1	Understanding the Internet A New Way to Market & Brand We want to buy from you Do you want our business?
2	Preface Markets and technologies constantly evolve New professions are born; Old ones vanish It’s a normal, although can be a painful process You can try to adjust and go with the progress Or you can fight to hold onto familiar routines
3	Evaluation of the market control 50 years ago manufacturers had the upper hand. With more products to choose from retailers had the advantage to choose which products to sell, and demand the best prices from suppliers. Now the consumer is taking command.
4	"Market leaders can be changed..." Market leaders can be changed over night Some brands become stronger other disappear Sony, Apple, Nike, Gateway and others are having both websites and showrooms You can configure your car online and pick it up at dealership. Ford is spending 20% on online advertising. Costco have a website and internet kiosks at the warehouses.
5	New Economic Landscape OLD Risk averse (stability and consistency) Finance & capital are all-important Work activities standardized
6	"Yesterday:" Yesterday: command-and-control Information flows one way It breads arrogance, distrust and cynicism Today: champion-and-channel Information freely flows in all directions Healthy communications = trust and credibility
7	open up your mind, and let me step inside…
8	Fear and Loathing on the Web Diamond retailers feel a mixture of fear and anger They tell consumers Myths that alienate them:
9	How many people use the Net for research & then actually buy online?
10	"Once consumers learned & bought..." Once consumers learned & bought at the same time Now, for many, learning and buying are separate steps Ford: 8 out of 10 of buyers used the Net to decide what car to buy, & how much it will cost - before they visit a showroom
11	Pricescope Traffic Stats 5,000 – 6,000 new 1^st time visitors daily Diamonds sold online daily: less than 100 Less than 2% of Pricescope visitors buy from its online advertisers Successful Net vendors have top service & products Price is not the only issue There is still a huge potential for interaction with your customers
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13	Only 5% buy online. Blue Nile claims about 2.7% of engagement ring market Majority still want see and feel the items They want to talk to a real person Those who aren’t happy with the local service/products can find better service online Price is not the main issue
14	3/4 of your customers shop in the Net Ask how long they already research/shop Ask whether they’ve been in the Net Ask what they’ve found in the web Ask what sites and products they like in the web Don’t put them down or talk down to Internet is both yours and customers friend Take it from there.
15	The New Marketplace: Word gets around
16	"Mass media SEND messages one..." Mass media SEND messages one way In the Net we ignore ads We can speak back
17	Networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge
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19	Networked markets are getting smarter, more informed, more organized. - The Cluetrain Manifesto
20	People in networked markets know that they get far better information and support from one another than from vendors.
21	Marketing is a system to protect customers from seeing what is going on inside of your company
22	"Markets are networked person-to-person" Markets are networked person-to-person Getting smarter Deeply joined in conversation.
23	“Consumers won’t get less educated” – M. Rapaport
24	Your customers are talking to each other because other customers are the better source of information about your company.
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26	This may sound quite anti-business. It's not. Business is just a word for creating, buying and selling things. We are alternately the workers who create products and services, and the customers who purchase them.
27	Your markets are there. Where are you? What diamond industry is talking about? Branding, branding… Add Value Improve consumer confidence
28	Branding
29	"Companies now can to be..." Companies now can to be in touch with their customers individually and in real time. New concept of brand: encapsulation of actual, experienced value. This experience is determined through dialogue between producer and a customer. Real Time: Preparing for the Age of the Never Satisfied Customer. by Regis McKenna, 1999
30	“Know Thyself” Socrates USP - Understand why your offer is interesting, important, meaningful, etc -Then find a voice to tell people about it Don’t offer what you can not genuinely deliver; you’ll be found to be a fraud Know the difference between ‘remarkable’ and unremarkable The more ‘remarkable’ matters to you, the more infectious your enthusiasm
31	Marketing to Micro-Communities Proactive consumers – “Prosumers” Prosumers can represent 20% or so of any particular group - Euro RSCG’s nine-country study What they say to their friends about brands and products tends to become mainstream six to 18 months later. They vary by category: a wine prosumer, for instance, will not necessarily be a prosumer of cars. Such people reject traditional ads and invariably use the internet to research what they are going to buy and how much they are going to pay for it. Half of prosumers distrust companies and products they cannot find on the internet. If companies want to influence prosumers, they have to be extremely open about providing information.
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33	Adding Value What do your customers want? What is your value proposition?
34	Fighting Fear of Flying
35	Improve consumer confidence On each level of the industry from De Beers and manufacturers to grading labs, appraisers and retailers
36	"Make sure you read out..." Make sure you read out all the names of advertisers or they will kill you!!! Idea: Read them in order of B&M etailers, to pure play etailers
37	“Chat room-visiting jeweler finds bigger market online”- National Jeweler
38	Pearlman’s Jewelers 3,600 pages and photograph of couture jewelry Tactful and professional attitude toward customers Quick responses on customers requests Respect of the online communities
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40	Good Old Gold Tons of education All possible gadgets to evaluate diamonds Tons of information about each stone in inventory (about 200 stones) Many ideal cut rounds and cherry-picked fancies including branded cuts. Passionate about his gadgets and diamoods
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42	The Facets Collection Quality workmanship and diamonds (nothing less than G-H and VS2) Great guaranties and post sale support Competitive prices Ability to see the merchandize in NYC Respect in the online communities.
43	Winfield’s
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45	Los Angeles Vendor - loves the Ideal-scope! “...Next we went to European Jewelry Company. When I busted it out there, the guy said "I can't believe you have one of those, I use it to buy all of my stones!" …He educated my boyfriend with a branded H&A cut vs a stone with above average light return, …both of us easily picked out the naked eye difference. …now I feel totally comfortable buying from him! …there ARE good vendors in LA who will educate you about cut quality (some have had a hard time in the past)…. vendors I visited are already familiar with the Ideal Scope, or are very open to it. I was afraid people wouldn't like me using it, or would just think it was weird, but it was very well received!
46	Scary part is over. You can come out. It's safe. Your customers are creating this new marketplace. You're invited, but if you want to barter, get down off that camel! We are immune to advertising. Just forget it. If you want us to talk to you, tell us something. Make it something interesting for a change. You're too busy "doing business" to answer our email? Oh gosh, sorry, we'll come back later. Maybe. You want us to pay? We want you to pay attention. Your product broke. Why? We'd like to ask the guy who made it. We want you to take 100 million of us as seriously as you take one reporter from The Wall Street Journal.
47	"Realize what your niche and..." Realize what your niche and passion are What is your community, who you enjoy to talk to. Become a part of this community Talk to people about their interests and concerns. Share your passion. Try to make it interesting.
48	2 Web or not 2 Web It’s always a plus to have a website It should be professional It must contain useful information Selling in the web is a whole new biz Marketing your site can be expensive Find efficient ways to do that You don’t need a website to talk to your customers – use public forums Tell stories, answer questions, share your passion and develop your voice
49	"Professional design" Professional design Post useful information: education,, products’ info, policies, FAQ, KB, blogs Make it database driven, Combine with order processing and accounting Make sure online and phone requests are answered ASAP Automate as much processes as possible Check out www.interactwebinc.com
50	"Be nice." Be nice. Honey catches more flies, goodwill shines through – no nastiness & point scoring Be honest. Develop conversations fuelled by goodwill, etc Karma is key. But you already know that. No middle ground on this one, sorry. Listen. Tongues are dumber than brains, brains are dumber than ears, etc. Vision: Believe in something & express it
51	"80%" 80% of your customers visit the web 5% buy online; But this will grow, with or without you Price is not the main issue, Trust & mutual respect are Stop fearing the web - learn how to use it Meet your customer there, find your voice now Develop a vision, commit to what you do best & constantly improve Remember: Trust = Brand = Added Value
52	“As your attorney, I advise you to drive at top speed.” - Dr Gonzo