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Completely Revised:
A Customer Driven Digital Marketing
Dr. Ute Hillmer
Better Reality Marketing
Stuttgart, 23.11.2015
ACustomer Driven Marketing
Strategy: Creating and capturing
CUSTOMER VALUE in an
Online/Offline World
“Ourageofanxietyistheresultof
doingtodaysjobswithyesterdays
technology“
M.McLuhan
WHO is Dr. Ute
Hillmer?anexpertinpositioningandpromotingtechnology
products,withacarvingforinnovativeproductsthat
arenotself-explaining.
Withsuchproducts,humanbehaviorisoftenoutsidethe
boundariesofrationality-despiteitseconomiccontext.
Buyingbehaviorisheretypicallyaresultofsocial,cognitive
andemotionalfactors,alongwiththeeconomicones.
What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)
• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993
What’s Ute’s
STORY?Iaminbusinesstochange
thelivesofmytechnology
clientsbyfindingthem
hungrycustomers that get
them intosustainable growth!
and turn their customers into raving fans!
To take the most
out of this lecture
… be in
STATE!
Agenda
1. Marketing Today: the new Buying Decision Process
2. Customer Driven Digital Marketing
3. The Customer Dialog
4. Benefits of Digital Marketing
5. Porters 5 Forces
6. Hands on
7. Lead Generation Online
8. Bonus Material: Getting Started
Who is Digi Marketing for
The Trends
The Digital Toolbox
Creating and capturing CUSTOMER VALUE!
Marketing + Sales
Today:
a New Buying
Decision Process
Role-play to discover:
“Has Marketing changed?”
“Must Marketing change?”
Funnel-Metaphor for a Buying
Decision
active evaluation
many brands
Grafik close to Edelman 2010
buying decision
Initial
considerationTrigger
lesser and lesser brands
What brand creates
the most value to
me/us right now
and in the future?
Digitally supported Buying Decision
active
Evaluation
Post-Sales
Experience
Enlarged
Evaluation
Ambassador
Loyalty Loop
Active
Evaluation
Model close to Edelman 2010, p.65
Moment of Purchase
Initial
Consideration
Trigger
What brand creates
the most value to
me/us right now
and in the future?
Information Sources Today
The 2014 B2B Buyer Behaviour Survey
2014 B2B Buyer Behavior Survey
• Web search is the top source of information
• B2B buyers strategically browse social media
• The number of sources used to research and evaluate
purchase has increased
• There is an increased awareness of purchase options
• The evaluation process is longer and more satisfying
DemandGen Report Survey 2014
What Role does Social Media Play?
The 2014 B2B Buyer Behaviour Survey
The Core Consequences
1. Consumers and buyers connect with brands in
fundamentally new ways – often beyond
manufacturers’ or dealers' control.
2. They evaluate a shifting array of options during the
evaluation process and remain engaged with the
brand after purchase.
3. Customers can have as much information and
knowledge, as vendors do.
Its no longer about “information” it’s about creating and
capturing CUSTOMER VALUE!
You need a customer driven marketing strategy!
Marketing + Sales
Today:
a New Buying
Decision Process
Customer Driven Marketing
http://launch.getaltitude.com/#
Eben Pagan
From Product- Focus to Customer
Focus
Product
Price
Place
Promotion
Customer Needs
Customer Cost
Convenience / Access
Communication
McCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993
From Product- Focus to Customer
Focus
• Making a sale
• Abundance of products
in the nearby shopping
centers
• Television, magazine,
and direct-mail ads
• Satisfying customer
needs
• Imaginative Web sites
and mobile phone apps,
blogs, online videos, and
social media
• Reach customers
directly, personally, and
interactively
Traditional View Contemporary View
Kotler, Armstrong 2014
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
Marketing: Creating Customer Value and
Engagement
Amazon.com’s deep-down passion
for creating customer engagement,
value, and relationships has made it
the world’s leading online retailer.
Amazon has become the model for
companies that are obsessively and
successfully focused on delivering
customer value.
Customer Driven
Digital Marketing
November 2015 Dr. Ute Hillmer
17-2
Direct,Online,SocialMedia,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.
November 2015 Dr. Ute Hillmer
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
November 2015 Dr. Ute Hillmer
The NewDirectMarketingModel
=ANewBusinessModel
For many companies
today, direct and
digital marketing
constitute a complete
model for doing
business.
Copyright © 2016 Pearson Education, Inc.
17-7
November 2015 Dr. Ute Hillmer
WhatDigitalBusinessesDoYouUseToday?
• What complete digital B-models do you use
today?
• Which additional ones do you know?
November 2015 Dr. Ute Hillmer
ANewArea in Products and Channels
Illustration copyright of Steve Blank, „The Startup Owners Manual“
November 2015 Dr. Ute Hillmer
RapidGrowthof DirectandDigital Marketing
Direct 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 research
Source: DMA
November 2015 Dr. Ute Hillmer
Task:
What Components and
Forms of Digital Marketing
do you know?
Circle, where you have personal
experience
Pin them on the wall!
November 2015 Dr. Ute Hillmer
FormsandComponentsof „DigitalMarketing“
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
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
…
November 2015 Dr. Ute Hillmer
The
to get started
November 2015 Dr. Ute Hillmer
The Customer
Dialog is
changing
November 2015 Dr. Ute Hillmer
Dialog Marketing
Is nothing new:
customer visits
telephone calls
discussions
email
business lunches
mail
trade shows
…
November 2015 Dr. Ute Hillmer
But Dialog Marketing had to change …
Customer Dialog is emancipated
Sender Receiver
November 2015 Dr. Ute Hillmer
Changing Communication to a Dialog
Sender
Receiver
November 2015 Dr. Ute Hillmer
CommunicationModelsfor
TraditionalandNewMedia
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
TheDegreeof Individualization
forTraditionaland NewMedia
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
(a) traditional
media: same
message
(b) new media =
often unique
messages and
more
information
exchange
between
customers
November 2015 Dr. Ute Hillmer
Chances + Risks of a Customer Dialog
competitiveadvantage
When companies look at their
products and services from a
customer point of view, they can gain
huge competitive advantages.
November 2015 Dr. Ute Hillmer
Chances + Risks of a Customer Dialog
enhancecustomerloyalty
Engagement of the
customer
+
Interest and appreciation
by the selling company
enhances customer
loyalty
November 2015 Dr. Ute Hillmer
Chances + Risks of a Customer Dialog truly
understandcustomerneedsandenhanceproducts
It’s more than online information
gathering.
Customers exchange their needs, their
preferences and their interests online.
November 2015 Dr. Ute Hillmer
Chances + Risks of a Customer Dialog
wincustomers
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
November 2015 Dr. Ute Hillmer
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
November 2015 Dr. Ute Hillmer
Consequences: The Brand changes
The customer
fundamentally
influences the brand
– beyond any
marketing control
November 2015 Dr. Ute Hillmer
Consequences: Support changes
Customers exchange
experiences and
insights. They can
often help each other
timely and with a lot of
detailes knowledg
November 2015 Dr. Ute Hillmer
Consequences: The Dialog changes
Customers can do
more than buy –
satisfied customers
are the best sales
team
November 2015 Dr. Ute Hillmer
Task:
What are Benefits of Digital
Marketing to Buyers and to
Sellers?
Pin / write them on the wall!
November 2015 Dr. Ute Hillmer
Benefitsof DirectandDigitalMarketingto
Buyers
• Convenience
• Ready access to many products
• Access to comparative information about
companies, products, and competitors
• Interactive and immediate
17-9
November 2015 Dr. Ute Hillmer
ThePowerof Recommendations:
„I‘llHaveWhatShe isHaving“
November 2015 Dr. Ute Hillmer
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
November 2015 Dr. Ute Hillmer
Benefit: Low Prices + Price Comparison
• Price
transparency
• Easy price
comparison
• Comparison
Shopping
Engines
Source Will Web Browse for Food: Wall Street Journal
November 2015 Dr. Ute Hillmer
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/
November 2015 Dr. Ute Hillmer
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/
November 2015 Dr. Ute Hillmer
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/
November 2015 Dr. Ute Hillmer
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.
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
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.
November 2015 Dr. Ute Hillmer
Benefit: Time Saving/ Easy to Buy
#2 through product
recommendation
engines
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
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.
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
Benefitsof DirectandDigitalMarketingto
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
November 2015 Dr. Ute Hillmer
Benefitsofdigitalmarketing–The5Ss
The 5 Ss of Internet marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Sell more
Serve extra benefits
Speak 2 way
Save on Marketing
Sizzle
November 2015 Dr. Ute Hillmer
Porter’s Five Forces
Chart: http://www.ecclesiastical.com
November 2015 Dr. Ute Hillmer
Task:
How do the 5 Forces
change with digital
marketing?
Teams of 3, 10 Minutes to collect + discuss
November 2015 Dr. Ute Hillmer
ImpactoftheInternetonthefivecompetitiveforces
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
How can we
categorize Digital
Marketing?
Let’s take out selection and find
categories!
November 2015 Dr. Ute Hillmer
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
November 2015 Dr. Ute Hillmer
Key Online Media Types by Controllability
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
Key Online Media Types
by Communication Concept
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
Key Online Media Types
by Marketing Categories
Chaffey and Smith, 2008
November 2015 Dr. Ute Hillmer
Key Online Media Types
by DigitalArchitecture
Source: modified after Storymaker
WEB-
SITE
Micro-
Site
Online-
PR
PUSH/PULL
News-
letter
Customer
WEB-
SITE
Communication
Channel
Corporate Hosting
November 2015 Dr. Ute Hillmer
Objective of Web Presence
• Transactional e-
commerce site
• Services-
oriented/relationship
building
• Brand Building site
• Portal or media site
• Social network or
media site
• Freemium service
sites
Note that these types overlap!
November 2015 Dr. Ute Hillmer
Channelsrequirean
IntegratedDigitalMarketingStrategy
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
Old and New Media Compared
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
on
November 2015 Dr. Ute Hillmer
Task:
Discover Online Marketing
Strategies and their
Differences
Discuss how companies use direct, online,
social media and mobile marketing to their
advantage and to reach their outcome.
November 2015 Dr. Ute Hillmer
Investigate Digital Marketing Strategies
(TeamSize 3)
Investigatetwo examplesofthislist(orsuggestanotheronetome)
• 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, Datev
• Brand Building site
– Nestle, Guinness, Coca-Cola, Litago.no, Tango, your favourite brand? …
Investigatetwo moreexamplesofthislist(orsuggestanotheronetome)
• 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,
November 2015 Dr. Ute Hillmer
Hands on Exploitation (TeamSize3)
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)
• How do they do it? 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 what you saw,
you have 120 min preparation time
15 Minutes presentation time
we’ll discuss Digital Media while you work and present
November 2015 Dr. Ute Hillmer
Lead Generation
Online: The Digital
Launch Process
November 2015 Dr. Ute Hillmer
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?
November 2015 Dr. Ute Hillmer
Campaigns are Not New
November 2015 Dr. Ute Hillmer
Digital Campaign Communication Flow
• One-to-one
• One-to-many
with and without the
Internet
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer Source: Millward Brown Qualitative
Campaign Characteristics Offline - Online
True?
November 2015 Dr. Ute Hillmer
Product / Project Launch Campaign
Source: Myrco Thum
November 2015 Dr. Ute Hillmer
Product Launch Formula
http://productlaunchformula.com/sideways-video/
November 2015 Dr. Ute Hillmer
Mental Triggers
• Community
• Anticipation
• Authority
• Reciprocity
• Social Proof
• Scarcity
• Conversation
• Trust
• Events/Rituals
• Likability
• Commitment
November 2015 Dr. Ute Hillmer
Campaign Characteristics Offline-Online
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
Properties of Different Media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
Measures used for setting campaign objectives or assessing campaign success
increasing in sophistication from bottom to top
Measures for Campaign Success
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
Range of Response Mechanisms from Online
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
November 2015 Dr. Ute Hillmer
Excurse:
Getting Started with
Digital Marketing
November 2015 Dr. Ute Hillmer
How to get started with Digital Marketing
1. StayFocusedonyourObjective
• Which channel, which medium,
which platform will help me reach
my target?
• Define marketing goal
• Define target markets
Be where your
customers are!!
November 2015 Dr. Ute Hillmer
How to get started with Digital Marketing?
2. Whatdoyouintenttoachieve?
• Win additional customers
• Gain a new customer base
• Increase sales
• Increase awareness
• Enter new markets
• Increase communication with
customers
• Increase website traffic
• Increase image
• Change image
• Increase online reputation
As with traditional marketing:
set yourself realistic goals!
November 2015 Dr. Ute Hillmer
Howto getstartedwithDigitalMarketing
3. Whereareyourcustomershavingtheirconversations?
“Let's spend a day in your customers
media mix and learn to understand
what they experience, how they feel,
and most of all, how they
communicate and interact. “
Kevin Colleran, Facebooks #1 Sales Rep
LISTEN!!
talk
energize
support
Integrate
BOND
November 2015 Dr. Ute Hillmer
How to get started with Digital Marketing
4.don’tgetconfused,thinkofCustomerTouchPoints
instead…
Source: Wave 7
November 2015 Dr. Ute Hillmer
AGeneric Digital Marketing Strategy
Development Process
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
RACE: Reach-Act (Interact)-Convert-
Engage
Smart Insight 2013
November 2015 Dr. Ute Hillmer
Figure 1.11
Social Media Marketing Radar
Chaffey, SmartInsights.com, 2011
November 2015 Dr. Ute Hillmer
Website Development Project Plan
Chaffey, SmartInsights.com, 2011
November 2015 Dr. Ute Hillmer
Excurse B2B:
Who is Digital
Marketing for ?
November 2015 Dr. Ute Hillmer
The Nerd is Online
November 2015 Dr. Ute Hillmer
B2B Decision Makers might not be online
–but their assistants may
• Digital Marketing is impacting
how B2B decisions are being
made.
– Background research
– Learning + Expertise
– Search results impact
November 2015 Dr. Ute Hillmer
The B2B buyers are
no shoppers,
they are researchers!
37% of B2B
Buyers use
Social to help
them make
purchasing
decisions
(IDC)
November 2015 Dr. Ute Hillmer
Social Media and the Buying Process
Post-sales
user-experience reports
support + help
complains, learning, upgrading
Sales
looking for the best deal
Decision Making
learning about the topic,
selecting and weighting evaluation criteria
evaluating options,
Pre-sales
looking for information
November 2015 Dr. Ute Hillmer
Customers + Web 2.0Technologies
November 2015 Dr. Ute Hillmer
Who is Online?
November 2015 Dr. Ute Hillmer
For How Long?
November 2015 Dr. Ute Hillmer
Key Information Sources
The 2014 B2B Buyer Behaviour Survey
November 2015 Dr. Ute Hillmer
What Role does Social Media Play?
The 2014 B2B Buyer Behaviour Survey
November 2015 Dr. Ute Hillmer
If you think…
your Company does not have to be Online,
Think again…
November 2015 Dr. Ute Hillmer
The Dell Hell Case Lesson
People talk about your company - with or without you
… don’t you want to steer the direction best you can?
Dell Hell: starting point in 2005
November 2015 Dr. Ute Hillmer
Dell Hell
November 2015 Dr. Ute Hillmer
Dell Hell 2
“Obviously a lot of people are in the blogosphere
talking about their issues with Dell products, why aren’t
we doing anything about it?”
Michael Dell, 2006
November 2015 Dr. Ute Hillmer
Dell
2006:“Obviously a lot of people are in the blogosphere talking about
their issues with Dell products, why aren’t we doing anything about
it?” Michael Dell, 2006
2011: Dell named “most social brand
of 100 top brands”
November 2015 Dr. Ute Hillmer
The
Trends
Image by Conversion XL
November 2015 Dr. Ute Hillmer
Figure 1.12 Evolution of web technologies
Source: Adapted from Spivack (2007)
November 2015 Dr. Ute Hillmer
Intelligent PersonalAgents Nov. 2015
TNW News Nov 3, 2015
November 2015 Dr. Ute Hillmer
November 2015 Dr. Ute Hillmer
Dankeschön!
252 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

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Customer Driven Digital Marketing

  • 1. Completely Revised: A Customer Driven Digital Marketing Dr. Ute Hillmer Better Reality Marketing Stuttgart, 23.11.2015
  • 2. ACustomer Driven Marketing Strategy: Creating and capturing CUSTOMER VALUE in an Online/Offline World “Ourageofanxietyistheresultof doingtodaysjobswithyesterdays technology“ M.McLuhan
  • 3. WHO is Dr. Ute Hillmer?anexpertinpositioningandpromotingtechnology products,withacarvingforinnovativeproductsthat arenotself-explaining. Withsuchproducts,humanbehaviorisoftenoutsidethe boundariesofrationality-despiteitseconomiccontext. Buyingbehaviorisheretypicallyaresultofsocial,cognitive andemotionalfactors,alongwiththeeconomicones.
  • 4. What did Ute do? • 27 years of international marketing (HP, CoCreate, MFG Innovation Agency State of BW, Better Reality Marketing) • Dissertation in business administration, behavioral economics in technology marketing: Technology Acceptance in Mechatronics • Worldwide company and product communication; mainly 3 continents (America, Europe, Asia) • Product-, program-, channel-, partner marketing, marketing communication, branding, positioning • Responsible for operative, strategic + corporate marketing, branding, sales training • Experienced in large corporations, SMEs and freelance work as well as political institutions. • Responsible for the first international website of Hewlett Packard in 1993
  • 6. and turn their customers into raving fans!
  • 7. To take the most out of this lecture … be in STATE!
  • 8. Agenda 1. Marketing Today: the new Buying Decision Process 2. Customer Driven Digital Marketing 3. The Customer Dialog 4. Benefits of Digital Marketing 5. Porters 5 Forces 6. Hands on 7. Lead Generation Online 8. Bonus Material: Getting Started Who is Digi Marketing for The Trends The Digital Toolbox Creating and capturing CUSTOMER VALUE!
  • 9. Marketing + Sales Today: a New Buying Decision Process
  • 10. Role-play to discover: “Has Marketing changed?” “Must Marketing change?”
  • 11. Funnel-Metaphor for a Buying Decision active evaluation many brands Grafik close to Edelman 2010 buying decision Initial considerationTrigger lesser and lesser brands What brand creates the most value to me/us right now and in the future?
  • 12. Digitally supported Buying Decision active Evaluation Post-Sales Experience Enlarged Evaluation Ambassador Loyalty Loop Active Evaluation Model close to Edelman 2010, p.65 Moment of Purchase Initial Consideration Trigger What brand creates the most value to me/us right now and in the future?
  • 13. Information Sources Today The 2014 B2B Buyer Behaviour Survey
  • 14. 2014 B2B Buyer Behavior Survey • Web search is the top source of information • B2B buyers strategically browse social media • The number of sources used to research and evaluate purchase has increased • There is an increased awareness of purchase options • The evaluation process is longer and more satisfying DemandGen Report Survey 2014
  • 15. What Role does Social Media Play? The 2014 B2B Buyer Behaviour Survey
  • 16. The Core Consequences 1. Consumers and buyers connect with brands in fundamentally new ways – often beyond manufacturers’ or dealers' control. 2. They evaluate a shifting array of options during the evaluation process and remain engaged with the brand after purchase. 3. Customers can have as much information and knowledge, as vendors do. Its no longer about “information” it’s about creating and capturing CUSTOMER VALUE! You need a customer driven marketing strategy!
  • 17. Marketing + Sales Today: a New Buying Decision Process
  • 19. From Product- Focus to Customer Focus Product Price Place Promotion Customer Needs Customer Cost Convenience / Access Communication McCarthy: Basic Marketing: A managerial approach, 1960 Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993
  • 20. From Product- Focus to Customer Focus • Making a sale • Abundance of products in the nearby shopping centers • Television, magazine, and direct-mail ads • Satisfying customer needs • Imaginative Web sites and mobile phone apps, blogs, online videos, and social media • Reach customers directly, personally, and interactively Traditional View Contemporary View Kotler, Armstrong 2014
  • 21. Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014 Marketing: Creating Customer Value and Engagement Amazon.com’s deep-down passion for creating customer engagement, value, and relationships has made it the world’s leading online retailer. Amazon has become the model for companies that are obsessively and successfully focused on delivering customer value.
  • 23. November 2015 Dr. Ute Hillmer 17-2 Direct,Online,SocialMedia,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.
  • 24. November 2015 Dr. Ute Hillmer 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
  • 25. November 2015 Dr. Ute Hillmer The NewDirectMarketingModel =ANewBusinessModel For many companies today, direct and digital marketing constitute a complete model for doing business. Copyright © 2016 Pearson Education, Inc. 17-7
  • 26. November 2015 Dr. Ute Hillmer WhatDigitalBusinessesDoYouUseToday? • What complete digital B-models do you use today? • Which additional ones do you know?
  • 27. November 2015 Dr. Ute Hillmer ANewArea in Products and Channels Illustration copyright of Steve Blank, „The Startup Owners Manual“
  • 28. November 2015 Dr. Ute Hillmer RapidGrowthof DirectandDigital Marketing Direct 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 research Source: DMA
  • 29. November 2015 Dr. Ute Hillmer Task: What Components and Forms of Digital Marketing do you know? Circle, where you have personal experience Pin them on the wall!
  • 30. November 2015 Dr. Ute Hillmer FormsandComponentsof „DigitalMarketing“ 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 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 …
  • 31. November 2015 Dr. Ute Hillmer The to get started
  • 32. November 2015 Dr. Ute Hillmer The Customer Dialog is changing
  • 33. November 2015 Dr. Ute Hillmer Dialog Marketing Is nothing new: customer visits telephone calls discussions email business lunches mail trade shows …
  • 34. November 2015 Dr. Ute Hillmer But Dialog Marketing had to change … Customer Dialog is emancipated Sender Receiver
  • 35. November 2015 Dr. Ute Hillmer Changing Communication to a Dialog Sender Receiver
  • 36. November 2015 Dr. Ute Hillmer CommunicationModelsfor TraditionalandNewMedia Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
  • 37. November 2015 Dr. Ute Hillmer TheDegreeof Individualization forTraditionaland NewMedia Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013 (a) traditional media: same message (b) new media = often unique messages and more information exchange between customers
  • 38. November 2015 Dr. Ute Hillmer Chances + Risks of a Customer Dialog competitiveadvantage When companies look at their products and services from a customer point of view, they can gain huge competitive advantages.
  • 39. November 2015 Dr. Ute Hillmer Chances + Risks of a Customer Dialog enhancecustomerloyalty Engagement of the customer + Interest and appreciation by the selling company enhances customer loyalty
  • 40. November 2015 Dr. Ute Hillmer Chances + Risks of a Customer Dialog truly understandcustomerneedsandenhanceproducts It’s more than online information gathering. Customers exchange their needs, their preferences and their interests online.
  • 41. November 2015 Dr. Ute Hillmer Chances + Risks of a Customer Dialog wincustomers 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
  • 42. November 2015 Dr. Ute Hillmer 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
  • 43. November 2015 Dr. Ute Hillmer Consequences: The Brand changes The customer fundamentally influences the brand – beyond any marketing control
  • 44. November 2015 Dr. Ute Hillmer Consequences: Support changes Customers exchange experiences and insights. They can often help each other timely and with a lot of detailes knowledg
  • 45. November 2015 Dr. Ute Hillmer Consequences: The Dialog changes Customers can do more than buy – satisfied customers are the best sales team
  • 46. November 2015 Dr. Ute Hillmer Task: What are Benefits of Digital Marketing to Buyers and to Sellers? Pin / write them on the wall!
  • 47. November 2015 Dr. Ute Hillmer Benefitsof DirectandDigitalMarketingto Buyers • Convenience • Ready access to many products • Access to comparative information about companies, products, and competitors • Interactive and immediate 17-9
  • 48. November 2015 Dr. Ute Hillmer ThePowerof Recommendations: „I‘llHaveWhatShe isHaving“
  • 49. November 2015 Dr. Ute Hillmer 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
  • 50. November 2015 Dr. Ute Hillmer Benefit: Low Prices + Price Comparison • Price transparency • Easy price comparison • Comparison Shopping Engines Source Will Web Browse for Food: Wall Street Journal
  • 51. November 2015 Dr. Ute Hillmer 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/
  • 52. November 2015 Dr. Ute Hillmer 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/
  • 53. November 2015 Dr. Ute Hillmer 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/
  • 54. November 2015 Dr. Ute Hillmer 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. http://conversionxl.com/
  • 55. November 2015 Dr. Ute Hillmer 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.
  • 56. November 2015 Dr. Ute Hillmer Benefit: Time Saving/ Easy to Buy #2 through product recommendation engines http://conversionxl.com/
  • 57. November 2015 Dr. Ute Hillmer 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. http://conversionxl.com/
  • 58. November 2015 Dr. Ute Hillmer Benefitsof DirectandDigitalMarketingto 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
  • 59. November 2015 Dr. Ute Hillmer Benefitsofdigitalmarketing–The5Ss The 5 Ss of Internet marketing Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013 Sell more Serve extra benefits Speak 2 way Save on Marketing Sizzle
  • 60. November 2015 Dr. Ute Hillmer Porter’s Five Forces Chart: http://www.ecclesiastical.com
  • 61. November 2015 Dr. Ute Hillmer Task: How do the 5 Forces change with digital marketing? Teams of 3, 10 Minutes to collect + discuss
  • 62. November 2015 Dr. Ute Hillmer ImpactoftheInternetonthefivecompetitiveforces Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
  • 63. November 2015 Dr. Ute Hillmer How can we categorize Digital Marketing? Let’s take out selection and find categories!
  • 64. November 2015 Dr. Ute Hillmer 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
  • 65. November 2015 Dr. Ute Hillmer Key Online Media Types by Controllability Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
  • 66. November 2015 Dr. Ute Hillmer Key Online Media Types by Communication Concept Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
  • 67. November 2015 Dr. Ute Hillmer Key Online Media Types by Marketing Categories Chaffey and Smith, 2008
  • 68. November 2015 Dr. Ute Hillmer Key Online Media Types by DigitalArchitecture Source: modified after Storymaker WEB- SITE Micro- Site Online- PR PUSH/PULL News- letter Customer WEB- SITE Communication Channel Corporate Hosting
  • 69. November 2015 Dr. Ute Hillmer Objective of Web Presence • Transactional e- commerce site • Services- oriented/relationship building • Brand Building site • Portal or media site • Social network or media site • Freemium service sites Note that these types overlap!
  • 70. November 2015 Dr. Ute Hillmer Channelsrequirean IntegratedDigitalMarketingStrategy Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 71. November 2015 Dr. Ute Hillmer Old and New Media Compared Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 72. November 2015 Dr. Ute Hillmer on
  • 73. November 2015 Dr. Ute Hillmer Task: Discover Online Marketing Strategies and their Differences Discuss how companies use direct, online, social media and mobile marketing to their advantage and to reach their outcome.
  • 74. November 2015 Dr. Ute Hillmer Investigate Digital Marketing Strategies (TeamSize 3) Investigatetwo examplesofthislist(orsuggestanotheronetome) • 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, Datev • Brand Building site – Nestle, Guinness, Coca-Cola, Litago.no, Tango, your favourite brand? … Investigatetwo moreexamplesofthislist(orsuggestanotheronetome) • 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,
  • 75. November 2015 Dr. Ute Hillmer Hands on Exploitation (TeamSize3) 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) • How do they do it? 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 what you saw, you have 120 min preparation time 15 Minutes presentation time we’ll discuss Digital Media while you work and present
  • 76. November 2015 Dr. Ute Hillmer Lead Generation Online: The Digital Launch Process
  • 77. November 2015 Dr. Ute Hillmer 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?
  • 78. November 2015 Dr. Ute Hillmer Campaigns are Not New
  • 79. November 2015 Dr. Ute Hillmer Digital Campaign Communication Flow • One-to-one • One-to-many with and without the Internet Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 80. November 2015 Dr. Ute Hillmer Source: Millward Brown Qualitative Campaign Characteristics Offline - Online True?
  • 81. November 2015 Dr. Ute Hillmer Product / Project Launch Campaign Source: Myrco Thum
  • 82. November 2015 Dr. Ute Hillmer Product Launch Formula http://productlaunchformula.com/sideways-video/
  • 83. November 2015 Dr. Ute Hillmer Mental Triggers • Community • Anticipation • Authority • Reciprocity • Social Proof • Scarcity • Conversation • Trust • Events/Rituals • Likability • Commitment
  • 84. November 2015 Dr. Ute Hillmer Campaign Characteristics Offline-Online Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 85. November 2015 Dr. Ute Hillmer Properties of Different Media Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 86. November 2015 Dr. Ute Hillmer Measures used for setting campaign objectives or assessing campaign success increasing in sophistication from bottom to top Measures for Campaign Success Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 87. November 2015 Dr. Ute Hillmer Range of Response Mechanisms from Online Chaffey et al., Digital Marketing: Strategy, Implementation and Practice
  • 88. November 2015 Dr. Ute Hillmer Excurse: Getting Started with Digital Marketing
  • 89. November 2015 Dr. Ute Hillmer How to get started with Digital Marketing 1. StayFocusedonyourObjective • Which channel, which medium, which platform will help me reach my target? • Define marketing goal • Define target markets Be where your customers are!!
  • 90. November 2015 Dr. Ute Hillmer How to get started with Digital Marketing? 2. Whatdoyouintenttoachieve? • Win additional customers • Gain a new customer base • Increase sales • Increase awareness • Enter new markets • Increase communication with customers • Increase website traffic • Increase image • Change image • Increase online reputation As with traditional marketing: set yourself realistic goals!
  • 91. November 2015 Dr. Ute Hillmer Howto getstartedwithDigitalMarketing 3. Whereareyourcustomershavingtheirconversations? “Let's spend a day in your customers media mix and learn to understand what they experience, how they feel, and most of all, how they communicate and interact. “ Kevin Colleran, Facebooks #1 Sales Rep LISTEN!! talk energize support Integrate BOND
  • 92. November 2015 Dr. Ute Hillmer How to get started with Digital Marketing 4.don’tgetconfused,thinkofCustomerTouchPoints instead… Source: Wave 7
  • 93. November 2015 Dr. Ute Hillmer AGeneric Digital Marketing Strategy Development Process Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
  • 94. November 2015 Dr. Ute Hillmer RACE: Reach-Act (Interact)-Convert- Engage Smart Insight 2013
  • 95. November 2015 Dr. Ute Hillmer Figure 1.11 Social Media Marketing Radar Chaffey, SmartInsights.com, 2011
  • 96. November 2015 Dr. Ute Hillmer Website Development Project Plan Chaffey, SmartInsights.com, 2011
  • 97. November 2015 Dr. Ute Hillmer Excurse B2B: Who is Digital Marketing for ?
  • 98. November 2015 Dr. Ute Hillmer The Nerd is Online
  • 99. November 2015 Dr. Ute Hillmer B2B Decision Makers might not be online –but their assistants may • Digital Marketing is impacting how B2B decisions are being made. – Background research – Learning + Expertise – Search results impact
  • 100. November 2015 Dr. Ute Hillmer The B2B buyers are no shoppers, they are researchers! 37% of B2B Buyers use Social to help them make purchasing decisions (IDC)
  • 101. November 2015 Dr. Ute Hillmer Social Media and the Buying Process Post-sales user-experience reports support + help complains, learning, upgrading Sales looking for the best deal Decision Making learning about the topic, selecting and weighting evaluation criteria evaluating options, Pre-sales looking for information
  • 102. November 2015 Dr. Ute Hillmer Customers + Web 2.0Technologies
  • 103. November 2015 Dr. Ute Hillmer Who is Online?
  • 104. November 2015 Dr. Ute Hillmer For How Long?
  • 105. November 2015 Dr. Ute Hillmer Key Information Sources The 2014 B2B Buyer Behaviour Survey
  • 106. November 2015 Dr. Ute Hillmer What Role does Social Media Play? The 2014 B2B Buyer Behaviour Survey
  • 107. November 2015 Dr. Ute Hillmer If you think… your Company does not have to be Online, Think again…
  • 108. November 2015 Dr. Ute Hillmer The Dell Hell Case Lesson People talk about your company - with or without you … don’t you want to steer the direction best you can? Dell Hell: starting point in 2005
  • 109. November 2015 Dr. Ute Hillmer Dell Hell
  • 110. November 2015 Dr. Ute Hillmer Dell Hell 2 “Obviously a lot of people are in the blogosphere talking about their issues with Dell products, why aren’t we doing anything about it?” Michael Dell, 2006
  • 111. November 2015 Dr. Ute Hillmer Dell 2006:“Obviously a lot of people are in the blogosphere talking about their issues with Dell products, why aren’t we doing anything about it?” Michael Dell, 2006 2011: Dell named “most social brand of 100 top brands”
  • 112. November 2015 Dr. Ute Hillmer The Trends Image by Conversion XL
  • 113. November 2015 Dr. Ute Hillmer Figure 1.12 Evolution of web technologies Source: Adapted from Spivack (2007)
  • 114. November 2015 Dr. Ute Hillmer Intelligent PersonalAgents Nov. 2015 TNW News Nov 3, 2015
  • 115. November 2015 Dr. Ute Hillmer
  • 116. November 2015 Dr. Ute Hillmer Dankeschön!
  • 117. 252 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