digital marketing and the online dialog

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Principles of Marketing/ E-marketing &

E-business/ Marketing and Sales

ManagementDay 2: Digital Marketing

SIBE-Management-Master

Dr. Ute Hillmer

© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

http://www.steinbeis-sibe.de/

December 2015 Dr. Ute Hillmer

Digital Marketing

and the 360° Dialog


See it !

Hear it !

Say it !

Do it !


Agenda1. Framing Digital Marketing

2. The changing Customer Dialog

3. The Benefits of Digital Marketing

4. Categorizing Digital Marketing

5. The Digital Toolbox

6. Hands on Exploitation

7. Lead Generation with Digital Marketing

8. The Trends

9. Getting Started with Digital Marketing

10. Who is Digital Marketing for?

(Pre-Reading: The Digital Toolbox)


17-2

Direct, Online, Social Media, and Mobile

Marketing

‘The key question

is not whether to

deploy Internet

technology –

companies have

no choice if they

want to stay

competitive – but

how to deploy it.‘Porter, M. (2001) Strategy and the Internet,

Harvard Business Review, March 2001, 62–78.


Learning Objectives

• Define direct and digital marketing and discuss their

rapid growth and benefits to customers and

companies

• Identify major forms of digital marketing strategies

and understand the underlying objective. Away from

individual tactics to the overall plan

• Understand the sales funnel in digital marketing –

Growth Hacking


The New Direct Marketing Model

= A New Business Model

For many companies

today, direct and

digital marketing

constitute a complete

model for doing

business.

Copyright © 2016 Pearson Education, Inc.

17-7


What Digital Businesses Do You Use Today?

• What complete digital B-models do you use

today?

• Which additional ones do you know?


A New Area in Products and Channels

Illustration copyright of Steve Blank, „The Startup Owners Manual“


Rapid Growth of Direct and Digital MarketingDirect and digital marketing have become the fastest-growing

form of marketing.

• U.S. companies spent almost $133 billion on direct and digital

marketing in 2014

• direct-marketing-driven sales amount to over $2 trillion

= for 35% of the U.S. economy

Direct marketing continues to become more Internet-based,

and digital direct marketing is claiming a surging share of

marketing spending and sales.

• Over the next four years, digital marketing expenditures and

digitally driven sales are expected to grow 9%/year.

• 50% of total sales are influenced by online researchSource: DMA


The

to get started


The Customer

Dialog is

changing


Dialog Marketing

Is nothing new:

customer visits

telephone calls

discussions

email

business lunches

mail

trade shows

…


But Dialog Marketing had to change …

Customer Dialog is emancipated

Sender Receiver


Changing Communication to a Dialog

Sender

Receiver


Communication Models for

Traditional and New Media

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013


The Degree of Individualization

for Traditional and New Media


(a) traditional media: same message

(b) new media = often unique messages and more information exchange between customers


Chances + Risks of a Customer Dialogcompetitive advantage

When companies look at their

products and services from a

customer point of view, they can gain

huge competitive advantages.


Chances + Risks of a Customer Dialog enhance customer loyalty

Engagement of the

customer

+Interest and appreciation

by the selling company

enhances customer

loyalty


Chances + Risks of a Customer Dialog truly

understand customer needs and enhance products

It’s more than online information

gathering.

Customers exchange their needs, their

preferences and their interests online.


Chances + Risks of a Customer Dialog win customers

Happy customers develop the need to let other customers know that they found a product or service that works for them:

Word of mouth + growth hacking


3 Key Points of any (Online) Dialog

1. Build trust by helping your customer to

make the right decision. Show them a win-

win

2. Learn about the needs and problems of

your customers

3. Build an infrastructure so customers can

refer to you


Consequences: The Brand changes

The customer

fundamentally

influences the brand

– beyond any

marketing control


Consequences: Support changes

Customers exchange experiences and insights. They can often help each other timely and with a lot of detailed knowledge


Consequences: The Dialog changes

Customers can do

more than buy –

satisfied customers

are the best sales

team


Benefitsof Digital Marketing


Task:What are Benefits of Digital

Marketing to Buyers and to

Sellers? Pin them!


Benefits of Direct and Digital Marketing to

Buyers

• Convenience

• Ready access to many products

• Access to comparative information about

companies, products, and competitors

• Interactive and immediate

17-9


The Power of Recommendations:

„I‘ll Have What She is Having“


Benefits, Online Buyers see

• Low Prices (38%)

• Shopping Convenience (35.1%)

• Easy To Compare (33.1%)

• Free Shipping (31.5%)

• Time Saving (30.8%)

• Easy To Buy (29.2%)

• Range of Products (17.4%)

Infographic by Invesp (sources data from eMarketer and Internetretailer.com)

Don’t take these things at face value, because not everything

is as it seems. Ask your customers or test it


Benefit: Low Prices + Price Comparison

• Price

transparency

• Easy price

comparison

• Comparison

Shopping

Engines

Source Will Web Browse for Food: Wall Street Journal


Benefit: Customer Service

A survey by A Forrester

survey asked 4,600 US

consumers across 12

industries which they

thought was more

important, “great

customer service” or

“low prices.” Customer

service won across the

board.

Source: https://experiencematters.wordpress.com/2009/05/17/customer-service-trumps-price/http://conversionxl.com/

http://experiencematters.wordpress.com/2009/05/17/customer-service-trumps-price/


Benefit: Shopping Convenience

Shoppers order when and where it’s most convenient for them.

Mobile devices are changing eCommerce

Every year, mobile e-commerce sees significant growth and is redefining how we shop online.

Source: http://www.ibtimes.com/mobile-devices-are-changing-ecommerce-

heres-how-1297265 http://conversionxl.com/


Benefit: Easy to Compare

• People always compare

• The average consumer will visit 3 websites before making a purchase

• He/she will likely spend more money with sites they visit more frequently.

http://conversionxl.com/


Benefit: Free Shipping

For whatever reason,

a free shipping offer

that saves a

customer €5 is more

appealing to many

than a discount that

cuts the purchase

price by €8.



Benefit: Time Saving/ Easy to Buy

We want ways to get our products faster.

#1 having stuff buy regularly delivered to where you need it on a subscription basis.


Benefit: Time Saving/ Easy to Buy

#2 through product

recommendation

engines



Benefit: Range of Products

Selection matters:

You should have enough inventory to satisfy your customers demands.

Torrid:

“we have good looking stuff, probably in your size” which for the plus size market, is important.



Benefit: Peer Exchange – Community Building

Lean from others,

exchange

experience and

have a sense of

community



Benefits of Direct and Digital Marketing to

Sellers

• Tool to build customer relationships

• Low-cost, efficient, fast alternative to reach markets

• Flexible

• Access to buyers not reachable through other channels

• Cost reductions from:– reduced time in customer service

– online sales

– reduced printing and distribution costs of mktg. material

• Measurability of Marketing Effectiveness 17-10


Benefits of digital marketing – The 5Ss

The 5 Ss of Internet marketing


Sell more

Serve extra benefits

Speak 2 way

Save on Marketing

Sizzle


Task:What Components and

Forms of Digital Marketing

do you know?

Circle, where you have

personal experience


Forms and Components of „Digital Marketing“

Company Website

Google Adwords

PPC Advertising

Press Releases

Search Engine Marketing

Search Engine Optimization

Keyword Research

Landing Pages

Blogging

Content Marketing

Lead Capture Forms

Social Media Marketing

Facebook

Twitter

Google+

LinkedIn

Instagram

Pinterest

WhatsApp

Snapchat

Copywriting

eCommerce

WebDesign

Mobile Responsive

Affiliate Marketing

Autoresponders

EMail-Marketing

Video-Marketing

CRM Systems

Display Ads

Banner Ads

Podcasting

Graphics design

Text Message Marketing

Retargeting

Site Programming

…


How can we

categorize Digital

Marketing?


Goals to be achieved in Marketing

Information

Goals

Image

Goals

Economic

Goals

Improved customer insight

Presentation as a market

leader

Awareness, visits,

registrations, sales…

Improved product

insight

Presentation as innovation

leader

Customer loyalty and

-penetration

Generation of ideas

Presentation as a Good

Citizen Sales and recommendations

… …

Cost reduction


Key Online Media Types by Controllability



Key Online Media Types

by Digital Architecture

Source: modified after Storymaker

WEB-

SITE

Micro-

Site

Online-

PR

PUSH/PULL

News-

letter

Cu

sto

me

r

WEB-

SITE

Communication Channel

Corporate Hosting


Applications of Digital Marketing

• Transactional e-

commerce site

• Services-

oriented/relationship

building

• Brand Building site

• Portal or media site

• Social network or media

site

• Freemium service sitesNote that these types overlap!


Applications of Digital Marketing

• An advertising medium

• A direct-response medium

• A platform for sales transactions

• A lead-generation method

• A distribution channel

• A customer service mechanism

• A relationship-building medium


Channels require an

Integrated Digital Marketing Strategy

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice


The

Digital

Toolbox


How to use Digital Media in Marketing


The Social Media Toolbox

Slide by Solis + Thomas

Choose your channels wisely!


Types of Social Media Interaction

by Source

Existing Social Media

(Facebook, Xing, Twitter,

Linkedin, etc.)

Corporate Social Content

Corporate Blogs, Forums,

branded / unbranded Social

Networks, etc.)

Customer-facing

employee

Monitoring /

Data Mining

Market-triggered

social interactions

Business-triggered

social interactions

Social

Marketing

Social

Sales

Social

Service

Questions &

complaints

Market

Information

Customer

Preferences(outside-to-outside)

(inside-to-outside

inside-to-inside)

Market

Marketing Sales Service

Socially-enabled

Marketing

Socially-enabled

Sales

Socially-enabled

Service

F&E

Socially-enabled

F&E

based on Cipriani 2009

WEB-

SITE

Micro-

Site



by Purpose

Marketing Sales Service/Support

Social Marketing

Insight

Social Sales

Insight

Social Support

Insight

Innovation

Social Innovation

Insight

Rapid Social

Marketing Response

Rapid Social

Sales Response

Rapid Social

Support Response

Crowedsourced

F&E

Social Event

Management

Socially-enabled

Service

Social Campaign

Tracking

Sales Referal

Proactive Lead

Generierung


The Corporate Website: „Center Stage“


The Corporate Webseite: Vendors


The Corporate Website: „Center Stage“


The Corporate Website

• Company controls the content and the design

• Company can backlink all media channels to the

site

• One stop overview, monitor and archive

• Low cost professional site with Open Source tools

like Wordpress und Joomla, templates, plug-ins und

RSS feeds.


The Corporate Website

• Company must manage and maintain the site

including its layout and design, content, tech.

support and its URL(s)

• Corporate Websites are usually seen as push

marketing

• Cost and time intensive


The Corporate Blog today

blog.daimler.de

http://blog.daimler.de/

http://blog.daimler.de/


The Corporate Blog yesterday

blog.daimler.de


Dell Blogs Blogs, Forums


TechCenter Blog, Chat, Community


Dell Shares Investor Relations


The Corporate Blog

• You can show that you know a lot about a topic

• You are easily found by search engines (search engines follow backlinks; a good article easily generates 10-50 backlinks in a few days)

• It is free for the customer and free media for you as a vendor

• You can segment your target market nicely

• It can be the starting point for new content, hosts conversations, can provide context for news

• It can be a starting point for personal brands

• Small companies can get to the top of search engine rankings


The Corporate Blog

• Frequency is a must time consuming

• You are not credible in a “controlled” bog

• You don’t control what is said in an open employee

blog

• Generating relevant and interesting content on a

frequent basis is not easy


The Corporate Blog

Make some rules.

http://www.ibm.com/blogs/zz/en/guidelines.html

Empower all employees… they are the brand.

• Behave professionally and ethically.• Take personal responsibility.• Include a disclaimer: your opinions are yours,

not IBM’s.• Don’t pick fights.

“Use social media as a means to expose IBM’s experts—and expertise—to the world.”

Adam ChristensenManager, Social Media Communications

http://www-05.ibm.com/de/blueblog/

http://www-05.ibm.com/de/blueblog/


Social Networks


How Social Networks work

Think of Social Networks as a

sports club!


How Social Networks work 2

• Voluntary active or passive membership

• Special areas of interests

• One communicates where one has something to say (or

not), has an opinion, answers questions, asks questions, …

• If one is open, friendly and nice, friendships will develop

that value ones expertise and opinion

• Once one has built a reputation, it will be accepted, even

appreciated if one recommends and hints one ones

products and services, online shop, other products…


How Social Networks work 3

Friends are easily found,

one links up, meets, networks, …

and own expertise distributes …


Dell on Facebook Community

http://www.facebook.com/dell

http://www.facebook.com/dell


Dell on Facebook Ratings


Dell on Google +


Festool on Facebook


Festools: Brandscouts


Festools: Brandscouts gesteuert


Dialog MarketingFrage: Würdet Ihr Eure Festool Werkzeuge anderen

Personen ausleihen?


Dialog Marketing

User Support


Dialog Marketing

Complaints


Dialog MarketingProduct Comparison

28 Kommentare später …


Service Communication

Dialog Marketing


Pride

Dialog Marketing


Festool on Facebook Development ofFans

Mrz

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Mai

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Jun

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Sep

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Jan

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Feb

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Mrz

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Mai

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Jun

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Jan

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Entwicklung Facebook Fans

curtsey of Klaus Danner, Manager Customer Communications


Social Networks

• Direct customer communication

• Largest social Network

• Many forms of interaction

• Entertainment

• Full display of many mediaformats (pictures, movies, games, ...)

• Cool ideas result in huge reach

• Personal reputationmanagement

• Facebook statistics

• Efficient marketing tool

• Gives companies “a face”

or “faces”

• Connectable with twitter,

Google+, linkedin…

• Mobile app

• Location updates

• Many apps enlarge

functionality


Social Networks

• Uncontrolled environment

for employees

• Time-consuming

• Less exciting products

can have a hard time

gaining recognition

• Requires high frequency

of relevant content

generation

• Privacy problems– Like button (documenting all

activity on the website)

– Open FB tab in Browser

– Apps can result in spam

• Hard to separate private and

business

• FB can change the rules as

they like (free service)

Practice


Business Oriented Social Networks

• More serious environments, no personal content

• Suitable for personal business profile pages

• Customer + recruiter research

• Personal reputation management

• Business oriented groups

• Business contact initiation and management

• Increasingly commercial +

spam

• Time consuming

• Not all audiences are in

these networks

• Often regional


Enterprise Networks (ESN)

• an internal workplace that streamlines communication among co-workers (Mashable)

• Enterprise social networks will become the primary communication channels for noticing, deciding or acting on information relevant to carrying out work. (Gartner)

• Offer a variety of communication functionalities and media forms


Enterprise Social Networks

• Community approach

• One place for (almost) all

communication

• give employees a sense of

online community

• help forge connections between

departments, especially within

larger corporations

• Multimedia repository

• Increasingly commercial +

spam

• Time consuming

• Not all audiences are in

these networks

• Often regional


Content Sharing Platforms

• Online Communities for archiving and sharing

content such as:

– Photographs and images

– Videos

– Audios

– Presentations

http://www.youtube.com/watch_popup?v=-dnL00TdmLY

http://www.youtube.com/watch_popup?v=-dnL00TdmLY


Supplemented by a Digital Architecture

WEB-

SITE

Micro-

Site

Online-

PR

ONLINEPR

PUSH/PULL

Source: Storymaker

News-

letter

Communication Channel Corporate Hosting


Dell on YouTube


Festtool on Youtube


Content Sharing Platforms

Easy way to display,

archive and share

No need for own

infrastructure and

storage

Possible real time

reporting of events

Products / content is

ranked by audience

• Copyright problems

• Free data upload or

information spread is

limited

• No quality control of

content and material


Crowd Sourcing / Open Innovation


IdeaStorm Open Innovation Platform

19.12.2011


Dell Shop eCommercewith Social Content


Festool – Dealer Partnerships


Recommendation Platforms

• bad products are exposed

• Here users share experiences, perceptions and recommendations about products, services and organizations . Sometimes detailed discussions can evolve..

• Products are ranked by audience

• credibility

• good products are usually ranked positively


Microblogging

http://www.youtube.com/watch_popup?v=ddO9idmax0o&pop_ads=null



Twitter

Microblogging is a form of blogging that allows

users to send brief text updates (or micromedia

such as photos or audio clips) and publish them.

These messages can be submitted by a variety of

means like text messaging, instant messaging, E-

mail, digital audio or the web. (Wikipedia)


Dell on Twitter


DellOutlet Twitter as an Outletstore


DellOutlet Germany Twitter as an Outlet store


DellOutlet China Twitter as an Outletstore


Werkzeuge für höchste AnsprücheFestool on Twitter

curtsey of Klaus Danner, Manager Customer Communications


Werkzeuge für höchste AnsprücheFestool on Twitter twitter.com/festool

2.854 Follower 7/15978 Follower 7/12


DellCares Twitter as a Support Channel


Tools for the toughest demandsFesttool on Twitter ausgewählte Follower

curtsey of Klaus Danne, Manager Customer Communications


Twitter• Mobile

• real time

• fast

• cheap

• real-time market research

• advertising allowed

• direct customer contact

• great monitoring tool (alternative

clients, e.g. tritterdeck)

• interest based, not friendship

based

• global

• multimedia

• only short messages (Twitter 140

characters)

• short lifetime of tweets

• a lot of meaningless information

in twitter sphere

• difficult to measure

• spam / unpleasant followers

possible

• fast media for fast + easy

mistakes




Mobile Messaging

• WhatsApp: a cross-platform instant messaging application

that allows users to exchange text, image, video and audio messages for free. It is especially popular with end users to do international text messaging and phone calls. In addition to basic messaging, it provides group chat, phone service + location sharing options. Recently, first business information messages get distributed, e.g. trading & currency information.

• Snapchat: add captions, drawings and filters to photos and

videos (also known as "snaps"). Unlike other messaging apps, you can view snaps for a maximum of 10 seconds, and then it's gone for good. Anything shared through the service self-destructs, leaving no evidence that it existed.



by Source

Existing Social Media(Facebook, Xing, Twitter,

Linkedin, etc.)

Corporate Social ContentCorporate Blogs, Forums,

branded / unbranded Social Networks, etc.)

Customer-facingemployee

Monitoring / Data Mining

Market-triggered social

interactions

Business-triggered social

interactions

Social Marketing

SocialSales

Social Service

Questions &complaints

MarketInformation

CustomerPreferences

(outside-to-outside)

(inside-to-outsideinside-to-inside)

Market

Marketing Sales Service

Socially-enabledMarketing

Socially-enabledSales

Socially-enabledService

F&E

Socially-enabledF&E

based on Cipriani 2009

WEB-

SITE

Micro-

Site


Areas of Action in Social CRM


Social MarketingInsight

Social SalesInsight

Social Support Insight

Innovation

Social InnovationInsight

Rapid SocialMarketing Response

Rapid Social Sales Response

Rapid Social

Support Response

Crowedsourced

F&E

Social EventManagement


Social Campaign Tracking

based on Altimeter Group 2010

Sales Referal

Proactive LeadGenerierung


Starting point for Social Customer Relationship

Management


Social MarketingInsight

Social SalesInsight

Social Support Insight

Innovation

Social InnovationInsight

Rapid SocialMarketing Response

Rapid Social Sales Response

Rapid Social

Support Response

Crowedsourced

F&E

Social EventManagement


Social Campaign Tracking

based on Altimeter Group 2010

Sales Referal

Proactive LeadGenerierung


Social Media Monitoring

Remember: They talk about you!

• They do it with or without you … you should steer the

direction best you can!

• Dell Hell was a showcase starting point in 2005

19.12.2011


Why Social Media Monitoring? Customer Service and Support, CRM

Identify and address core customer needs

Sales advice

Setup / integration support

Runtime support

Customers help customers

Identify and bond with advocates

Identify and utilize star experts

Reduce support cost19.12.2011


Social Media MonitoringIssue Management

What expectations do different stakeholders hold?

Identify areas with potential for conflict early and address them proactively (before the broader public gets

aware)

Identify, monitor and construct actions to manage/reduce/neutralize stakeholder discrepancy of expectations.

Develop an “early warning system”

19.12.2011


Evolution in CRM

Transaction- and process oriented

Technology enabled customer processes in order to

support and organize sales-, marketing and support

activities (Shaw)

Eigenes Unternehmen

Konkurrenz Supplier / Partner

Kunde Kunde

KundeKunde

Kunde Kunde

Kunde

CRM 1.0

Eigenes Unternehmen

Konkurrenz Supplier / Partner

Kunde Kunde

KundeKunde

Kunde Kunde

Kunde

Kunde Kunde

Kunde Kunde

Kunde Kunde

CRM 2.0

Conversation- and process oriented

Involving customers for better customer insight,

trust building, building brand loyalty, problem

recognition and customer segmentation.

More customer insight through his network

connections and communities.


Dell „Social Media Listening Command Center“

Objective

Inform: customer feedback in real time

Listen and act: recognize alarm signals

early and act upon them

Ensure effective + appropriate

customer interaction

Support: Information + support for the

influencers and communities with

influence online

Target all relevant departments

customers and prospects

communities / influencer

SM Strategy control center

Check out:

Google Analytics, Klout Score; Hotsuite


on


Task:Discover Online Marketing

Strategies and their

DifferencesDiscuss how companies use direct, online,

social media and mobile marketing to reach

their desired outcome.17-4


Investigate Digital Marketing Strategies (Team Size 3)

Investigate two example of this list:

• Transactional e-commerce site– Amazon, Dell, Mymuesly.com, Apo-rot.de, e-bay, Audible

• Services-oriented/relationship building– Daimler Trucks, Festools.de, Accenture, British Gas, Salesforce, IBM, Bosch, Zeiss Camera Lenses,

Sage.com, Krones.de, Dell.com, Avira,

• Brand Building site– Nestle, Guinness, Coca-Cola, Litago.no, Tango, your favourite brand? …

Investigate one example of this list:

• Portal or media site– Yahoo!, Bing, Silicon.com, wall street journal, …

• Social network or media site– Xing, LinkedIn, Facebook, Twitter, …

• Freemium service sites– Evernote, Spotify, Feedly,


Hands on Exploitation (Team Size 3)

What comes across as their Value Proposition?

Who seems to be their Ideal Customer?

In what channels are they present?• Why are they there? (their goal)

• Who is their ideal customer in this activity? (their #1 target)

• What media channels do they use? Explain why you think they use them.

• Do they do cross media activities? Their 360° approach

• Do you think they achieve their goal? What do they do well, what should be improved? (your evaluation)

• Show us some examples of what they do -especially really good or really bad (teach us)

Take notes, prepare a presentation or demonstration

that SHOWS a bit what you saw,

you have 90 min preparation time

10 Minutes presentation time

we’ll discuss Digital Media while you work and present


Lead Generation

Online: The Digital

Launch Process


Key Campaign Planning Issues• The Goal– which specific goals should be set for online campaigns

and how do we measure success?

• The Reach– How to get traffic

• The Response– What response mechanisms will be most effective?


Campaigns are Not New


Digital Campaign Communication Flow

• One-to-one

• One-to-many

with and without the

Internet



Product / Project Launch Campaign

Source: Myrco Thum


Product Launch Formula

http://productlaunchformula.com/sideways-video/




Mental Triggers

• Community

• Anticipation

• Authority

• Reciprocity

• Social Proof

• Scarcity

• Conversation

• Trust

• Events/Rituals

• Likability

• Commitment


The

TrendsImage by Conversion XL


Figure 1.12 Evolution of web technologiesSource: Adapted from Spivack (2007)


A Starting Point:

Intelligent Personal Agents Nov. 2015

TNW News Nov 3, 2015


Campaign Characteristics Offline-Online



Dankeschön!

237 von EndSeitenzahl

HERZLICHEN DANK FÜR

IHRE AUFMERKSAMKEIT!

GIBT ES FRAGEN?

© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

http://www.steinbeis-sibe.de/