The campaign was designed to
    evaluate the appeal of people buying
    for themselves vs buying for their

   Generate awareness and sales of two
    new Xmas fragrance sets: Kate Moss
    and Diesel

   The campaign also highlighted the
    importance of timeliness i.e. Stage 2
    generated a better response as it was
    so much closer to X-mas

   Overall: 70% agreed to receive               Note: Men appear more tight-fisted
    follow up offers opening up a mobile    when it comes to spending on their partners…!
    CRM opportunity for Boots as well as
    for Operator “A”
Boots Case Study: Some Lessons

   The choice of Operator (“A”) was crucial to the success of the campaign
   Operator “A” had subscribers which matched Boots target market of single women
    in a certain age bracket in a given demographic
   Same point for single men in a certain age bracket/demographic for “Stage 2” of
    the SMS campaign
   Operator A had the ability to filter these requirements from within its subscriber
    base and the software to carry out and track these subscribers for the duration of
    the campaign
   In Pakistan, there is only one Operator which has in place an “Information
    Gathering & Refinement” project by which they can offer “Brands” a set of
    targeted subscribers to carry out mobile marketing campaigns
   As in the case of Boots, the “Brand” will define its target market and the local
    Operator will match that with its subscriber base
             Local Operator Target Profile (Shampoo)

                                         30 day active prepaid base
16-32 yr old individuals              (60% youth, 40% higher-age group)

Can we profile “shampoo”
users to any SEC/income                 ARPU segmentation (PKR 100+)
bracket?                                   Card reload > PKR 100
(Elicit the concept of buying

                                           Geographic segmentation                    Limit SMS campaign
                                 Top 10 urban cities (sorted by “Shampoo” sale)       to cities with highest
                                                                                      “shampoo” sales

                                Behavior/psychographics…Not applicable in this case
Local Operator Target Profile
(Broadband Service Provider)
  Urban youth 15-28 yrs                       30 day active prepaid base:
                                           (70% youth, 30% higher-age group)

  SEC A+, A, B                             ARPU segmentation (PKR 250+)
  (high buying power)                         Card reload > PKR 250

 Initial target market:                       Geographic segmentation
 Karachi                                        (100% users of KHI)

  - Young, energetic    - Avid GPRS user
  - Mobile
  - Tech savvy


     Customer profiling
    Targeting: Psychographic

   Psychographic data: that which refers to the mindset and values of a consumer:
       Lifestyle, ideals and behaviour
       Or “IAO” variables: interests, attitudes and opinion
   Harder to collect than demographic data and more difficult to quantify
   In 2009, Carol Taylor (Director of User Experience, Motricity Marketing) identified 5 types of mobile
       Up-to-date: driven to stay current with news, weather, events at all times – want real-time info and
        looked at as “beacons of information”
       Social and curious: “connectors” as they enjoy bringing others together, planning events/outings and
       Busy and productive: very concerned about info related to their own personal efficiency and their
        ability to cope with a busy schedule
       Latest and greatest: want to be the first to try something even if there is no guarantee that they will
        be satisfied with it – always want the newest technologies/apps/social networks
       Just the basics: not really interested in the phone, except for the fact that it makes life easier – not
        impressed with new technology – not early adopters and they look for others to review or try
        tools/apps etc before they think about using the same on their phone
    Operator-Driven vs Opt-in SMS Marketing

   In short-code based SMS campaigns, the entire campaign is Operator independent
   It is said to be more “Brand-driven”

   Profiling and targeting cannot be worked into the mechanics of the campaign as campaign
    participation is entirely dependent on mobile users texting in to the short code by their own
    free will

   Operator-driven SMS marketing can yield much better result as the filtering and profiling
    capability of the Operator allows the brand to target those mobile users who are most likely
    to participate and fit the target market of the brand

   However, profiling capability requires significant investment from the Operator in terms of
    filtering software (more on this later when we discuss local Operator case study)

   In Western markets, many Operators have very strong profiling capabilities and made active
    use of it as a service offered to brands for mobile marketing purposes

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