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

5. What’s Ute’s STORY?Iaminbusinesstochange thelivesofmytechnology clientsbyfindingthem hungrycustomers that get them intosustainable growth!

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

18. Customer Driven Marketing http://launch.getaltitude.com/# Eben Pagan

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.

22. Customer Driven Digital Marketing

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