DIGITAL MARKETING

Integrating Online and Offline Experience

By: Yosanova Savitry

Saturday, 14 September 2019

H O W D O YO U M A N A G E M A R K E T I N G I N D I G I TA L W O R L D ?
THE FUTURE OF LEARNING: OMNI-LEARNING
Sankaranarayanan Padmanabhan
Executive Chairman, Tata Business
Excellence Group
Samantha Hammock
Chief Learning Officer, American
Express
Nick van Dam
Retired Global Chief Learning Officer,
McKinsey & Co
Learning is personalized
The participants can pursue the skills development program or
practice that is right for them, at their own pace, using their optimally
suited media
Learning is contextualized
Most participants will get the most value if they get opportunity to
implement the knowledge, skill, and attitude in directly relevant to
their actual environment
Learning is socialized
Learning happens best when participants collaborate and talk one
another. The knowledge of “know-why”, “know-what”, and “know-
how” should be in social nature
Learning is tracked
In order to continuously grow in the learning journey, participants
should be able to transparently see their progress and plan the next
action to get optimum output of learning
HOW

WHAT

WHY
W H AT I S G O I N G O N W I T H I N D O N E S I A N C O N S U M E R S ?
Changing Demographics of Global Consumer Market in 2020
Young, Urban ‘Middle Class’ with Strong Mobility and Connectivity
Higher Spending Power Increased Mobility Improved Connectivity

World pop. Vehicle # of Subs.

ownership/ 100 14 18 5.3 9.7
(billion) 7 7.8 (billion)
pop. incl. M2M
28 127
1.2 4.8
20 40%
3.6
33X

3.8

2010 2020E 2010 2020E 2010 2020E

Population of ‘middle class’ and above (Bn) Annual Distance Driven (Trillion vehicle-km) Annual Mobile Traffic (Exabyte)
Household income > USD 5K p.a. Road usage forecast Incl. uplink and downlink for voice and data

Senior-Dominated G7 and Youth-Dominated BRIC Largely Urbanized World

G7 2020E BRIC 100%

10% of world pop. 41% of world pop.
75% 81% G7
80%
Older Age Group

60% 52% BRIC

40% 38%

20%

0%
10% 5% 0% 5% 10% 2000 2005 2010 2015 2020
Population by Age Group (5-year interval) Percentage of Urban Population
G7 and BRIC Countries G7 and BRIC Countries

Source: Euromonitor, Bain & Company, OECD, UMTS Forum, IDATE, Booz & Company, United Nations, MarkPlus Analysis.
What’s Trending in Consumer Market (1)
Customer Attitude/Lifestyle and Facilitating Technology Trends (2012-2020)

Customer Attitudes/Lifestyles Facilitating Technologies

1 Multiple Aspiration & Poverty Lines A Social Media Platform

▪ Definition: Consumer can ‘feel rich’ or ‘feel ▪ Shift from CNN breaking news to Twitter
poor’ depending on self-defined aspiration trending topic
& poverty line benchmarks ▪ Shift from Hollywood box office to
▪ Case: auto industry in India YouTube ‘most viewed’

2 ‘F-Factor’ B Communal Rating System

Definition: Fans/Followers, Friends, and Examples: Yelp, Glassdoors, honestly.com,
Family driving ‘rateocracy’ – rating democracy Facebook’s ‘Like’

3 Spontaneous Discovery C Sensor Technologies

▪ 79% of smartphone users in the US do ▪ Basic: UPC Barcodes/QR Codes
mobile research in-store ▪ Advanced: Location-Based Services,
▪ 96% Indonesians influenced by TVC; 52% do NFC, Digital Wallet, Augmented
mobile search while watching TV Reality

Source: Sangeeta Gupta & Shobha Prasad (ESOMAR), trendwatching.com, TNS, Google-IPSOS OTX, Robert Moran (wfs.org), Booz & Company, MarkPlus Analysis.
What’s Trending in Consumer Market (2)
Customer Attitude/Lifestyle and Facilitating Technology Trends (2012-2020)

Customer Attitudes/Lifestyles Facilitating Technologies

4 High Demand for Customization D Customer Analytics

▪ Young urbanites are highly ▪ Behavior tracking (loyalty program,
expressive with great desire to credit card, apps, web, mobile, video
stand out cam/motion detector)
▪ Customer profiling and prediction

5 E ‘Human’ Interface
‘Offline’ Experience Still Matters
▪ Touch and voice commands
▪ Brick-and-mortar shopping is ▪ Smart devices e.g. augmented reality
about status glass
▪ High tech drives the desire for ▪ Telepresence
human touch
▪ Urban lifestyle equals ‘offline’
fashion, entertainment, and
socialization

Source: Sangeeta Gupta & Shobha Prasad (ESOMAR), trendwatching.com, TNS, Google-IPSOS OTX, Robert Moran (wfs.org), Booz & Company, MarkPlus Analysis.
Envisioning the B2C Model in 2020
Highly Integrated Online and Offline Experiences Across Customer Journey

Awareness Search Evaluation Purchase

Marketing QR Code Digital

Comm. Rating Promo Wallet
Check

Customer
Analytics

Past Experience
Hi-Tech Hi-
Touch
Experience

Price
The Check
F-Factor ‘Check-In’ Push ‘Mass
Offer Customization’
Source: MarkPlus Analysis.
M E A N W H I L E , M O S T CO M PA N I E S A R E S T I L L T R A P P E D

W I T H M A R K E T I N G CO M M U N I C AT I O N P R O B L E M S
RonCar
L'Oréal Shampoo Campaign

HIGHER-END
CELEBRITY AS
SPOKESPERSON

LOWER-END
BRANDING
INITIATIVES

Source: Mohan Sahwney – Tech Marketing S2010 Session 18 – Integrated Marketing Communication
 Diminishing Marginal Results of Media Spending
100

90 Digital
Marketing
80

70
% Purchase intent

60
Diminishing
50 returns
40

30

20

10

0
0 1 2 3 4 5 6 7 8 9 10

Frequency: Number of OTS* ad exposures

*OTS = Opportunity to see advertisement based on GRP levels

Source: Interactive Advertising Bureau Cross-Media Optimization Study

Common Problems with Marketing
Communication
• We think of marketing communications in campaign and
channel terms, not customer terms
• We reach the same audience through multiple touch points
that may be redundant and overlapping
• We reach the same audience with multiple messages that
may be inconsistent and potentially conflicting
• We don’t have logical “next calls to actions” that connect
different media channels in the customer journey
• We cannot optimize communications spending across
communications channels with a common ROI metric

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

HOW

WHAT

WHY
A N A N A LO G Y : “ S U R R O U N D S O U N D M A R K E T I N G ”
 Integrating Legacy & New Wave Marketing
More New Wave Marketing As Brand Steps Up Competitiveness

E3
NEW WAVE MARKETING
LEVEL 3
ENGAGEMENT Connected marketing approach:
• Confirmation to Customer Community
• Clarification of Brand Character and
Codification
E2 • Connected Marketing Mix (Co-Creation,
Currency, Communal Activation,
LEVEL 2
Conversation) & its Commercialization
EXPERIENCE • Customer Care and Collaboration
LEGACY MARKETING

Conventional marketing approach:

E1
• Strategic Segmentation & Targeting
• Brand Positioning & Differentiation
LEVEL 1 • Tactical Marketing Mix (Product, Price,
ENJOYMENT Place, Promotion) & Selling Approach
• Value-Creating Services & Processes

A1 A2 A3 A4 A5
AWARE APPEAL ASK ACT ADVOCATE

More New Wave Marketing As Brand Intervenes Further Across Customer Path
Source: MarkPlus Analysis
IKEA: Integrating Offline & Online Marketing

Source: MarkPlus Analysis

Z A LO R A : C R E AT I N G O F F L I N E S H O P
LINE CORP: LAUNCHED LINE T V
WELCOME TO MAERSK LINE SOCIAL MEDIA!
The Realities of Marketing Today

• Customers enact your brands in social

conversations

• Customers expect to engage with you in the

marketing process

• Marketers will need to cede some control over

the medium and the message

• Authenticity, openness and transparency are

the new watch words

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

Focus on your customer journey …

Engaging Customers to
Build Brand

Collaborating with
customers to co-create

Source: MarkPlus Analysis

HOW

WHAT

WHY
Engage & collaborate with your customers

From … To …

Exposure Engagement
Marketing Marketing

Command and Connect and

Control Collaborate

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

Engagement Marketing

From … To …

Exposure Engagement
Marketing Marketing

Creating mutually beneficial relationships between

brands and customers by providing customers with
information and services that help them to achieve their
goals and pursue their interests.

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

Engagement Marketing
From ... To ...

Interruption Facilitation

Reach Relevance

Mind Heart

Episodic Enduring

Passive Active

Selling Telling
Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World
Rules:

• Engagement should offer relevant value

• Its not about you. Its about customers
• Don’t drive sales, influence them
• Engagement is an ongoing
conversation
• What brands do offline echoes online
Creating Engaging Content

INFORMATIONAL ASPIRATIONAL VALUE ECONOMIC VALUE

VALUE Getting them to think Economic incentives for
Education, knowledge differently engagement
and assistance in
problem solving

SOCIAL VALUE ENTERTAINMENT

Content that people VALUE
will want to share with Fun and enjoyable
their friends to enhance things to do
their social capital

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

I N F O R M AT I O N A L VA LU E
Aspirational Value
Economic Value
Social Value
Entertainment Value
Collaborative Marketing

From … To …

Command & Connect &

Control Collaborate

Leveraging the creativity and expertise of customers to define,

design and deliver offerings by giving them social and
economic rewards in exchange for their contributions.

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

Collaborative Marketing

Do it for me Do it myself Do it with me

Source: MarkPlus Analysis

Collaborative Marketing: A 360o view

Collaborative
Ideation

Collaborative Collaborative
Support Design

Collaborative Collaborative
Communication Testing

Collaborative
Selling

Source: Mohan Sahwney – Connect & Engage – Marketing in Digital World

C O L L A B O R AT I V E I D E AT I O N
C O L L A B O R AT I V E D E S I G N
C O L L A B O R AT I V E T E S T I N G
Collaborative Selling
Collaborative Communication
C O L L A B O R AT I V E S U P P O RT
“Internet Marketing is like digging a gold
mine. 97% of the people focus on the 99%
dirt and dust and keep complaining. 3% of
the people focus on the 1% gold and keep
collecting.”
- Sanja Budin