New Media, Marketing and Entrepreneurship

Well, Yes I have a problem.

I discuss Social Media with some of the established brains in the domain in India and have had discussions with Social Media thinkers sitting thousands of miles across the seven seas.

And now I do have a problem!

Before I put my problem down, let me put some questions for you to ponder upon:

• Almost every business today needs to reach out and the Internet becomes one of the best mediums. But does every business have the same objective in terms of (Branding, Outreach, Lead generation) etc.?
• Is it necessary that a solution which has worked for an IT company (as an example) would fit great for a BPO?
• Is it necessary that YOU as an Online marketing company would be able to understand everything from a product business to an IT to a BPO to a Chocolate product company?
• Is marketing universal and do the same rules apply for all on Social Media?

Well, now let me put forth my problem!

One of the biggest lacking points that I see with online marketing/ social media companies today is lack of good human resources. In my experience, you need three core and basic qualities to be even thinking of creating social media strategies for a business (client). These are:

1. Solid understanding of Business/ Products/ Services/ Industry
2. Solid understanding of the consumer who consume these products/ services online
3. Solid understanding of marketing

My experience of the industry says that majority of Social Media companies, talk about all the major tools and all the great jargons, but what they dont understand is how to customize a solution for the client. Each business (may be from the similar domain) will have a different set of problem statements to answer. Each business will have different objectives to achieve.

When so much is different, how can you just go along with jargons and pitch the same solution to each client?

I have interacted with many a Social Media people who if spoken to, would not have the required level of knowledge/ understanding of the product/ industry/ consumer behavior they are pitching to, but will keep circling around their choice of words which are: branding, positioning and lead generation (amongst the many others)

To scale up as a Social Media company – My way would be

The human resources that I recruit would surely have these three above mentioned qualities. Also, since time is an essential factor in the Internet business, I as a small company cannot afford to keep training my employees and wait for them to grasp business and start delivering. Hence what I need to focus on is getting the right people on board who take the ownership of work and understand the criticality of client delivery and execution.

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I am a Social Media Marketing evangelist and started my Internet career as a blogger almost 2 years back.

Since this time, I have connected with many people, from some of the best in the Internet domain to some real sharp entrepreneurs, who have given their comments on the various business models which startups and the established Internet/ Online companies are following.

Scale up or Shut Shop

Out of my interaction a couple of days back with a highly placed and successful Internet entrepreneur, a revelation jumped out, which in a way took me by surprise, as I was always present to it, but not really in the real sense of the action.

Over a cup of coffee, we discussed the following:

1. Is working with SME’s in India really that easy into Social Media?
   • Are they good paying customers?
   • Are they easy to grab?
   • Do they really have the time and resources?
2. How, many huge clients (some of the top companies in India and Abroad) are looking for all kinds of services into Social Media and are ready to pay for innovative and rewarding work

Now, I had this idea about how social media campaigns are made for these big fat clients, but never had someone who is doing it in real time, telling me, how much of it is true!

Thus came the BIG realization!

There are these big companies who are asking for partners in the online world, who could do some really innovative stuff. When I talk of innovation and results, I am in a way referring to the likes of Sunsilk Gang of Girls and TATA TEA Jaago Re.

But what I was not aware of was, trivial and almost commoditized offerings in Social Media as creation and seeding of content on the various Social Media channels, these BIG companies are asking for such services as well as an integral part of the offering and are paying good sums for the same.

Many small online marketing companies are offering the same set of services to their clients which represent the SME/ Startup space.

But would the business model sustain?

I am not saying NO, but surely I think its going to be very very difficult. Even if as an online marketing company your differentiation is the market that you are serving, you still have to consider that your market should be sustainable enough and you should have enough resources to crack the market. Some questions that you should answer:

1. How long is your sales cycle?
2. Do you have enough resources to hang onto your tables?
3. Is a low paying and yet more demanding market, the best way for you as a startup?

Moral of the story?

Am I saying that small online marketing companies would not sustain? Well, not really! But surely such companies would find it really hard to sustain. The model over a longer run is surely not sustainable. Moving up the chain and crossing over to the clientle, which is sustainable for your business, is an absolute essential.

Price war?

Not really, in my personal opinion, price is surely not a differentiating factor which smaller companies can establish and fight over. Otherwise the shark will surely eat away the smaller fish.

Finally

There is enough business around, all you need to do is create the right set of expectations with the client and deliver innovations which would help the client get a high over, through short term wins, and will also help you establish long term relationships with your high net worth client!

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I know, there aer going to be many a people who are going to rip this post off! After all for so many years banner advertising has been a proven model. People see it – People click it – and You sell!

Well, I am not here to contest or challenge. All that I want is to take your vision to a whole new space of marketing, which the marketers should look at.

During a discussion with one of my friends, this is what struck me and I call it – The WaterPond Marketing

In todays connected world, there are consumers all around you? And they are connected! Dont you forget that! Hence its possible that the person you just interacted with knows the others you are going to interact with, so you always need to project your “RIGHT SIDE”!

Now in this far and wide connected world, you cannot go to every other person and tell someone one thing and someone other the other story and want them to believe you. Other way round, they all would know what you spoke to about, to the first person as they are connected!

So you cannot go about running the same Banner Ads on all the sites, with a thought that the visitors on the site are prospects. Well, they might be and I certainly dont contest that, but you are trying to tell everyone who is already connected that this is ME and look at running these Ads for all the people on the site, which includes both the unique visitors and the Returning ones.

Its no longer smart to burn the note and push your way into the lead to reach to your customer

Your customer is anyway knowing about you from somewhere or the other and creating perceptions and taking decisions based upon the recommendations of his influential friends and known contacts.

So, essentially you are in a Pond of Water, which is filled with similar need mongers and this is the place you need to market.

So just burning your money, I dont think would make a lot of sense. Instead my advice would be, go connect and bring out the Zappos model, which simply is that every interaction is the best opportunity to delight the consumer and serve him right.

This makes the game easier and much focused and brings out the best in you each time and you dont wander around! Relating the same to the online world, I think Banner Ads and popups are making lesser of a sense today as the market dynamics and reaction levels are changing.

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