Understanding the Internet
A New Way to Market & Brand

We want to buy from you

Do you want our business?

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

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.

"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.

New Economic Landscape

OLD

Risk averse (stability and consistency)

Finance & capital are all-important

Work activities standardized

"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

open up your mind, and
let me step inside…

Fear and Loathing on the Web
Diamond retailers feel a mixture of fear and anger
They tell consumers Myths that alienate them:

How many people use the Net for research & then actually buy online?

"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

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

Slide 12

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

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.

The New Marketplace: Word gets around

"Mass media SEND messages one..."

Mass media SEND messages one way

In the Net we ignore ads

We can speak back

Networked conversations are enabling powerful
new forms of social organization and knowledge exchange to emerge

Slide 18

Networked markets are getting smarter, more informed, more organized.
- The Cluetrain Manifesto

People in networked markets know that they get far better information and support from one another than from vendors.

Marketing is a system to protect customers from seeing what is going on inside of your company

"Markets are networked person-to-person"

Markets are networked person-to-person

Getting smarter

Deeply joined in conversation.

“Consumers won’t get less educated” – M. Rapaport

Your customers are talking to each other because other customers are the better source of information about your company.

Slide 25

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.

Your markets are there. Where are you?

What diamond industry is talking about?

Branding, branding…

Add Value

Improve consumer confidence

Branding

"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

“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

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.

Slide 32

Adding Value

What do your customers want?

What is your value proposition?

Fighting Fear of Flying

Improve consumer confidence

On each level of the industry from De Beers and manufacturers to grading labs, appraisers and retailers

"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

“Chat room-visiting jeweler finds bigger market online”- National Jeweler

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

Slide 39

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

Slide 41

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.

Winfield’s

Slide 44

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!

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.

"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.

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

"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

"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

"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

“As your attorney, I advise you to drive at top speed.” - Dr Gonzo


	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


	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.


	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.


	OLD

	Risk averse (stability and consistency)
	Finance & capital are all-important
	Work activities standardized


	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


	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


	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


	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


	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.


	Mass media SEND messages one way
	In the Net we ignore ads
	We can speak back


	Markets are networked person-to-person
	Getting smarter
	Deeply joined in conversation.


	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.


	What diamond industry is talking about?
	Branding, branding…
	Add Value
	Improve consumer confidence


	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


	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


	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.


	On each level of the industry from De Beers and manufacturers to grading labs, appraisers and retailers


	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


	3,600 pages and photograph of couture jewelry
	Tactful and professional attitude toward customers
	Quick responses on customers requests
	Respect of the online communities


	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


	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.


	“...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!


	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.


	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.


	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


	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


	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


	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