Marketing in the Digital World

Introduction to Digital Marketing: PART 2

In this session you all will learn

• Marketing 1.0 to 4.0
• Marketing 4.0 Outlook shift
• Influential digital sub culture
• 4P’s to 4C’s in digital world
• Online Marketing Mix
• O3 Layer in digital world
• Digital Marketing Productivity Metrices
• Industry archetypes and best practices
PART 1
Basics of Marketing 4.0
 A century in between
1970s 1990s
One-2-one
Turbulent
1950s Targeting Emotional
Postwar Positioning Experiential
Marketing mix Strategic Internet
marketing Digital
PLC Sponsorship
Marketing Service marketing
Disruption
concept marketing

1980s Early 2000s

1960s Uncertain ROI Driven
Soaring Global Brand equity
Marketing myopia Local
Direct Social responsibility
Life style marketing
marketing Consumer power
CRM
Tribalism
 Evolution of Marketing
1.0

2.0
Production Product Selling Marketing
concept Concept Concept Concept
3.0

4.0
Revolution with digital disruption

product, service and value.

did the consumer engage with our content and share it
 Marketing 3.0 in a nutshell
Individual MIND HEART SPIRIT

Company
VISION
(Why) Profitability Returnability Sustainability

MISSION
(What) Deliver Realize
Satisfaction Aspiration Compassion

Make a
VALUES Be Better Difference
(How) difference
Datum the new oil
 Marketing 4.0 is about 3 major outlook shifts

Vertical to Horizontal

Exclusive to inclusive

Individual to Social
 Identify the outlook shift
S.NO Outlook shift
1. When G7 nations had to seek help of G20 nations for the financial crisis of 2008
2. Innovation from larger to smaller companies (Amazon to Zapoos, Microsoft to skype)
3 Emerging markets have younger, more productive and growing income population
4 P&G in 2000 transformed its model from research-and-develop to connect-develop
5 Sephora (a beauty products brand) incorporates community generated content in beauty talk platform
6 disruptive innovations making goods cheaper (Nano at $2000 and Arvind Eye care cataract surgery at
$16)
7 F-factor ( friends, families, fans and followers)
8 Internet lead transparency enabled entrepreneurs to draw inspiration from developed countries.
Amazon-inspired FlipKart in India , Pay-Pal inspired Alibaba in China
9 HOG community
10 Body shop with its strong commitment such as “support community trade” and “stop violence at
home”
11 Big hotels and taxi companies never imagined competing with Airbnb and Uber
Business moments across customer journey
Platforms across business moments
 Reflection Questions
What are the trends in your respective industry that
demonstrate the shifts towards a more horizontal,
inclusive and social business landscape.
The paradoxes of marketing to connected
consumers
 The paradoxes of marketing to connected customer
• Mature markets Vs emerging markets
( achievers to actualizers).
• Breaking the myths of connectivity
❑ Brick-and-mortar stores versus the newbies
❑ Its not about competition but collaboration
❑ Connectivity is not a mere technology but a strategic choice
❑ from connectivity to experiential (breadth of connectivity- through
touch points) to social connectivity (depth of connectivity through
communities).
❑ Netizens today will be older tomorrow and connectivity shall become
the new normal
 The paradoxes of marketing to connected customer
Paradox 1:
Online versus offline interaction
• Coexistence of online and
offline marketing for a holistic
customer experience ( Zappos:
school of wow with
Zapposspeak ;Bank of
America’s ATM with teller,
Amazon’s Dash button
experience).
• Beacon transmitter and its
experience
• See in TV and connect
through twitter for review
 The paradoxes of marketing to connected customer
Paradox 2: 2 challenges for the marketer of
Informed versus Distracted Customer tomorrow

Though highly informed today’s customers are not in

control of what they want to buy. They are regulated • Hold consumers attention
by 3 factors: creating a WOW effect
(even for 30 seconds).
• Influenced by marketing communication mix • Be a part of community
• 4f’s (family, friends, fans and followers) discussion without much
control
• One’s own potential knowledge, attitude and
past experience about certain brands
Future consumers will be connected yet distracted.
 The paradoxes of marketing to connected customer
Paradox 3:
Negative advocacy versus
positive advocacy
• How negative advocacy helps
• Spontaneous versus
prompted advocacy
• Polarization helps: as it
creates effective engaging
conversation
McDonalds: 33% lovers 29%
haters, nearly balanced
Starbucks: 30% lovers 23% haters
 Reflection Questions
What are some of the cases in your industry that capture
the paradoxical nature of connected consumers?
How do you plan to embrace the paradoxes?
The influential digital subcultures
YAWN

• Youth for mindshare

• Women for market share
• Netizens for heart share
 Youth: Acquiring the Mind share
Benefits of targeting youth
1. Youth are early
adapters, as they are not
afraid of
experimentation. iPod
ads in 2001.
2. Youth are trendsetters
3. Youth are fragmented
4. Youth are game
changers
5. Youth empowerment
movements (RockCorps
to WE.org)
 Women: Growing the market share
Women are divided into 4 segments as their
world revolve around family and work.
1. Stay-at-home housewife
2. plan-to-work housewife
3. working woman with a job
4. career woman
Women play 3 roles which particularly interests
marketers
• Information collector
• Women are holistic shoppers
• Women are household managers
 Netizens: Expanding the heart share
• Netizens are considered the true citizens of
internet democracy because they are involved in
the development of the internet. They see the
world horizontally and not vertically.
• UN Estimates: 3.4 billion internet users – 45% of
worlds population but not all can be considered as
netizens or citizens of the internet.
• Forrester’s Social Technographics Segmentation
explain why all internet users cant be Netizens.
• Netizens are expressive brand evangelists.
• Netizens when passionate become the f-factor.
• Netizens are great story tellers
• Netizens are content contributors.

Forrester’s Social Technographics Segmentation

 Reflection Questions
How can your business acquire greater mind share by
leveraging youth’s roles of early adopters and trend
setters?
How can your business grow market share by leveraging
the household influence of women?
How can your business identify and utilize netizens to win
greater heart share?
Marketing 4.0 in the digital economy
 Marketing 4.0 in the digital economy
WOW

Man meets
machine

WOW
 Advances that will transform life, business, and the global economy
Mobile internet Increase in computing power from IBM’s Deep Blue
(chess champion in 1997)
Automation of knowledge work 300,000+
Internet-of-things Miles driven by Google’s autonomous cars
with only one accident (human error)
Cloud technology
Advanced Robotics Retailers like Border and
3-D printing Blockbuster disrupted by
Amazon and Netflix

A new marketing approach is required

to guide marketers in anticipating and
leveraging disruptive technologies
4.0
 Traditional TV:
Digital Modern Online streaming TV:
People watched in slated Time,
Disruption People watch anytime, any
Slated content and slated
content anywhere
channels

BORDERS/ BLOCKBUSTERS NETFLIX

USP
Netflix boasts as a digital disruptor is the fact it has started to create its own content –
Demonstrating the company’s extraordinary reach.

Modern TV:
free-to-air television
(Hot Star, Zee, VOOT)
Music’s held under the clutches of Big Lables
Now You’re Gone by Basshunter has spent its fifth week
at No 1 and you can’t get enough of it
Year is 2008.
Music’s most radically democratic era was to come
Year is 2007.
Your options are as follows:
• Head to the shops and buy the single on CD, which doesn’t
feel very on-demand;
• Buy it as a download, the quality of which is as flimsy
• Navigate through pornographic popups to download it
illegally; or
• Sit through Scouting for Girls five times until it comes on
the radio.
 Under Spotify's licensing terms, the
company isn't going to own the
music it'll purchase.
.

It's also not demanding

exclusive distribution
rights — any music it
Plus, it's only going after lesser- acquires can still be sold
known acts, not giant stars who through Apple and
already have major label deals. Google or any
Any struggling musician will no competing service.
doubt find all these terms
Spotify’s machine-learning algorithms – when you listen to a
extremely attractive and
track and it recommends things you might also like
reasonable
Stars of Spotify: Stefflon Don,
Daddy Yankee, BTS, R Kelly, Ed
Sheeran and Drake.
From Music’s most radically democratic era to Marketing
4.0 era

Differentiation ON & OFF-LINE

Offline- Online
Interaction

Product Customer Human

Driven Centric Centric

1.0
2.0 3.0
Of the Google partnership, Revlon
SVP of Global Marketing Martine
Williamson said:

“When we started the Love Is On

movement, we knew that
Valentine’s Day would be an
important date for Revlon as it is a
global celebration of love,” said
Martine Williamson, SVP of Global
Marketing for Revlon Color
Cosmetics.
“Working with Google on this
innovative .GIF is the perfect
vehicle to spread the Love Is On
message in a personalized and
special way.”
 From segmentation and Targeting to customer community
confirmation

Marketing 4.0 HORIZONTAL relationship between

consumer and brand:
Permission Marketing
Segmentation to Targeting (Brand DOG- Product) to Customer
Communities
Traditional VERTICAL:
Segmentation to Targeting (Brand DOG- Product)
 From Brand Positioning and Differentiation to Brand clarification of
characters and codes

Positioning NOW :
Positioning then: POP
POP POD
POD Competitive frame-of-reference
Competitive frame-of-reference From false promises to FELT-by-many PROMISES CBBE Model
CBBE Model Tu mera mei teri
But Brands Characters and Codes to remain
Tu mera mei teri …na jane kahan se aaye hein
same over time
…na jane kahan se aaye hein

…….ufffffff
+ Community –
driven-Consensus
From selling 4P’s to commercializing the 4C’s

Marketing Mix then: Marketing Mix Now:

Product
Price Co-Creation
Place Currency
Promotion Communal Activation
Conversation

From customer service processes to Collaborative customer care

The online marketing mix

E-product E-price

E-Mix

E-place E-promotion
 Moving from traditional to digital marketing
From segmentation and
Targeting to customer
community confirmation
From Brand Positioning and From selling 4P’s to
Differentiation to Brand commercializing the 4C’s ( Co-
clarification of characters and creation, currency, communal
codes activation and conversation)

Collaborative customer care

Integrating traditional and digital marketing
PART 2
New frameworks for marketing in the digital economy
The new customer path in Marketing 4.0
 Understanding how people buy: from 4 A’s to 5 A’s

Like/
Dislike

Community

Derek Rucker of the Kellogg School of management Loyalty Now= retention + repurchase+ Advocacy
Loyalty then= retention + repurchase
Customer path in connectivity era
 Mapping the customer path throughout the 5A’s
Stages of the journey Aware Appeal Ask Act Advocate
Activity the company does
Customer expectation

Touch-points

feelings
very happy
satisfied
not satisfied
Experience expected
Experience registered
Driving awareness to advocacy: The O zone (O3)
Preferred Brands are those with stronger customer experience consumption and usage
 Reflection Questions
How can your business transition from the traditional 4P’s
to the digital 4C’s by adopting co-creation taking advantage
of currency-like pricing, engaging in communal activation,
and driving conversation?
How can your business improve brand favourability and
optimize marketing efforts by evaluating the three main
sources of influence across the customer path?
Marketing Productivity Metrics
Introducing PAR and BAR

PAR BAR
 Lets do PAR and BAR calculation: Brand X
9 ADVOCATED

BAR
= 9/90 = 0.1
of 90 people 18 bought

Brand
PAR
awareness Recalled Brand X = 90 people = 18/90 = 0.2
= 90/100 =
0.9
Is The
Brand X
population = 100 people in the market
healthy ??
 New Productivity Ratios

The overriding question: How do companies make necessary interventions and increase the number of loyal advocates?
The overriding question:
How do companies make necessary interventions and increase the number of loyal advocates?

A low conversion rate from aware to appeal means what

Should the
curiosity level
of a brand
A low conversion rate from appeal to ask for a brand means what should be
high ?

A low conversion rate from ask to act for a brand means what
What can
be done
A low conversion rate from act to advocate means what here?

Brain Word:- ATC COMMA

Brain Diagram:- लड़की/लड़का (aware/ attraction)-→ APPEAL/ CURIOSITY→दोस्तों se ASK and ACT (You feel
Committed)→ Affinity 2 tell your parents about her/him.
PAR and BAR scores reflect the process rather than just the
outcome.
Building customer loyalty is a long, spiral process of creating
attraction

Use IMC and

suggest
promotional
WOW tactics
in each stage.

WOW tactics= Dil (Delight) + Personal experience + address an issue

Contagious viral spread of the experience by one consumer to another

Possible company intervention to increase conversion Rates
 Strategies to address Critical Touch points from Awareness to Appeal
• Make product’s value propositions attractive
• Make brands humanized capable of interacting with
customers as equal friends.
• Uphold strong social and environmental values. (Timberland)
From Awareness to Appeal to Ask to
Act to Advocate • Customers may also be attracted to brands that are
Appeal/ Awareness = ATTRACTION experiential and represent certain lifestyle movements (Cool
Brand: Casper ,Tesla Creates a Great Experience For
Customers).
• Personalize their products and services to meet customers’
exact needs (Burger King, NIKEiD)
 Strategies to address Critical Touch points from Awareness to Appeal

• In marketing, curiosity comes from providing

customers with appealing knowledge without
giving too much away ( Indigo: 6E magazine)
From Awareness to Appeal to Ask to • Content ideation and the creation process is one-
Act to Advocate
Ask/ Appeal = CURIOSITY half of content marketing. Another half of content
marketing is distribution and amplification of the
content.
• Searchable(Discoverable), Sharable, Available and
ZMOT

Curiosity = what we know - what we want to know Or What we expect- What we experience
Availability
Discoverability
 Strategies to address Critical Touch points from Awareness to Appeal

• Omni-channel marketing
• Webrooming
• Showrooming
From Awareness to Appeal to
Ask to Act to Advocate
• Beacons
Act/ Ask= COMMITMENT
 Strategies to address Critical Touch points from Awareness to Appeal
• When the actual experience matches or even exceeds
expectations, customers will develop a sense of affinity
and become more likely to be loyal advocates.
• Ritz Carlton Hotel
From Awareness to Appeal to • Zapoos Online shoe retailer
Ask to Act to Advocate • Social media is also a powerful tool for customer
Advocate/ Act= AFFINITY
engagement (Human 2 Human Versus Human 2 Machine)
especially in complaints.
• Gamification
 Reflection Questions
1. How can your business adopt the new metrics of
PAR and BAR to measure marketing productivity??

2. How can your business trigger favorable customer

conversations in order to drive awareness without
increasing the marketing budget significantly?
Industry Archetypes and Best Practices
Channel, Brand, Sales, and Service Management
 Four Major Industry Archetypes
A1: Awareness
A2: Appeal
A3: Ask
A4: Act
A5: Advocate
No Buying (ACT) but Affinity (ADVOCATE) is higher

Low price point

Bow Tie: A Fifth Pattern
Industry Archetypes and Best Practices