Sifting Through The Noise

Do you wake up each morning at the same time? Eat the same food for breakfast? Chances are most of you follow some form of routine. And what is a routine but a series of patterns. Some of which are useful and efficient, while others form bad habits.

Our brains our geared to make and identify patterns. From the moment we are born, we learn to recognise simple patterns such as crying leads to being fed. As children, we learn that good behaviour earns rewards. By the time we are adults, we have learned to rely on these complex patterns to help us do everything from the simplest actions like choosing what to wear in the morning, to making complex decisions about what kind of health insurance is the best policy.

This semester in Research and Decision-Making we’ve been studying the different mechanisms involved in the decision-making process along with a range of biases that can assist with making effective judgements; however there are many challenges and pitfalls to be aware of.

Having too much information.

Otherwise known as information overload. When there is too much information our brains filter out the majority of it using shortcuts. “An overload of information can leave you confused and misguided, and prevents you from following your intuition,” according to Corporate Wellness Magazine.

For simple decisions we use heuristics or ‘rules of thumb’. Heuristics apply practical methods, that aren’t necessarily guaranteed to be perfect, but serve short term goals. They are also a great mental shortcut to ease the cognitive load. These can be educated guesses, intuition and even common sense. For example, if I’m late for class, I drive instead of taking the train. If it’s overcast, I’ll pack an umbrella. These are easy decisions that don’t need much thought.

But for more complex decisions, we simplify the problem by using anchoring and adjustment. Anchoring is when we make a decision relying on specific information or value that is available to us, which acts as a reference point (i.e. an anchor) around which we adjust our response. The anchor can be internally generated (e.g. we come up with our own anchor based on our own knowledge of a product) or can be set externally (e.g. a price tag on a product). 

Take for instance, determining the value of something using an internal anchor vs seeing the price marked on the ticket (external anchor). Most of the time we use anchors unconsciously, whereby we do not realise how the anchor is impacting our decision. Sometimes, however, like in the case of bargaining or price fixing in retail, they can be used to influence other’s decisions. 

Anchoring and adjustment while shopping.

We have already explored in class how internal versus external anchoring works with low involvement purchases, but how does it work with high involvement purchases?

Have you ever fallen for the ‘buy one and get the second one half price’? I almost did the other day. I was seduced by the window display at a shoe store and couldn’t help but to take a peek inside. I didn’t really need a new pair of shoes let alone a second pair, but into the store I went because the external anchor was quite appealing. 

It was the mid-season sale, so a lot of the shoes were already discounted. Among them was a gorgeous pair of boots marked down from $350 to $199 and a selection of full-priced new season heels. I found a pair for $120 before sitting down to try them on and consider my selection.

Now normally I don’t spend more than $200 on a pair of shoes, so the price was just under my internal anchor. I already had about 30 pairs of shoes, so I didn’t exactly need a new pair. Whether I fell for the trap or not was of my own volition, the transactional value enticed me to walk into store and try on shoes, but in the end the internal anchor was stronger than the external one. 

So what exactly was involved in that judgement process? First of all, we use selective accessibility to compare decision target value with external anchor value. Was I willing to pay $259 for two pairs of shoes that I didn’t really need? The external anchor activated the knowledge that if the shoes were full-priced, I would have had to pay $470, which would give me a saving of $211! Now that’s value!

But wait, the last time I bought a pair of boots, they were only $80 and I could still get a lot of wear out of them. This internal anchor forces me to question my judgement and exert self-control by forcing me to ask myself, "How much money do you usually spend on a pair of boots? How many pairs of high heels do you already have?‘’ 

Now things are significantly more complicated, especially because the external anchor-based promotion’s influence on purchase quantity. So to simplify the decision, I used a confirmation bias to look for more facts and justify my opinion. ‘’The boots are good quality and they will last me a few seasons and I saw a similar pair of these high heels in Vogue.’’ 

Confirmation bias is when we interpret new evidence as confirmation of our existing beliefs or theories. So after a quick Google search I found that the shoes were much higher priced at other retail outlets, confirming my opinion that this was a good deal. 

You’re probably wondering if I ended up buying the shoes. Well, the answer is no… Internal anchors are strong enough to override external anchors, so my ability to use reason saved me from buying something that I didn’t really need. In retail contexts with higher involvement purchases, there really needs to be an integrated marketing approach. Would my decision have been different if there had been displays showing me how to wear the shoes?

Sometimes there just isn't enough information.

When there isn’t enough information or if you are only referring to one source, often biases are relied upon to help fill in the gaps with best guesses and assumptions. The problem with this is that this can lead to misinformed decisions, so it’s important to be aware of these biases to avoid disaster.

Biases lose their strength when there is real information so a simple way to counter them is to try to have a look at the whole picture. There are a number of judgement processes linked to biases. Generally speaking, biases look at information that is consistent with beliefs.

Confirmation bias is when you seek facts or new evidence that support your existing opinions. When people would like a certain idea/concept to be true, they end up believing it to be true. Once we have formed a view, we embrace information that confirms that view while ignoring, or rejecting, information that casts doubt on it. In a way this is a form of prejudice that inhibits our ability to perceive something objectively.

Whereas with selective perception, our brains may already have preconceived ideas and beliefs. In this case we perceive only what we want to and ignore other perceptions or viewpoints if they don’t match our own. 

In the marketing context, we can consider how consumers are bombarded with messages from brands on a daily basis, so they sift through the noise by blocking or modifying messages that conflict with their own values and attitudes.

Finally there’s cognitive dissonance, which is essentially a form of rationalisation. We are motivated to change perceptions to rationalise truths and limit the psychological stress that results from holding conflicting ideas or values simultaneously. Just in case you missed it, here’s the Cognitive Dissonance song again.

While there are many more biases to be explored within the judgment making process, the ones outline today should give you a better idea on how to process information. By being aware of the hidden or underlying forces that shape our decisions as business leaders, consumers and in everyday life we are able to avoid psychological biases to make better informed decisions.

Alyce Brierley
Current student in the Master of Marketing program at the University of Sydney Business School.

6 Brands Using Innovative Marketing Strategies

When it comes to marketing strategies, it helps to have a competitive edge. The most successful campaigns are those, which are not only creative with a clear message, they also consider a range of other factors like a brand’s value proposition, sustainable competitive advantages and most importantly their customers.

For the last six weeks, in Innovative Marketing Strategies MKTG6203, USYD Master of Marketing students have been learning to apply strategies, frameworks and theory in real-world business scenarios. At the core, marketing is a form of storytelling, a way of communicating value to customers, but as it turns out, marketing goes much deeper than that.

Developing innovative competitive marketing strategies requires a long-term perspective that makes use of concepts, frameworks and tools from across the marketing discipline. It turns out that innovation isn’t only about being creative, as marketers we must also draw upon our knowledge of strategic business management, entrepreneurship and finance. Only then can we create sustainable value for all of our stakeholders.

Marketing Matters looks at some brilliant examples of innovative marketing from the leading brands of 2017.

1. Snap Spectacles Hyped-Up Product Launch

Snap Spectacles are a great example of how to use PR to help spread the buzz around a product launch. Snapchat’s Snapbots recieved a massive amount of attention with little spend. By creating a hype around the release of the new Snapbots, they created a perceived demand around their product.

Snapbots are essentially pop-up stores in the form of cool looking vending machines that people were lining up to buy a pair. Everywhere a Snapbot was 'dropped', crowds gathered to form queues that spun around the block. At the same time, all these people who were spending hours in the queue taking photos were creating free attention on social media and then free PR when the tweeting about being in a queue to buy some Snap Specs which was picked up by media outlets.

Rather than just being in the press once, when it was launched, Snapchat keeps making the papers every time a new Snapbot is dropped in a major city, getting several times the coverage any traditional product launch would have received.

But the most notable aspect of this campaign is how it aligns with the core principles of Snapchat’s value proposition of authenticity, expressiveness and playfulness.

2. Virgin Holidays VR Experiential Retail Marketing

There’s been a lot of buzz in 2017 about experiential marketing and the possibilities of virtual reality as a marketing tool.

Virgin Holidays took experiential retail marketing one step further by co-creating Virgin Reality headsets using Google Cardboard technology. VR was made available in-store with Virgin providing customers with headsets to create an immersive VR experience. To produce the 3D video, Virgin took a special 360 rig and GoPro cameras to a Virgin resort in Mexico; walking along cliffs, visiting their hotels, beaches and even swimming with dolphins to capture the range of experiences on offer.

Source: Virgin Holiday Virtual Holidays, YouTube

Customers were blown away by the experience on offer in Virgin Holidays stores and responded by increasing their propensity to buy. Not only did sales explode, trips to the resort featured by the VR technology, rose significantly. 

If we consider the essence of Virgin as being youthful, energetic, efficient and professional, characteristics of Richard Branson himself, we can see that this latest marketing campaign embodies everything Virgin stands for.

3. Nike Combining Customer Service With Social Media.

When it comes to social media, Nike truly does have an exemplary presence. Their Twitter account - @NikeSupport - is a great example of how social media can be used for customer relationship management. Their positive company-customer interaction allows them to respond quickly and efficiently to specific questions about peoples’ orders or accounts on a separate platform.

Nike’s mission statement states its corporate operations and retail stores are all about the athletes they serve and the inspiration and innovation that Nike products provide to those consumers.

Having a separate account for customer support is an innovative way for Nike to be accessible to its customers without diluting the content on @Nike or @NikeStore. It also reinforces the fact that Nike cares about their customers - with phrases like, “give us a shout if you need help.”

4. Whole Foods Educate Their Customers

More than just a grocery store, Whole Foods has also branded themselves as a lifestyle choice. The brand embraces healthy living and earth-conscious eating.

Whole Foods brilliantly uses content marketing to communicate their core values to their customers. Their online purchasing platform also hosts a blog with articles about saving money but still eating healthy, tips to change your diet for the better; making Whole Foods’ products and lifestyle a holistic approach to eating and grocery shopping. 

In addition to informative blog posts, the website uses a lot of proactive language (“I want to learn/do/both”) as a search option in its navigation bar, inviting the audience feel like they have an active role in the experience.

The lasting connections created by this kind of inclusive content attracts not only new customers, it also retains their existing customer base; giving convert a whole new meaning. Whole Foods creates a community of health and earth-conscious consumers and the content it produces supports that idea.

5. Patagonia and Social Responsibility

Patagonia’s mission is rooted in social responsibility. “Build the best product, cause no unnecessary harm, use business to inspire, and implement solutions to the environmental crisis.” Goals such as these aren’t easily communicated by traditional forms of marketing. That’s why, Patagonia uses content to get their message across. At the same time, building a tribe of people who share those values and support the community through purchases.

 

Patagonia’s blog, The Cleanest Line, shares stories about the environment, including firm declarations about where the company stands on ethical and environmental issues. The company has also co-created podcasts about the outdoors with the Dirtbag Diaries, and produced and supported short films that tackle environmental issues. On example of this is The Refuge about two women from the Gwich’in people of Alaska who are on a quest to protect their land.

Patagonia has a large, active and engaged social media following, which they use as key distribution channels to drive fans to the longer-form blog content and spread their environmental message - rather than promote sales. 

Source: ‘The Refuge’, YouTube

6. Starbucks Animated Series

Starbucks is no stranger to innovation. They have mobile apps, massive social audiences (36 million fans on Facebook, 12.6 million on Instagram) and also a thriving YouTube channel. But it wasn’t until recently that Starbucks really began to kick some goals in regards to innovation. 

Starbucks did already have a blog, 1912 Pike, but the site was sales driven; only offering recipes and information about brewing and sourcing coffee. The brand’s exisiting social channels were focused on consumer engagement and popular Starbucks drinks (#PSL) and products (#RedCups).

Starbucks YouTube channel: Upstanders

Last September, Starbucks decided to take advantage of the opportunity to reach out to a larger audience by launching Upstanders (See video above). Starbucks first content series featured an original collection of videos, written stories, and podcasts that were produced by Howard Schultz, Chairman and CEO of Starbucks, and Rajiv Chandrasekaran, a former Washington Post editor. The series shares the experiences of Upstanders - ordinary people doing extraordinary things to create positive change in their communities.

Following its success, the company then launched 1st and Main, an animated web series featuring talking animals who work and hang out at Starbucks. This strange animated series was conceived by a trio of Simpsons writers who worked at Starbucks every morning and saw the Wifi log-in page as a missed opportunity to serve content to a captive audience.

Starbucks YouTube channel: 1st & Main

So what lessons can we take away from all of this? It’s one thing to have a creative slogan, great content or a viral video - just remember that these are all tactics. They will be forgotten as soon as they are remembered unless they are linked to some form of strategy or objective.

If you want to build a stronger brand, or truly connect with your customers in a way that will create sustainable competitive advantages, then leverage the things that your brand stands for or wants to stand for. Whether that’s sustainability, authenticity, or innovation, always try to create unique, personalised experiences and content, people want to share, tell a story that people can relate to and teach your audience something. Most importantly, remain agile, adaptable and never lose that competitive edge.

Alyce Brierley
Current student in the Master of Marketing program at the University of Sydney Business School

The Privacy Trade-Off

What is privacy? And just what kind of price are consumers willing to pay for theirs? Web services such as Facebook and Google may be 'free', but the truth is that being connected does come at a cost. Targeted ads provide value for customers, but challenge the traditional need for privacy. So when the law hasn't yet evolved in response to the collection of big data, how do we know where to draw the line in the sand?

For users of social media, Facebook's free platform offers a way to connect with the world. Their ad platform exists so users don't have to pay, but even if they did, the network wouldn't be so comprehensive if there were costs involved. For Facebook to maintain what's called 'critical mass', every single user would have to pay dollars for their services. The thing is, what most people don't realise is that they are actually paying for it now. Not with money, but with their privacy.

USYD's Marketing Matters explores the concept of privacy and what it means in this day and age by exploring the learning from Terry Beed's guest lecture for Regulatory Environment & Ethics. Louis Brandeis and Samuel Warren define privacy perfectly in their essay The Right to Privacy, stating that privacy is a right valued by civilised men-something that is essential to democratic governance and an integral part of our humanity.

We have the 'right to be alone'.

Louis Brandeis and Samuel Warren championed the protection of the private realm as "the foundation of individual freedom in the modern age." Nowadays, marketers have the ever-increasing capacity to invade consumers' personal activity.

Internet marketing brings forth a myriad of privacy challenges. And for the new breed of marketers who use targeted, behavioural marketing, without regulatory enforcement, the increased data available on the web could lead governments, companies and criminals alike to exploit consumers' rights.

Privacy is a concept in disarray. 

In Daniel Solove's essay Taxonomy for Privacy (2006), privacy is described as being 'a concept in disarray'. Solove writes, "Nobody can articulate what it means. As one commentator has observed, privacy suffers from 'an embarrassment of meanings'."

The Taxonomy For Privacy is a framework for understanding privacy in a pluralistic contextual manner, which explores the fear of what happens to private information. These fears are grounded in:

1. Collection: surveillance and interrogation.
2. Processing: aggregation, identification, insecurity, secondary use and exclusion. 
3. Information Dissemination: breach of confidentiality, disclosure, exposure, increased accessibility, blackmail, appropriation and distortion. 

Privacy regulations are more than just guidelines. 

In countries, such as Germany, tough legislations exists to fight against the systematic erosion of privacy rights. In Australia, the AMSRS has outlined a code of conduct for marketers, and the Privacy Act 1988 (Cth) is currently being ammended. 

In 2006, the Australian Law Reform Commission (ALRC) commissioned a review of privacy and found that the overwhelming message was that Australians care about privacy, and they want a simple, workable system that provides effective solutions and protections. 

Source: ALRC

A similar study by the OAIC found that there was a 15% increase in Australians willing to divulge personal information; a number that rose from 43% to 58%. However, 50% were more concerned about providing their information over the Internet. 

"Australians believe the biggest privacy risks facing people are online services - including social media sites. Almost a half of the population (48%) mentioned these risks spontaneously. A quarter (23%) felt that the risk of ID fraud and theft was the biggest, followed by data security (16%) and the risks to financial data in general (11%). Young Australians were most concerned about personal information and online services, with six in ten (60%) mentioning this as a privacy risk."

See the full breakdown below:

Source: OAIC Community Attitudes to Privacy Survey Research Report 2013

Reluctance was the biggest barrier, with most consumers signalling that they felt that organisations often had no right to know their personal data, or the fact that it might lead to unsolicited direct marketng. Interestingly enough, they were less concerned with financial loss due to scams.

More recently, the ALRC considered legal liability for data breach in its inquiry into remedies for serious invasions of privacy. The 2014 Report, Serious Invasions of Privacy in the Digital Era (ALRC Report 123), concluded that regulatory responses, including mandatory data breaches, are a better way to deal with data breached than a civil action for invasion of privacy. 

What this means for Australians is that instead of being blasted with headlines touting 'the end of privacy', we will soon be ushering an era of 'privacy protection'. 

The privacy market is a big business. 

Businesses value Facebook's billions of users, as much as their ability to use targeting services to reach the right audience. As the technology advances, this form of advertising will become more intrusive. For example, did you know that Facebook already has the right to endorse sponsored posts without your permission?

You see, what makes this form of advertising so successful is a little thing called 'retargeting;. By using tracking pixels, browser data is stored in what's known as cookies, which assist in improving the shopper experience. 

In the EU, websites recieve 'informed consent' when using cookies and users are notified when accessing the sites. While privacy concerns are legitimate, cookies are nothing more than pieces of data. 

The ultimate trade-off. 

There are some benefits to sacrificing privacy. For example, recommendation engiones help consumers discover great products that they might actually be interested in, which greatly enhances the online shopping experience. An app developer can analyse your behaviour to fix bugs that they may not have otherwise known about. 

Additionally, these benefits are no longer limited to digital - target marketing is beginning to migrate into bricks and mortar. Until recently, digital billboards are nothing more than slideshows. Now a company called Clear Channel Outdoor has introduced billboards featuring dynamic targeting advertisements that are programmed to target specific locations. 

One of the hurdels that could possibly impede further advancement is the consumers themselves. Consumers will need be acclimatised to changes gradually in order to help alleviate their fears over how their information is used. 

No matter what the future of technology and digital marketing brings for consumers, companies and their stakeholders, to an extent, it will always be important to respect privacy. However, at the rapid pace of technology evolution, regulation can rarely keep up with the change. So it is up to us to trust ourselves to do what is right and not add to the erosion

Alyce Brierley.
Current student in the Master of Marketing program at the University of Sydney Business School.

MoM Student Survival Guide

Are you feeling a little out of touch? Don't know which way is up and which way is down? In the last post, Marketing Matters covered the Marketing essentials necessary to get by this semester. This time, MoM asks some current and graduating students about how they've survived university life so far. 

What do you wish you knew about the course before you started studying?

Mitha, graduating MoM student, Digital Marketer at Glass Financial.
Time flies. 1.3 years will go by so quickly without you even realising it. So make sure to maximise that time. Don't isolate yourself, make the most of what the university can offer - from colleagues, experienced tutors, business-based clubs, events, and even resource access in the library that you'd usually have to pay thousand bucks for if you didn't have the free access from uni.

Ayesha, current MoM student, Director of Training at ILSC Sydney. 
The most important thing when it comes to this course is time management. It may look like the assignment is due in 7 days but trust me, next thing you know you only have 7 hours left! If I knew juggling work, family, and full time studies would be that hectic I probably would have considered things differently. So please do not underestimate the time and effort it consumes to get a distinction. Take things step by step. Maybe it seems daunting initially, but once you get in there you will surely enjoy the journey! Just know that we are all here for each other, so please reach out if you need any help!

What is the most rewarding thing about the Master of Marketing program?

Kevin, graduating MoM student. 
The most rewarding thing about the Master of Marketing program for me is being able to gain and share knowledge from aspiring and/or experienced marketers all over the globe. It's the most notable reward for me because not only have they helped me grow as a marketer, but they've also become friends that I will cherish for life.

Donna, graduating MoM student. Marketing Manager at Bridge Climb, Sydney. 
The Masters really gave me insights into many areas of marketing which i didn't have a great deal of exposure to. Global marketing, for instance, was something that interested me. Looking into ways to market to different cultures and create thoughtful and indepth strategies that are aligned. This will certainly assist me in my new role. Also, the opportunity to work alongside amazing like-minded people and bounce ideas off of others was extremely beneficial. Marketing to me is all about "what's next?" and asking the question of "how can we better engage with our customers and continue to improve what we offer them?". It was a breath of fresh air to be among people striving to do the same.

How has the degree prepared you for your career?

Nicole, current MoM student. Communication Coordinator at Institutional Analytics and Planning, University of Sydney. 
This degree has prepared me for my career by covering all facets of the marketing world. It truly opened my eyes to the different aspects of marketing that give grads a competitive edge. Performance reporting, internal marketing and the hands-on experience of working as a consultant are only some examples of what provides a relevant well-rounded experience regardless of the position you obtain post-graduation.

How do you balance the study load with work, family, and friends?

Ashleigh, current MoM student. Healthcare Professional and Expert Sales Representative at GlaxoSmithKline (GSK).
In regards to work life balance - I think the main thing is being extremely organised with your study plans and preparations, and set times and goals for doing assessments. Also try and work with others who have similar work ethic so you may find it easier to stay on track. Ensure to always have study breaks and try and do something fun and with family and friends at least once a week. Go outside - you can study and get some vitamin D too.

Daniela, graduating MoM student.
Overall, one of the most important things I've learnt during my experience was to manage time efficiently. Everyone is capable of accomplishing anything they want to but time is a key player to achieve those goals. Being under pressure during hectic situation makes you become adaptable and quick thinking in any circumstance. My advice is to fill the schedule as much as possible because having free time ends up in procrastination. Instead, if you designate a set time to any task, you can accomplish so much more.

What tips do you have for students commencing the Consulting Project?

Kim, graduating MoM student. Current Marketing Manager at Get Craft. 
The ethics approval is a tedious process that takes a really long time. So I recommend submitting it as early as possible when you get to part two of the Consulting Project. My client was the University of Sydney's Centre for Continued Learning, so it was a low risk category, but it still took two months to receive the response after the initial application. It can take even longer if you need to do research with children.

Rebecca, current MoM student. Project Manager.
For me the most challenging aspect of the consulting project was the amount of time it took putting together the transcripts. It takes about 3 times the length of the recording to type it out and then additional time to correct typos and formatting. You also have to listen to your own voice in slow motion for hours and hours! I ended up having two interviews transcribed professionally and it cleared my head to focus on the project. It's around $1.40/minute, but it can add up quickly. For example, one of my interviews was 48 minutes long. I wish I'd put money aside in advance because it was worth it. There are phone apps out there, but I didn't really trust them to do an accurate job.

Do you have any other helpful tips for commencing students?

Lizette, current MoM student. Community and Events Manager, Incubate, University of Sydney.

1. In regards to class, learn the basics. Don't expect everything you need to be taught in class so prepare to allot time outside of the classroom to study; this is a master program after all. 
2. Prepare your meals properly because you'll end up eating junk food if you don't plan
3. If you're working, make sure you inform your colleagues and people around you about you class commitments ASAP. This becomes highly important during assessment time when you have due dates.
4. People wise, be smart about who you work with; this is your career so manage your team wisely. If team members don't pull their weight with work, pull them into line. The most stress I've gotten was mainly from group work.
5. What makes good friends doesn't necessarily make good colleagues. In the university environment, you're looking for colleagues
6. The university offers lots of opportunities on campus. Think about what interests you the most. You'd be surprised about all the different areas you can get support. A lot of MoM students also work on campus, and they'd be happy to give you a recommendation or referral to someone who might know more. 
7. On the other hand, don't be afraid to try new things, there's no better place than uni to do that! Attend a meetup or society outing even if the activity is something you've never done before. 

MoM students interviewd by Alyce Brierley. 

Current student in the Master of Marketing program at the University of Sydney Business School.

Understanding How AI Is Disrupting The Decision-Making Process

Debate concerning the future of artificial intelligence (AI) was brought to a head this week when Facebook shut down their AI that had developed its own language. As the debate heats up over ethics and regulation, Marketing Matters looks at the potential of machine learning and how it will change the decision-making process. 

Tuesday marked the first class of the semester for the students of the Master of Marketing program at the University of Sydney. No time was wasted on introductions with Colin Farrell, the leading lecturer of Decision-Making and Research, delving straight to the core of bias in the decision-making process. 

Source: University of Sydney, Decision-Making and Research, Colin Farrell (2017)

While terms such as selective perception, confirmation bias and cognitive dissonance may be foreign; everyone can understand that our brains are naturally wired to create patterns to help us deal with our understanding of the world. But how will this process change when AI takes the lead in the decision-making? 

Source: University of Sydney, Decision-Making and Research, Colin Farrell (2017)

How is AI already creating value for companies?

Artificial intelligence (AI) is finally starting to deliver value to some early-adopters. Online retailers are utilising AI-powered robots to manage warehouses and inventory. Utilities forecast electricity demand using AI, and the automotive industry is beginning to harness the technology in driverless cars.

Source: Mckinsey, How Artificial Intelligence Can Deliver Real Value For Companies.

Yes, it’s true that computers are now more powerful than ever, algorithms are more sophisticated, but AI’s advancements wouldn’t be possible if it weren’t for the billions of gigabytes of data collected every day. 

McKinsey Global Institute recently released a discussion paper titled, ‘Artificial intelligence: The next digital frontier?’  Of the 3,000 AI-aware companies around the world, of whom most being in digital frontier, AI was used in the core part of the value chain to increase revenue, reduce costs, and have the full support of the executive leadership. 

Can AI replace executive decision making?

For the moment, no. Current cognitive technologies, while great at finding patterns and making data-based predictions, have their limitations. One of which being that they are only able focus on simple problems that still require human input. As time goes on, cognitive technologies will absorb the easiest aspects of executive jobs; liberating executives from the mundane and providing them with more time to use more creatively and productively.

However, while AI adoption is imminent, executives using AI technologies are only employing it for tasks such as predictive analytics, automated written reporting and communications, and voice recognition/response.

Source: ZDNet, image rights (Bloomberg Beta)

The age of AI is upon us.

Well it’s not exactly here yet. There is a huge difference between voice-enabled digital assistants like Siri - a web search and voice interaction tool, and the level of intelligence of machine learning artificial intelligence like IBM’s Watson.

Source: IBM Innovations 

Once AI reaches a certain level, their advice would be way more accurate than than the average human’s, which means that people may defer more and more decisions to AI. Unfortunately for us humans, this means that we could gradually lose the ability to perform those tasks and make decisions by ourselves.

Is there a risk?

Earlier this week, researchers at the Facebook AI Research Lab (FAIR) found that their chatbots were communicating in a new language developed without human input. As amazing as this sounds, there are profound implications for AI.

Source: One Poll

Although AI isn’t sentient yet it could still be considered dangerous. Scientists and technology innovators such as Elon Musk, Bill Gates, and Steve Wozniak have previously warned that AI could lead to unforeseen consequences. Stephen Hawking foretold back in 2014 that AI could even mean the end of the human race; stating, “It would take off on its own and re-design itself at an ever increasing rate. Humans, who are limited by slow biological evolution, couldn't compete, and would be superseded.” 

Elon Musk, the founder of Tesla and SpaceX, at the Recode’s Code Conference 2016 cautioned, “If you assume any rate of advancement in AI, we will be left behind by a lot. We would be so far below them in intelligence that we would be like a pet,” he said. “We’ll be like the house cat.”

More than 8,000 people, including top AI experts, have signed an open letter urging research into ways to ensure that AI helps, rather than harms, humankind.

Five of the potential risks identified include:

1. Loss of Privacy
2. Development of AI-powered weapons
3. AI Causing Harm Unintentionally or even indirectly, 
4. Computers Turning Malevolent
5. Robots replacing humans as the rulers of the planet 

Ok, so that last one was a worst-case scenario, but wouldn’t you rather be safe than sorry?

Ethics and AI. 

Concern over the development of AI has led to the creation of organisations like Open AI and Partnership on AI. Their goal being, "to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return."

Partnership on AI, with founding members Amazon, Facebook, Google, IBM and Microsoft, seek to support research and recommend best practices, advance public understanding and awareness of AI, and create an open platform for discussion and engagement.

Source: Reddit

In conjunction with the 2017 Asilomar conference, experts have agreed on a core set of principles to govern AI development. A key principle, for example, demands AI be developed in accordance with human values; something that will be very hard to put into practice. Another principle stipulates that the economic prosperity created by AI should be shared broadly, to benefit all of humanity. But what does that mean? 

Should we fear AI? Perhaps, but not just yet. While the risk of information overload, selective perception and confirmation bias are diminished significantly with AI, it is still possible to make bad decisions about what machine intelligence is permitted to build.

With Moore’s Law stating that processor speeds will double every two years, could computer’s intelligence eventually surpass humans? Will they succeed in eliminating bias? Or will they, as with humans, develop biases of their own?  Fortunately for us, until they are able to feel emotion or think creatively, we have nothing to fear.

Alyce Brierley

Current student from the Master of Marketing program at the University of Sydney Business School.

The Whisper - with Linda McGregor

With so much data at our fingertips, nowadays as marketers, our job is to translate inputs about our target audience into true insights about their behaviour. Why is this so important? Well, understanding consumer behaviour presents marketers with the magic key that enables us to build a bridge between consumer need and brand offer.

Image source: Can You Whisper Your Way To Brand Love? Linda McGregor.

Essentially, in the end, the goal is brand love. Great marketing is the craft of whispering to our audience, rather than shouting at them, to guide them along a journey of brand discovery and brand trust; by applying deeper understanding so that you can influence their behaviour and trigger a need. The Whisper is something that we all can understand, but more often than not, we are so focused on results that we forget that brand love takes time.

Throughout our studies, first in Geoff Fripp's Evaluating Marketing Performance (EMP), then with Pennie Frow in Internal Marketing, and finally with Teresa Davis in Contemporary Consumer Behaviour, we have been familiarised with the Customer Migration Pathway. But seeing it in theory and using it in practice are two completely different things. 

Source: Geoff Fripp, Evaluating Marketing Performance, Session 2, Semester 1, 2017.

Who is Linda McGregor and what have horse whisperers got to do with achieving brand love?

Linda has spent her career working all sides of the business: marketing, advertising, strategy and business development. She has over 30 years of experience working on both the client and agency sides in the UK, Asia and Australia, before finally founding her own insight consultancy, All About Eve, in 2003. With decades of expertise in distilling insight into behaviour-changing strategy, Linda is well versed in the art of fashioning bonds between audiences and brands. 

The University of Sydney is fortunate to have close ties with Linda. On many occasions she has given her time to help inspire the future marketing managers of Australia; most recently at the Orientation Welcome Evening. Now, she has agreed to share her lessons with Marketing Matters, for the benefit of those who couldn't make it to the event. 

Linda draws upon her two passions in life - audience insights and her love for horses to explore how Horse Whisperers, the masters of distilling insight, are able to change behaviour and create bonds of trust. 

Image source: All About Eve. Linda McGregor speaking at Battle of the Big Thinkers, Vivid Festival, Sydney, 2017. 

Understanding the four elements of the craft. 

The analogy of the horse whisperer and the training ring is a stunning paradigm of the strategic manoeuvres used by marketers that are needed to develop brand love. As marketers do when approaching a strategy, the whisperer enters the ring with a vast well of behavioural knowledge and past experience up his sleeve. This knowledge is accessed reflexively as the circumstances of his relationship changed depending on the cues from himself and the horse - or consumer. 

Image Source: Can You Whisper Your Way To Brand Love? Linda McGregor. 

If you missed Linda's talk, don't despair because lucky for us, Marketing Matters was able to sit down with Linda and get an inside look into her practice. 

MM: As a marketing consultant, sometimes it's really easy to get bogged down on all the data. How do you go about selecting relevant data and then translating it into true insights about consumer behaviour?

Linda: Relevant data is all about focus. A good start point is a tight brief so you’re crystal clear on the audience that you’re trying to understand – and WHAT you are trying to understand about them. Build a picture or portrait of them so that they come to life for you, so you can see them as real people.

Then you look to do what we at All About Eve call 'the unpack': get past behaviour to triggers and need drivers. Think about it as getting past the symptom to a root cause. This is when you get to the real insights that will allow you to influence, and even change, audience behaviours.

It’s all about getting past the conscious mind and behaviours to the subconscious mind, where neuroscientists will tell you 90% of all decision making action takes place.

MM: You've spoken in the past about fashioning bonds between audiences and brands to achieve brand love. In your opinion, what is the most important difference in approaches between 'the push' and 'the pull' in marketing and where does 'the whisper' fit in?

Linda: Both push and pull have a place in marketing campaigns. For me, however, pull is the stronger one because you tap into existing consumer needs and use them to connect and bond the brand to her (or him).  That seems to be a clearer route to Brand Love building, because it taps affinity. 

The Whisper is the approach to how you achieve that effective pull. How you whisper to the audience’s inner need, instead of just yelling at them. Fundamentally by understanding, giving them time to know the brand offer then choose to come to the brand, freely.  The Whisper offers the benefit of building a stronger, deeper bond between the audience and the brand. A strong but silken thread that binds.

MM: For some, especially those who didn't hear you speak last week, the metaphor of 'the whisper' might be a little abstract to understand. Could you briefly explain what's involved in the four stages of the whisper?

Linda: Well firstly, I would say we should arrange another talk then, lol!

For now, here are the 4 elements (rather than stages, which infers they have a linear order), in summary: 

1. The Insight Watch
   Gathering Qual & Quant info, translating to insight and unpacking to a subconscious level to understand the true triggers to audience behaviour - and hence how to influence it
2. The Patient Pause    
   Counter-intuitively, not rushing to pull the consumer into the decision to choose your brand. Instead giving them time & space to build trust with, and of, your brand.
3. The Consistent Offer  
   Taking a relevant brand offer then consciously & consistently delivering that in a message in the audience’s language. Demo-ing that brand’s 'talk' and 'walk' match.
4. The Choosing              
   The resulting benefit of the other 3 elements of the whispering approach. By talking with the audience, not at them, you build affinity – leading to them choosing to join the brand

According to Dr Terry Beed, Honorary Associate Professor at the University of Sydney, In the context of our Business School, this is where our knowledge of consumer behaviour, drawn from the literature and other sources including “experience” and Big Data comes to the fore. It builds towards responsive adaptation in challenging (maybe dangerous!) circumstances. 

At the University of Sydney, the professors take pride in preparing their students for the ring so that when they get in there, they can respond and get results in the dynamic setting of contemporary marketing. Linda McGregor’s metaphor leaves her audience with a vivid impression of a different yet powerful kind of marketing model to draw upon.

Alyce Brierley

Current student from the Master of Marketing program at the University of Sydney Business School.

New Semester, New Journey

August is nearly upon us, which means the end of studies for many students from USYD's Master of Marketing program. Not the end of the road per se, but the beginning of a new exciting chapter in their lives, careers and future projects. For the rest of us, the journey continues in semester two and we are ready to welcome many more new students into our MoM family.

New students, here's your chance to get involved. 

If you can dream it then you can do it. That’s why we’re all here, right? We’re here because we have a dream and we were gutsy enough to take control of our lives in order to make it happen. With this new semester about to embark, we have an opportunity to get the most out of our master degree. Sure, you can do the bare minimum and just come to class or you can get involved in the community. Our student cohort is full of bright, up and coming stars with a wealth of experience to learn from.

That’s why we can’t stress enough the importance of becoming a member of our student run Facebook group, ‘Master of Marketing USYD’, as well as the closed LinkedIn group by the same name - for students, alumni and industry professionals. You should already know that networking is important and all of these people want to help you achieve your goals.

Marketing Matters want to hear your voice! So if you have a way with words or an opinion to share, get in touch because there’s no better way to strengthen your personal brand or increase your online presence than to contribute to the Master of Marketing blog.

Add your fellow students to your LinkedIn profile, endorse each other for skills, share articles, job postings, ideas, videos ANYTHING! Just don’t waste your time here and sit by on the fence because one year goes incredibly fast and before the blink of an eye this amazing experience will be over and it will be graduation time and that moment may have passed you by.

But before you start thinking about graduation, I hope you will enjoy this welcome video made by current student, Bowie Chen, with tips shared by current students from Master of Marketing program.

Go out there and do amazing things. 

For those students who are about to finish their studies, we just wanted to tell you how much we have enjoyed learning with you. You have become almost like family over the last semester and we hope that you will continue to be active members of our community; sharing stories, experiences and opportunities. We only get out of the program what we put in and just because you have finished, doesn’t mean that you are now on your own.

Remember, no matter which path we choose, we shall never fear the roles we play now, nor those we will play in the future.

Finalists for the Marketing Consulting Project, Alice Xie Yifan and Sarah Homewood, along with the winner of the award, Jessica Farrell, presented their projects to the audience.

Be engaged with the industry. 

Honorary Associate Professor, Dr Terry Beed, reminded us on Tuesday evening that both the University of Sydney’s Business School and the Dean, Associate Professor Geoff Frost, place a great deal of importance on engagement with the marketing industry. The receptions held for incoming and continuing students, are designed specially for this reason, with leading executives and marketing professionals as well as alumni, often invited to provide opportunities for students to network. 

We believe that’s what sets the University of Sydney’s Master of Marketing program apart from other programs of its kind. We are the most connected and engaged program on offer for experienced marketers. 

MoM students: Chris North, Honorary Master of Ceremonies, and Alyce Brierley, Social Media Manager of Marketing Matters.

What you missed at the welcome reception. 

On Tuesday 25th of July, orientation began for the commencing students, many of whom attended the evening welcome event at the Abercrombie Business School’s Refectory. Acting as Honorary Master of Ceremonies for the Reception, the event was hosted by current Master of Marketing student, Chris North, who in keeping with his reputation for comical relief, had us all thoroughly entertained throughout the evening. 

The opening speech delivered by Honorary Associate Professor, Dr Terry Beed, and Associate Professor Geoff Frost who is also the Associate Dean (Graduate Business), as well as a special message from Pennie Frow, Program Director of the Master of Marketing. Explaining how the Master of Marketing program can ‘pave the way’ for students to excel in their careers, Pennie highlighted how successfully completing the program can take students to the next stage in their career, opening up new opportunities across a broad spectrum of marketing roles.

Professor Donnel Briley; Stephen Jenke, Guest Lecturer and recently elected fellow of AMSRS; special guest Ms Margot Priday, CEO of NewsMediaWorks; Andrew Baxter, CEO Australia and New Zealand for Publicis.

A number of the program’s professors and lecturers also attended along with esteemed industry leaders and special guests such as Linda McGregor, Founder and Owner of ALL ABOUT EVE. Linda’s speech on Brand love demonstrated how, as marketers, our craft is to translate input from our target audience into true insights about their behavior, which can in turn give us clues on how to influence it. Only then can we hope to build the bridge between consumer’s needs and our brand offering. To achieve the lofty, lucrative goal of brand love. By using the analogy of a horse whisperer, Linda demonstrated how to interpret consumers’ behaviour to create bonds of trust between customers and brands.

The University of Sydney's MoM students - past, present and future.

It might be hard for new students to understand Brand Love from Linda at this moment. But, as we just mentioned, never let setbacks or fear dictate the course of your life. With the great Master of Marketing program at your fingertips with professional professors and lecturers from Master of Marketing program, all students will be guided by force, nurtured by expertise. 

If you missed out on attending this event, be sure to attend the End of Year Reception, which will be held mid to late November on a date to be announced. There will be awards for best performance in the program and some exciting guest speakers in the line-up for this event. Stay tuned for more details in the coming months.

Notes on the special guests who attended the Master of Marketing Welcome Event 

Stephen Jenke is a Guest Lecturer in the Masters Program who was recently elected a Fellow of the Australian Market and Social Research Society.  He has held global roles with TNS and Kantor in the APAC countries for 10 years prior to returning to Australia recently. 

Ms Margot Priday is the wife of the late Dr Paul Priday a brilliant teacher in the Masters Program and contributor to the its design. Paul was one of Australia’s most respected Creative Directors before embarking later in life on a stellar academic career.  

Peter Miller, newly appointed CEO of NewsMediaWorks and former Global Head of Marketing Strategy for Adstream. Peter is an alumnus of the University of Sydney and a strong supporter of our Master’s Program. 

Andrew Baxter, CEO Australia and New Zealand for Publicis, a multinational advertising and marketing agency. Andrew is one of Australia’s most senior marketing executives and his wife Angela is a Tutor in the Discipline of Marketing’s undergraduate programs.

Alyce Brierley and Hazel Chen

Current students from Master of Marketing program at the University of Sydney Business School

Katy Perry To Witness Myer’s Comeback

Australia’s retail sector is in trouble. The $300 billion, over-crowded and highly competitive industry’s marketing strategies are getting more creative in order to secure top-of-mind awareness. It’s no wonder that retailers like Myer are partnering with superstar influencers to lift sales in the midst of a stale trading environment.

Fans set to Witness a change.

Perry, who released her fourth major label album, Witness, on June 9, stands as one of the biggest successes in the music industry. She has had huge international success, selling over 6.5 million albulms, had 14 Billboard hits, and even performed at the Super Bowl.

But the singer isn’t the same sugar-coated pop-start that she used to be. As a widely publicised supporter of Hillary Clinton in the US elections, Katy Perry has changed her stance in an effort to stand against misogyny. Not only her hair and music have changed, but also her message.

Change is also the theme of her new album Witness, an introspective, less pop and more dance vibed album that’s entirely different from her last two records, Prism(2013) and Teenage Dream (2010).

She has been accused of lipsyncing, being racist, homophobic and even mean (who can forget her all out feud with Taylor Swift). But that still hasn’t stopped the celebrity from garnering over 100m twitter followers, whether they be real or only bots.

Image source: The Australian (Renee Nowytarger) Katy Perry poses for selfies with fans yesterday at Myer’s Sydney flagship city store.

Katy Perry is Myer’s silver bullet.

Some would say that Myer chief executive Richard Umbers move to become the naming rights partner of popstar Katy Perry’s Witness tour is nothing short of bold. But for many years now, Katy Perry’s global reach makes her a key influencer.The singer has strategically secured numerous corporate sponsorships and ­celebrity endorsements with her ‘universal appeal’. Something which resonates particularly with Myer’s target audience.

In an interiew with Mumbrella, Michael Scott, Myer’s executive general manager of brand, marketing and loyalty, explained that the goal of the partnership is to boost the retailer’s bespoke and “special” offering to its customers.

“We are always on the look-out to partner strategically with brands which appeal and connect with our consumers,” Scott said.

Witness the new Myer experience.

The buzzword in marketing these days is experiential marketing. Perhaps that’s why Myer has heavily invested in in-store experiences to highlight the value of customer engagement. Live marketing schemes encourage consumers to participate nd interact with a brand on a personal level.

Myer boss, Umbers, who previously declared that retail’s not for the timid, stated that, “It is really about how does a modern retailer compete and the view is we have to be in destination retail, we have to have something that has a real experience theme to it, and this seems a very natural extension to that.

“We had the opportunity to present the Witness tour and we thought that would be a fantastic extension of our thinking around the importance of experiential retail,” Mr Umbers said to The Australian.

If experiential retail is the word, then Myer is spreading it like the gospel. Not only have they partnered with Perry, they have also erected an ice-skating rink for Myer’s Wonderland at its Sydney city store and a Tesla showroom at their flagship store in Melbourne.

Wonderland is another prime example of how Myer are investing big in experiential marketing.

A partnership made in heaven?

Image source: News.com.au. Katy Perry koala threat: Authorities warn marsupials to stay indoors.

In the Marketing Consulting Project we learned that when collaborating with stakeholders it is vital to consider all of the potential ethical issues that could arise from a partnership.

That’s why we really must question the wisdom of Myer partnering with the likes of Perry. Although highly influential, she has been known on many occasions top put her foot in it. Why should this time be any different?

Myer, who was initially thrilled to give their customers the chance to win free tickets to Perry’s Witness tour, was left embarassed when it came to an unfortunate comment by Perry. The campaign video with Myer, which is the sole naming rights partner of Perry’s Witness tour, offended viewers with Perry’s comment encouraging her pet dog Nugget to “chase some koalas”.

A spokesman for Myer said: “We are aware of comments in relation to Katy Perry’s Witness: The Tour advertisement and a particular reference made to koalas. We are currently removing the material which references koalas.”

In an interview with the Courier Mail, Claire Madden, who has worked at Australia Zoo and Currumbin Wildlife Sanctuary, said that “This is just absolute ignorance from Perry and Myer, and inappropriate on so many levels” she said.

“Perry is a role model to so many young people, and this just destroys all the good work we do to try to encourage people not to let their dogs come into contact with koalas.”

Say what you will about her, Myer or their alliance. But one thing is for sure and that is that they are garnering attention in the press and on the world stage. It’s the first time that a department store has sponsored one of her concerts. If Myer’s falling market share increases with this gambit, then maybe it won’t be the last.

Alyce Brierley

Current student from the Master of Marketing program at the University of Sydney Business School.