Completely Revised:A Customer Driven Digital Marketing
Dr. Ute Hillmer
Better Reality Marketing
Stuttgart, 23.11.2015
A Customer Driven Marketing
Strategy: Creating and capturing
CUSTOMER VALUE in an
Online/Offline World
“Ourage ofanxiety is the result of
doing todays jobs with yesterdays
technology“M. McLuhan
WHO is Dr. Ute Hillmer? an expert in positioning and promoting technology
products, with a carving for innovative products that are not self-explaining.
With such products, human behavior is often outside the boundaries of rationality -despite its economic context.
Buying behavior is here typically a result of social, cognitive and emotional factors, along with the economic ones.
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?
I am in business to change the lives of my technology
clients by finding them hungry customers that get
them into sustainable growth!
Agenda1. 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!
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?
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
The Core Consequences1. 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!
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.
November 2015 Dr. Ute Hillmer
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.
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 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
November 2015 Dr. Ute Hillmer
What Digital Businesses Do You Use Today?
• What complete digital B-models do you use
today?
• Which additional ones do you know?
November 2015 Dr. Ute Hillmer
A New Area in Products and Channels
Illustration copyright of Steve Blank, „The Startup Owners Manual“
November 2015 Dr. Ute Hillmer
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
November 2015 Dr. Ute Hillmer
Task:What Components and
Forms of Digital Marketing
do you know?Circle, where you have personal
experiencePin them on the wall!
November 2015 Dr. Ute Hillmer
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
Google+
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
Dialog Marketing
Is nothing new:
customer visits
telephone calls
discussions
business lunches
trade shows
…
November 2015 Dr. Ute Hillmer
But Dialog Marketing had to change …
Customer Dialog is emancipated
Sender Receiver
November 2015 Dr. Ute Hillmer
Communication Models for
Traditional and New Media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
November 2015 Dr. Ute Hillmer
The Degree of Individualization
for Traditional and New Media
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 Dialogcompetitive advantage
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 enhance customer loyalty
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
understand customer needs and enhance products
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 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
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
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
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
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
November 2015 Dr. Ute Hillmer
Benefits of digital marketing – The 5Ss
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
Task:How do the 5 Forces
change with digital
marketing?Teams of 3, 10 Minutes to collect + discuss
November 2015 Dr. Ute Hillmer
Impact of the Internet on the five competitive forces
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 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
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 sitesNote that these types overlap!
November 2015 Dr. Ute Hillmer
Channels require an
Integrated Digital Marketing Strategy
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
Task:Discover Online Marketing
Strategies and their
DifferencesDiscuss 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 (Team Size 3)
Investigate two examples of this list (or suggest another one to me)
• 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? …
Investigate two more examples of this list (or suggest another one to me)
• 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 (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)
• 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
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
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 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
How to get started with Digital Marketing1. Stay Focused on your Objective
• 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. What do you intent to achieve?
• 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
How to get started with Digital Marketing
3. Where are your customers having their conversations?
“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’t get confused, think of Customer Touch Points
instead…
Source: Wave 7
November 2015 Dr. Ute Hillmer
A Generic 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
Figure 1.11
Social Media Marketing Radar
Chaffey, SmartInsights.com, 2011
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 ProcessPost-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
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 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
Figure 1.12 Evolution of web technologiesSource: Adapted from Spivack (2007)
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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