This document discusses digital marketing and marketing 4.0. It defines key concepts like digital convergence, digital media spaces, and the connected customer. It explains how marketing is shifting from traditional models to more collaborative approaches. Power is moving from companies to online communities. Customers are informed by social networks more than advertising. The future involves seamless online and offline experiences across the customer journey. Marketing 4.0 focuses on co-creation, dynamic pricing, communal activation, and conversation instead of the traditional 4Ps.

1. DIGITAL MARKETING
Author: Avi Chand
Company: Avi Chand Marketing
Phone: +91 99990 57404
Email: avi@avichand.com

3. Marketing Fundamentals
• American Marketing Association (AMA) Definition –
www.marketingpower.com
• Organizational Function, a set of processes for creating,
communicating, and delivering VALUE to customers +
managing customer relationships in ways that benefit the
organization and stakeholders

4. Marketing 1.0 to 4.0 – Kotler et al.
• 1.0: Product Driven Marketing
• 2.0: Customer-centric Marketing
• 3.0: Human-centric Marketing (Storytelling)
• 4.0: Technology-mediated Human-centric Marketing

5. Technology is converging
• As technology evolves, different technological systems
evolve towards performing similar tasks
• Digital convergence: Convergence of 4 industries into
one conglomerate: Information Technology,
Telecommunications, Consumer Electronics, and
Entertainment
• Voice, telephony, data, productivity applications, and
video share resources
• Telecommunications Convergence: Data and Voice
• Media Convergence: Interlinking of computing and other
information technologies and media content

6. Digital Media Spaces
• Internet is the new living room / town hall / central park
• Platforms that offer multiple, converged benefits to users
• Users obtain products, services, information, experiences
(decision making happens in spaces)
• Peer-to-peer behavior, democratized, neutral
• Brands are also netizens; face curated content consumption
• Facebook, Amazon, eBay, Airbnb, Google …

7. New Trends (in Digital Media Spaces)
• Sharing economy: peer-to-peer access to resources
(Uber, Airbnb, Car sharing, Travel sharing)
• Now Economy
• Omni-channel Integration
• Content Marketing
• Social CRM

8. Now Economy
• Connected devices will be everywhere, not only in
houses, vehicles, and factories
• User experience is getting unified: “discover -> buy ->
use -> get care” cycle as single touch point across
applications and devices
• The future of computing is at the edge: data crunching
will happen on devices that intersect with the real world,
not in the cloud. Technology advancements and business
need drive this trend
• Service differentiation will be in the content, not the
network. Telco companies see this and make strides in
this direction.

9. Omni-channel Integration
• Cross-channel Content Strategy
• Used to improve customer experience
• Communication channels are orchestrated to cooperate
rather than work in parallel
• More efficient than single channels or multi-channel
• Used in Finance, Healthcare, Government, Retail, and
Telecommunication Industries

10. Content Marketing
• Strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent content to
attract and retain a clearly defined audience — and,
ultimately, to drive profitable customer action
• Webinars, Ebooks, Blogs, Social Media, Info-graphics
• Idea is to educate and inform customers rather than hard-
sell them
• (Product, Service, Information, Experience)

11. Social CRM (Customer Relationship
Management)
• Fusion of social media and customer relationship
management
• A philosophy and a business strategy, supported by a
technology platform, business rules, workflow, processes
and social characteristics
• Designed to engage the customer in a collaborative
conversation in order to provide mutually beneficial value
in a trusted and transparent business environment

12. Marketing Convergence
• Technology convergence will lead to a convergence between
digital and traditional marketing
• Creation-Communication-Delivery of Value becomes more
personalized and collaborative
• People want high-touch in a digital world (spaces)
• Social media  Increasing personalization in goods and
services as customers “collaborate” with brands
• Big Data  products become more personalized and services
become more personal

13. Marketing Convergence
• Creation-Communication-Delivery of Value becomes
more personalized and collaborative
• Marketing should adapt to the changing nature of
customer paths (through digital spaces) in the digital
economy (as opposed to AIDA)
• Role of marketers: To guide customers through the
journey from awareness to advocacy, keeping in view
customer paths

14. Marketing 4.0
• In essence, Marketing 4.0 describes a deepening and a
broadening of human-centric marketing to cover every
aspect of the customer's journey, given the context of
technological and marketing convergence, and the rise of
digital spaces

15. Dynamics of Digital Media Spaces
• Power shifts to the connected customers
• From Vertical, Exclusive, and Individual to Horizontal,
Inclusive, and Social
• Internet has brought connectivity and transparency and
power shifts

16. From Vertical Powers to Horizontal Forces
• Companies such as Microsoft and Amazon had to acquire
smaller, yet more innovative companies like Skype and Zappos
• People go to Twitter for breaking news from citizen journalists
as opposed to a large network like CNN
• In the 13 – 18 age group in the United States, YouTube
celebrities are more popular than Hollywood celebrities
• Wall street financiers were shaken by the Occupy Wall Street
movement
• Power lies not with individuals but with social groups and
communities. People discover and share

17. From Vertical Powers to Horizontal Forces
• Customer communities have become ever more powerful and
vocal; they share stories, good and bad, about brands
• Random conversations about brands are now more credible
than targeted advertising campaigns
• Social circles have become the main source of influence,
overtaking external marketing communications
• Customers tend to follow the lead of their peers when deciding
which brand to choose
• Innovation is horizontal; the market supplies the ideas, and
companies commercialize the ideas.

18. From Vertical Powers to Horizontal Forces
• Most customers believe more in the f-factor (friends,
families, Facebook fans, Twitter followers) than in
marketing communications
• The trend has spurred the growth of communal rating
systems such as TripAdvisor and Yelp
• Brand should no longer view customers as mere targets
• A relationship between brands and customers should no
longer be vertical but instead it should be horizontal.
Customers should be considered peers

19. From Exclusive to Inclusive
• The disruptive innovations across business sectors have
brought cheaper and simpler products to the poor,
formerly considered a “non-market.”. Example: Aravind
Eye Care’s Cataract Surgery for $16
• With reverse innovation, new products can be developed
and introduced in the emerging markets before being sold
elsewhere.
• Example: GE's Mac 400, a portable battery-operated
electrocardiogram machine, which was designed to serve
rural villagers in India

20. From Individual to Social
• Given the connectivity we live in today, the weight of social
conformity is increasing in purchase decisions
• Customers care more and more about the opinions of others.
They also share their opinions and compile massive pools of
reviews
• Together, customers paint their own picture of companies and
brands, which is often very different from the image that
companies and brands intend to project
• Customers are paying more attention to their social circle in
making decisions. They seek advice and reviews, both online
and offline

21. The Connected Customer
• As opposed to being “isolated”
• Young, urban, middle-class, aspirational, recently moved to big
cities, embracing urbanization, strong mobility
• Specifically true of emerging economies
• In-store purchase decisions are based on online research on
price and quality
• Being digital natives, they can make purchase decisions
anywhere and anytime, involving a wide range of devices
• Despite their internet savvy, they love to experience things
physically

22. The Connected Customer
• They value high-touch engagement when interacting with
brands
• They are also very social; they communicate with and
trust one another
• They trust their network of friends and family more than
they trust corporations and brands

23. The Connected Customers
• Don’t see connectivity simply as technology – it is an
attitudinal shift that transforms customers; so is a strategic
shift for marketers
• Google research shows that eight out of ten smartphone
users in the United States do mobile research in-store
• When watching television advertising, more than half of
the TV audience in emerging economies conducts mobile
search

24. The Connected Customers
• At a strategic level, marketers must pursue more than just
mobile connectivity; they should pursue “experiential
connectivity”
• Internet is used to deliver a superior customer experience
in touchpoints between customers and brands
• The ultimate level is social connectivity, which is about
the strength of connection in communities of customers

25. The Connected Customer
• Online Interaction vs Offline Interaction: Online will not
replace offline because customers seek high-touch
because connectivity is not merely a technology, it is
human behavior
• Zappos, an Amazon acquisition, is a major online shoe
retailer – they use personal call center interactions to help
customers make purchases
• The characters of the new customers prompt us to realize
that the future of marketing will be a seamless blend of
online and offline experiences across customer paths

26. The Connected Customers
• Informed Customer vs Distracted Customer:
Connectivity also means customers are distracted by
opinions of others – and not open merely to the marketing
communications of brands
• Thus, marketers need to convert current customers to
advocates
• “Word-of-Mouth” is very important and needs to be
managed as part of marketing communications

27. Marketing 4.0 – three themes
• An approach that combines online and offline interaction
between companies and customers
• Storytelling moves to digital spaces in a world of connected
customers
• Digital interaction alone is not sufficient. In an increasingly online
world, offline touch represents a strong differentiation
• Marketing 4.0 also blends style with substance. In an
increasingly transparent world, authenticity is the most
valuable asset

28. Marketing 4.0 – three themes
• Finally, Marketing 4.0 leverages machine-to-machine
connectivity and artificial intelligence to improve marketing
productivity while leveraging human-to-human
connectivity to strengthen customer engagement

29. Marketing 4.0
• From Segments to Communities
• Naturally formed by customers within the boundaries that
they themselves define
• Will reject a company's attempt to force its way into these
webs of relationship
• STP should be made transparent to customers

30. Marketing 4.0
• From Brand Positioning and Differentiation to Brand
Clarification of Characters and Codes
• With disruptive technologies, shorter product life cycles,
and rapidly changing trends, a brand must be dynamic
enough to behave in certain ways in certain situations.
• What should remain consistent, however, are the brand
characters and codes.
• The character is the brand's raison d'être, its authentic
reason for being.

31. Marketing 4.0
• From 4Ps (Product, Price, Place, Promotion) to 4Cs (Co-
creation, Currency, Communal activation, and
Conversation)
• Co-creation: involving customers early in the ideation
stage,
• Dynamic pricing: possible due to big data analytics
• Communal activation: Peer-to-peer production / sharing
• Conversations: Mutually beneficial exchanges

32. The Customer Path / Journey
Image Source: Hubspot.com

33. The Marketing Funnel
Image Source: Code95.com

34. Tools and Technologies
Image Source: http://www.inboundmarketing.com.au
Used with permission

35. Names and Logos
• All brand names and logos used in the presentation are
property of their respective owners