The Digital Landscape

Dr. Ajitabh Dash

THE DIGITAL LANDSCAPE
Foundational Principles of
digital marketing
The P-O-E-M Framework
Buying Terminology
• CPL
• CPC
• CPM
• CPA
How the 4 P’s Have Been Transformed by
Digital
The nature of what a brand can do for
Product consumers has been transformed by
digital technology

Price transparency is transformational in

Price
some categories

E-, M-, and S-commerce are

Placement
revolutionizing many categories

Not just where brands promote has

Promotion
changed, but how they do it
Impact on Product –Connection
with the Customer
• Creating products which include digitally delivered services to bolster value
propositions to consumers
• Personalizing products and enabling mass customization cheaply
• Developing products for niche audiences by using the long tail distribution
opportunities
• Involving consumers in product development and design
Impact on Product: VW.com

• Driving sales of high margin and unique items by allowing a user to design
their own vw models
Impact on Product: Nike Training Club

• Providing a service as
part of the product
proposition
• Helping women to
maintain fitness
• Huge investment in
content and distribution
• Following on Nike
Google maps mashups
• Great data acquisition
• Long-term relationships
Leveraging the “Long Tail”

• The New York Times bestseller that introduced the business world to a future
that’s already here, by Chris Anderson, former Editor-in-Chief of Wired
magazine
 Awareness: Smartphones

Courtesy: Google and Google logo are registered trademarks of Google Inc., used with permission.
 Interest: 4G Smartphones

Courtesy: Google and Google logo are registered trademarks of Google Inc., used with permission.
 Desire: Motorola 4G Smartphone

Courtesy: Google and Google logo are registered trademarks of Google Inc., used with permission.
 Action: Motorola G Plus 4G Smartphone

Courtesy: Google and Google logo are registered trademarks of Google Inc., used with permission.
Impact on Price
• Traditional business: information “asymmetry”
• Business has access to most information
• Middlemen everywhere – travel agents, real estate agents, car salesmen
• Consumer had to work hard to get it
• Digital business: information “symmetry”
• Consumers can easily get access to information to help them make decisions
With New Pricing Transparency
• The Internet brings a new transparency to pricing
Impact on Price: Travel & Hospitality
Impact on Price: Insurance
Impact on Price: RetailMeNot

• Coupons and codes everywhere

 Price Comparison and the Strength of Brands

Google shopping,
Shopzilla
…and Mobile Makes it Worse

Mobile tools for comparing products make it

possible to reach consumers in the very aisles as
they shop
Impact on Placement
• New sales channels – not just websites
• Mobile – tablets and smartphones
• Social – Facebook stores and social commerce
• E-commerce growing at a healthy rate
• M-commerce (e-commerce on mobile devices) grabbing more share each passing quarter
Impact on Placement

The continual merging of e-commerce research and transactions

New Models are Possible
Disintermediation is a key factor in many markets that
have exposure to digital

Old Model New Models

Brand Brand Brand

Agent Aggregator

Consumer Consumer Consumer

Impact on Promotion
• Huge new marketing channel
• Advertising, online PR, customer service
• Explosion of media choices
• Highly targetable and optimizable
Recent trends
Emergence of Voice Search
Emergence of Artificial Intelligence
SOSTAC Model
 5S of Digital marketing

Sell: grow sales Serve: add Speak: get Save: save costs Sizzle: extend
value closer to the brand online
customers

Widen Provide extra Conduct two- Offer a new

distribution customer way dialogue; Reduce costs by value
channels to benefits; or enables performing proposition
support product research; communications online; improve
customer development monitoring of , sales and brand
preference or information social; use of service online awareness;
service new through key influencers reach;
markets; offer customer input favourability
more products
online; or lower
prices online
Sell online;
drive offline
sales;
SOSTAC Planning framework
SOSTAC is:
● Situation analysis – where are we now?
● Objectives – where do we want to be?
● Strategy – how do we get there?
● Tactics – which tactical tools do we use to implement strategy?
● Actions – which action plans are required to implement strategy?
● Control – how do we manage the strategy process?