3/15/2020

24104 INTRODUCTION TO DIGITAL CHANNELS

Lecture 2, AUT 2020

BUSINESS.UTS.EDU.AU

This lecture…
1. Study latest trends
2. Evolution of digital channels
3. What does the presence of digital channel mean for marketers?

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Useful Terminology of Digital Marketing

techniques

Useful Terminology of Digital Marketing

techniques

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Digital Marketing Trends- A time series perspective

DM Trends to act on in 2018
DM Trends to act on in 2017

Digital Marketing Trends- A time series perspective

DM Trends to act on in 2020
DM Trends to act on in 2019

In 2020, AI technology, video, voice search, and interactive

content will be among the most prominent trends. This is no
time for a business to stand still, as the younger demographics
and more tech-savvy consumers of today want brands to
connect with them in new and exciting ways that make the
customer journey easier and more enjoyable.

Source: DigitalMarketing Institute

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Digital Marketing Trends in 2020

Difference between Omni channel and

Multi channel Retailing
Both multi- and omnichannel involve selling across multiple physical and digital channels, the
key difference is how the customer experience is joined up across those channels.
A traditional multichannel retailer may have a website and physical stores. These two channels
are generally very siloed, and have very little interaction with one another, and hence customer
experience of shopping in these channels is very fragmented.
Omnichannel retailing, on the other hand, joins touchpoints together so that whatever journey
the customer chooses to take, the experience is consistent and unified.

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Difference between Omni channel and

Multi channel Retailing
Both multi- and omnichannel involve selling across multiple physical and digital channels, the
key difference is how the customer experience is joined up across those channels.

Source:www.fitsmallbusiness.com

Digital Channels

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Marketing’s past - recap

• “spray and pray” mass marketing
• Created and “sprayed” messages
• “Prayed” their customers would react

• Consumer markets – going to stores or websites and

responding to promotions or merchandising

Designing a Marketing Organization for the Digital Age, HBR, 2016

BUSINESS.UTS.EDU.AU

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Evolution of Digital Channels

Some downsides of shopping
Information on the Internet:
Web/Online Search
Channel Choice Overload
Purchase
Product uncertainty-Lemons!

Bricks and mortar

channel

Reading: A Thematic Exploration of Digital, Social Media, and Mobile Marketing: Research
Evolution from 2000 to 2015 and an Agenda for Future Inquiry, Journal of Marketing 2016

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Evolution of Digital Channels

Internet as Search and Decision
Support Tool
Web/Online Channel ▪ Recommendation Agents
▪ Comparison Matrices

Consequence
• Higher quality alternatives
Social Media Search Engine Email • Low search costs
• Better Choice
• Price competition
• Non-Price based outcome-
customised emails
Market Intelligence Online Advertising

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Evolution of Digital Channels

Mobile Internet Web/Online
Benefits of Internet-
Social media
• Information
• Value
• Online WOM as
individual
expression
Social Media Search Engine Email

Product Online Networks-Social hubs

Reviews ratings Influencers

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Discussion
How can retailers leverage online or offline channels or both to successfully
market their products? Explain in context to changing consumer shopping
behavior.
[Hint: Changing channel preferences and behavioral differences of consumers]

Note: Refer to reading “Online or in store? Exploring the shift in shopping

behavior”

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What does changing consumer

behaviour mean for today’s marketers?

Note: Refer to the HBR reading “Designing a marketing organization for the
digital age” and your opinions to answer the above.

BUSINESS.UTS.EDU.AU

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What does changing consumer

behaviour mean for today’s marketers?

▪ Marketers face Non-Linear consumer buying process implying a shift

from push to pull marketing
▪ Marketers need to be where customers are searching and sharing
i.e. digital communication replaces ads and revenues as a primary
source of customer information.
▪ Organizations need to evolve to develop more fluid structures.
▪ User/Customer experience is important!

Note: Refer to the HBR reading “Designing a marketing organization for the
digital age” and your opinions to answer the above.

BUSINESS.UTS.EDU.AU

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Today’s consumer
❖Always-on digitally connected world
❖Customer buying process isn’t linear
• Shift from awareness to purchase
❖Customer journey - increasingly self-directed & made up of erratic
micro-moments
• Shift from push to pull marketing i.e.
• In push marketing, the idea is to promote products and persuade
consumers to buy products. Example: sales displays at your
grocery store. In contrast, pull marketing attempts to establish a
loyal following and draw consumers to the products. Example:
Airline frequent flyer programs; loyalty card programs; social
media promotions
Designing a Marketing Organization for the Digital
Age, HBR, 2016

BUSINESS.UTS.EDU.AU

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Recap
1. Current trends indicate an increased emphasis on social media marketing, content
generation and video advertising.
2. Online brand management will be crucial to brands’ success.
3. Importance of marketing analytics using big data to draw insights and measure the
effectiveness of digital marketing efforts is becoming increasingly important.
4. Evolution from offline to online/traditional web channel and then onto digital channel
incorporating mobile as a new channel.
5. The implications of digital marketspace and changing consumer behavior for marketers.

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Next week
Lecture: Social Media Marketing Tutorial: Types of data and data metrics
To Do: Go through the readings!

BUSINESS.UTS.EDU.AU

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