8/23/2019

MARKETING 4.0: MOVING FROM TRADITIONAL TO DIGITAL

Md. Ridhwanul Haq, Ph.D

Professor, IBA, University of Dhaka
&
Module Coordinator

MARKETING 4.0 IN THE DIGITAL ECONOMY

 Marketing 1.0= Product driven marketing (product, production and selling concept)
 Marketing 2.0= Customer centric marketing (Marketing concept)
 Marketing 3.0= Human centric marketing (Societal marketing concept)
 Marketing 4.0= Combines online and offline interactions between companies and
customer (Mind share, market share, heart share and spirit share)

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FEATURES OF DIGITAL ECO-SYSTEM

Consumer A to I
Transformation Trade-offs Analysis
• Efficiency Enhancer • Time and Money • Analyze Internet • Access details
• Entertainment trade-offs user demographics • Quality and usage
Provider • Time saving and • Gender, race etc statistics
time consuming • Emergence of BDA

Socio economic shift of Business philosophy

 Exclusiveness to Inclusiveness (west to east)

 Individual to Social (I to We/community)
 Vertical to Horizontal (globalization and innovation)

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RISE OF DIGITAL MARKETING IN 4.0 ERA

Top reasons for digital marketing (CSP)

• Brand building and differentiation
• Consumer communication
• Understanding customer satisfaction with product
• Shop-ability or improving the ability of the shopper to find
and select products
• Gathering product or service innovation insights
• B2C/B2B sales relationships
• Services associated with products to drive differentiation

THE PARADOX OF MARKETING TO CONNECTED CUSTOMERS

 Breaking the myth of community

 Paradox No 1: Online interaction VS Offline interaction

 Paradox No 2: Informed customer VS Distracted customer

 Paradox No 3: Negative advocacy VS Positive advocacy

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DIGITAL PARADIGM AND MARKETING

Those who initiate the purchase

procedure
The Virtual World

Harnessing Consumer Intelligence

THE POTENTIAL OF DIGITAL MARKETING

Consumer Data
Impacting Analysis
Marketing
Economics
Digital Content
Marketing Analysis

Value
identification
Value creation Predictive
Value delivery modelling

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THE INFLUENTIAL DIGITAL SUBCULTURES

Youth: Acquiring the mind share

Women: Growing the market share
Netizens: Expanding the heart share

CULTURE AND THE DIGITAL TRANSFORMATION

Characteristic Cultural implication of the characteristic

The Web is a general open network having The Web is viewed by people across culture thus
global accessibility lending itself to vast cultural variability

Interactive nature of the Web The interactive nature of the Web makes it an
ideal medium to create culturally sensitive
dialogue

Web is characterized by hyperlinks and self- Hyperlinks and self-search options rely on
search option consumer motivation to browse, therefore if Web
content is not customized for global consumers
on individual bases the interactive efforts might
be wasted

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CULTURE AND THE WEB

Characteristic Cultural implication of the characteristic

Web technologies can help capture Using customer database and software, country-
customer data that can be used for mass specific profiles can be created and used to make
customization the websites culturally adapted

Media convergence and Broadband Media convergence on the web can be used to
technology make Web an ideal medium to develop country-specific themes, pictures, videos
interact with audio, video, graphic and text and sounds to create localized websites

On the Web, the capacity to hold the visitors The websites that are culturally congruent or
attention ‘the flow state’ is an important closely match the social perceptions of users are
challenge more likely to engage with the users

MARKETING 4.0= COMBINES ONLINE AND OFFLINE

INTERACTIONS BETWEEN COMPANIES AND CUSTOMER

 From segmentation and targeting to customer community confirmation

 From Brand positioning and differentiation to brand clarification of characteristics and
codes
 From selling 4 p’s to commercializing the four c’s
 From customer service processes to collaborative customer care

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E3
More Digital Marketing As Brand Steps Up Competitiveness

LEVEL 3 DIGITAL MARKETING

ENGAGEMENT Connected marketing approach:
• Customer Community Confirmation
• Brand Clarification of Character and Codification
E2 • Connected Marketing Mix (Co-Creation, Currency,
LEVEL 2 Communal Activation, Conversation) & Its
TRADITIONAL MARKETING Commercialization
EXPERIENCE • Collaborative Customer Care
Conventional marketing approach:
• Strategic Segmentation & Targeting
E1 • Brand Positioning and Differentiation
LEVEL 1 • Tactical Marketing Mix (Product, Price,
Place, Promotion) & Selling Approach
ENJOYMENT • Value-Creating Services & Processes

A1 A2 A3 A4 A5
AWARE APPEAL ASK ACT ADVOCATE

More Digital Marketing As Brand Intervenes Further Across Customer Path

Figure: The Interchanging Roles of Traditional and Digital Marketing

MODEL OF INTERNET CONSUMPTION

Type of online consumer behavior Models of Web visits

Task-directed behavior Look ahead/Surfer option model

In task-directed website visits the user The surfers do not have a chance of leaving,
attempts to find out information but carefully balance their time and effort
accomplish a task. against the chance of finding the information
they desire.
A user is actively engaged in judging the
appropriateness and credibility of The look ahead model appears to be the best
information, and balancing additional match for task directed visit.
information on a page against better
alternatives elsewhere.

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MODEL OF INTERNET ACCESS

Type of online consumer behavior Models of Web visits

Experiential online behavior The random surfer model

Experiential surfing is surfing for one’s This is a more natural model for an
own benefit as a time using application. A experimental surfer, not actively engaged in
website is a form of programming channel, the discovery of specific information.
which either offers quality entertainment The random surfer model appears the best
or does not. match for experiential behavior.

FRAMEWORK FOR MARKETING IN THE DIGITAL ECONOMY:

APPLICATION

Traditional economy:AIDA + A= Awareness, Interest, desire and action

+act again
Digital Economy: 5 A’s=Aware, appeal, ask, act and advocate

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Customer Path Pre- A1 A2 A3 A4

AWARE ATTITUDE ACT ACT AGAIN
Connectivity Era

Shift Shift
#1 #2

In the pre-connectivity era, an individual

In the pre-connectivity era, loyalty is
customer determines his/her own attitude
often defined as reflection and
toward a brand; in the connectivity era, the
repurchase; in the connectivity era,
initial appeal of a brand is influenced by the
loyalty is ultimately defined as
“community” surrounding the customer to
willingness to advocate a brand.
determine the final attitude

Customer Path in A1 A2 A3 A4 A5
AWARE APPEAL ASK ACT ADVOCATE
Connectivity Era

With it comes to understanding brands, customers now actively

connect with one another, building ask- and- advocate
relationship; depending on the bias during the conversation, the
connection either strengthens or weakens the brand appeal
Shift
#3

Figure: The Shifting Customer Path in a Connected World

PAR BAR
(Purchase Action Ratio) (Brand Advocacy Ratio)
Purchase Action Ratio (PAR) measures how good Brand Advocacy Ratio (BAR) measures how good
companies “convert” people who are aware of companies “convert” people who are aware of
them into purchase actions. them into loyal advocates.
Calculated as the number of percentage of Calculated as the number or percentage of people in the
people in the market who purchase the brand market who spontaneously recommend the brand to others

Calculated as the number or percentage of people in the market who

spontaneously recall the brand when asked about a particular
category.
Example:
From a population of 100 people in the market, Brand A is spontaneously recalled by 90 percent people and out of that 90, only
18 people purchase the brand. The PAR for Brand A is 18/90 or 0.2 Only 9 people advocate the brand. The BAR for Brand A is 9/90
or 0.1.

Figure: New Productivity Metrics (PAR and BAR)

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BAR = X X X

LOYALTY = X X X

• Repositioning • Community • Channel • Loyalty Program

• Marketing Marketing Management • Customer Care
Communications • Content Marketing • Sales Force
Management

Possible Company Intervention to Increase Conversion Rates (crisis of opinion

leader)

E-METRICS USED TO ASSESS DIGITAL PLATFORM INTENT

Digital platform intent Parameters to be measured

Increase online sales • Sales generated per visitor

- In one individual visit
- Through online sale
- Through telephone contact
- Through cash on delivery options
• Total number of items per single order placed online
• Online consumer conversion rates
• Daily and weekly sales trend and patterns
• Consumer website entry and exit pages
• No. of sites linking to the website
• Source of online visit

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E-METRICS USED TO ASSESS WEBSITE INTENT

Digital platform intent Parameters to be measured

Creation of re-purchase intent • No. of visits to complaints page

• Length of the visit
• Online registration
• Opt-in for company mails
• Joining company online forums and blogs
• Becoming consumer evangelists (online
recommendations)

E-METRICS USED TO ASSESS WEBSITE INTENT

Digital platform intent Parameters to be measured
Identification of potential • No. of organizational online forums joined
customers • Responses to e-mails
• Responses to company mailers
• Responses to organizational campaigns
• No. of opt-ins (newsletter downloads, e-mail opt ins,
promotional schemes)
• Consumer evangelists on online forums
• Degree of positivity of online sentiment displayed

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INDUSTRY ARCHETYPES AND BEST PRACTICES:

TO UNDERSTAND MARKET RESULTS WE NEED TO USE THE CONCEPT OF
CUSTOMER PATH

Pattern 1: Door knob (Mostly observed in case of fmcg)

Pattern 2: Gold fish (B2B)
Pattern 3: Trumpet (Luxury items)
Pattern 4:Funnel (Planned purchase like medicine)

DOOR KNOB GOLDFISH TRUMPET FUNNEL

A1 A2 A3 A4 A5 A1 A2 A3 A4 A5 A1 A2 A3 A4 A5 A1 A2 A3 A4 A5

Customer Behavior
• Have prior expectation and • Lengthy and thorough • Highly involved in • Purchase is mostly
preference evaluation before buying purchase decision planned
• Have low attachment • Involve multiple • Have confidence in • Trust real experience,
toward brand stakeholders brand quality not claims

Industry Characteristics
• Aggressive branding and • Commoditized offerings • Reputable image • Competing brands can
marketing • Similar positioning among from quality easily be compared
communications competing brands association • Product is paired with
• Many competing brands • Strong influence from strong customer
word of mouth experience

Figure 7.1 Mapping Industry Archetypes

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ONLINE BEHAVIOR IN B2C CONTEXT

Explicit behavior
(data provided
by the user)

Consumer online
behavior
Implied behavior
(data derived
from
observation)

ONLINE BEHAVIOR IN A B2B CONTEXT

Those who initiate the purchase procedure

Those who actually use the product

Decision-making Those who have the authority to select

unit in B2B context the product

Those who influence the buying decision

Those who have the authority to make the

purchase

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TACTICAL MARKETING APPLICATIONS IN THE DIGITAL ECONOMY

1) Human-centric Marketing for Brand attraction

2) Content marketing for brand Curiosity
3) Omnichannel Marketing for Brand commitment
4) Engagement marketing for Brand Affinity

We require patience for social listening, ethnography/ netnography and empathic research

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INDUSTRY VERTICALS AND COMPANIES

Industry vertical Companies
Automobile Ford, Chevrolet, Audi, Honda, Mercedes, Fiat, Hyundai, Toyota, BMW,
Tata
Banking SBI, ICICI, SCB India, HDFC, OBC, ING VYSYA, Bank of Baroda, ICICI

IT Wipro, Dell, Cisco, Accenture, Apple, Reliance, Tata Steel, TCS, Infosys,
L&T
Education DPS: R.K. Puram (Delhi), Ryan International School (Noida), Kothari
National School, Mayoor International School (Noida), Jaypee Institute of
Informational Technology (Noida), IIM (Ahmadabad), IIT (Delhi), IMT
(Ghaziabad), IIFT (Delhi)
FMCG HUL, ITC Ltd, Nestle, Dabur, Asian Paints, P&G, Cadbury, Amul, Britannia,
Marico, Telenor, R n B

YES VS WOW FACTORS FOR DIGITAL MARKETING 4.0

Class participation for cases

ThankYou

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