DIGITAL MARKETING
Author: Avi Chand
Company: Avi Chand Marketing
Phone: +91 99990 57404
Email: avi@avichand.com

Marketing Fundamentals
• American Marketing Association (AMA) Definition –
www.marketingpower.com
• Organizational Function, a set of processes for creating,
communicating, and delivering VALUE to customers +
managing customer relationships in ways that benefit the
organization and stakeholders

Marketing 1.0 to 4.0 – Kotler et al.
• 1.0: Product Driven Marketing
• 2.0: Customer-centric Marketing
• 3.0: Human-centric Marketing (Storytelling)
• 4.0: Technology-mediated Human-centric Marketing

Technology is converging
• As technology evolves, different technological systems
evolve towards performing similar tasks
• Digital convergence: Convergence of 4 industries into
one conglomerate: Information Technology,
Telecommunications, Consumer Electronics, and
Entertainment
• Voice, telephony, data, productivity applications, and
video share resources
• Telecommunications Convergence: Data and Voice
• Media Convergence: Interlinking of computing and other
information technologies and media content

Digital Media Spaces
• Internet is the new living room / town hall / central park
• Platforms that offer multiple, converged benefits to users
• Users obtain products, services, information, experiences
(decision making happens in spaces)
• Peer-to-peer behavior, democratized, neutral
• Brands are also netizens; face curated content consumption
• Facebook, Amazon, eBay, Airbnb, Google …

New Trends (in Digital Media Spaces)
• Sharing economy: peer-to-peer access to resources
(Uber, Airbnb, Car sharing, Travel sharing)
• Now Economy
• Omni-channel Integration
• Content Marketing
• Social CRM

Now Economy
• Connected devices will be everywhere, not only in
houses, vehicles, and factories
• User experience is getting unified: “discover -> buy ->
use -> get care” cycle as single touch point across
applications and devices
• The future of computing is at the edge: data crunching
will happen on devices that intersect with the real world,
not in the cloud. Technology advancements and business
need drive this trend
• Service differentiation will be in the content, not the
network. Telco companies see this and make strides in
this direction.

Omni-channel Integration
• Cross-channel Content Strategy
• Used to improve customer experience
• Communication channels are orchestrated to cooperate
rather than work in parallel
• More efficient than single channels or multi-channel
• Used in Finance, Healthcare, Government, Retail, and
Telecommunication Industries

Content Marketing
• Strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent content to
attract and retain a clearly defined audience — and,
ultimately, to drive profitable customer action
• Webinars, Ebooks, Blogs, Social Media, Info-graphics
• Idea is to educate and inform customers rather than hard-
sell them
• (Product, Service, Information, Experience)

Social CRM (Customer Relationship
Management)
• Fusion of social media and customer relationship
management
• A philosophy and a business strategy, supported by a
technology platform, business rules, workflow, processes
and social characteristics
• Designed to engage the customer in a collaborative
conversation in order to provide mutually beneficial value
in a trusted and transparent business environment

Marketing Convergence
• Technology convergence will lead to a convergence between
digital and traditional marketing
• Creation-Communication-Delivery of Value becomes more
personalized and collaborative
• People want high-touch in a digital world (spaces)
• Social media  Increasing personalization in goods and
services as customers “collaborate” with brands
• Big Data  products become more personalized and services
become more personal

Marketing Convergence
• Creation-Communication-Delivery of Value becomes
more personalized and collaborative
• Marketing should adapt to the changing nature of
customer paths (through digital spaces) in the digital
economy (as opposed to AIDA)
• Role of marketers: To guide customers through the
journey from awareness to advocacy, keeping in view
customer paths

Marketing 4.0
• In essence, Marketing 4.0 describes a deepening and a
broadening of human-centric marketing to cover every
aspect of the customer's journey, given the context of
technological and marketing convergence, and the rise of
digital spaces

Dynamics of Digital Media Spaces
• Power shifts to the connected customers
• From Vertical, Exclusive, and Individual to Horizontal,
Inclusive, and Social
• Internet has brought connectivity and transparency and
power shifts

From Vertical Powers to Horizontal Forces
• Companies such as Microsoft and Amazon had to acquire
smaller, yet more innovative companies like Skype and Zappos
• People go to Twitter for breaking news from citizen journalists
as opposed to a large network like CNN
• In the 13 – 18 age group in the United States, YouTube
celebrities are more popular than Hollywood celebrities
• Wall street financiers were shaken by the Occupy Wall Street
movement
• Power lies not with individuals but with social groups and
communities. People discover and share

From Vertical Powers to Horizontal Forces
• Customer communities have become ever more powerful and
vocal; they share stories, good and bad, about brands
• Random conversations about brands are now more credible
than targeted advertising campaigns
• Social circles have become the main source of influence,
overtaking external marketing communications
• Customers tend to follow the lead of their peers when deciding
which brand to choose
• Innovation is horizontal; the market supplies the ideas, and
companies commercialize the ideas.

From Vertical Powers to Horizontal Forces
• Most customers believe more in the f-factor (friends,
families, Facebook fans, Twitter followers) than in
marketing communications
• The trend has spurred the growth of communal rating
systems such as TripAdvisor and Yelp
• Brand should no longer view customers as mere targets
• A relationship between brands and customers should no
longer be vertical but instead it should be horizontal.
Customers should be considered peers

From Exclusive to Inclusive
• The disruptive innovations across business sectors have
brought cheaper and simpler products to the poor,
formerly considered a “non-market.”. Example: Aravind
Eye Care’s Cataract Surgery for $16
• With reverse innovation, new products can be developed
and introduced in the emerging markets before being sold
elsewhere.
• Example: GE's Mac 400, a portable battery-operated
electrocardiogram machine, which was designed to serve
rural villagers in India

From Individual to Social
• Given the connectivity we live in today, the weight of social
conformity is increasing in purchase decisions
• Customers care more and more about the opinions of others.
They also share their opinions and compile massive pools of
reviews
• Together, customers paint their own picture of companies and
brands, which is often very different from the image that
companies and brands intend to project
• Customers are paying more attention to their social circle in
making decisions. They seek advice and reviews, both online
and offline

The Connected Customer
• As opposed to being “isolated”
• Young, urban, middle-class, aspirational, recently moved to big
cities, embracing urbanization, strong mobility
• Specifically true of emerging economies
• In-store purchase decisions are based on online research on
price and quality
• Being digital natives, they can make purchase decisions
anywhere and anytime, involving a wide range of devices
• Despite their internet savvy, they love to experience things
physically

The Connected Customer
• They value high-touch engagement when interacting with
brands
• They are also very social; they communicate with and
trust one another
• They trust their network of friends and family more than
they trust corporations and brands

The Connected Customers
• Don’t see connectivity simply as technology – it is an
attitudinal shift that transforms customers; so is a strategic
shift for marketers
• Google research shows that eight out of ten smartphone
users in the United States do mobile research in-store
• When watching television advertising, more than half of
the TV audience in emerging economies conducts mobile
search

The Connected Customers
• At a strategic level, marketers must pursue more than just
mobile connectivity; they should pursue “experiential
connectivity”
• Internet is used to deliver a superior customer experience
in touchpoints between customers and brands
• The ultimate level is social connectivity, which is about
the strength of connection in communities of customers

The Connected Customer
• Online Interaction vs Offline Interaction: Online will not
replace offline because customers seek high-touch
because connectivity is not merely a technology, it is
human behavior
• Zappos, an Amazon acquisition, is a major online shoe
retailer – they use personal call center interactions to help
customers make purchases
• The characters of the new customers prompt us to realize
that the future of marketing will be a seamless blend of
online and offline experiences across customer paths

The Connected Customers
• Informed Customer vs Distracted Customer:
Connectivity also means customers are distracted by
opinions of others – and not open merely to the marketing
communications of brands
• Thus, marketers need to convert current customers to
advocates
• “Word-of-Mouth” is very important and needs to be
managed as part of marketing communications

Marketing 4.0 – three themes
• An approach that combines online and offline interaction
between companies and customers
• Storytelling moves to digital spaces in a world of connected
customers
• Digital interaction alone is not sufficient. In an increasingly online
world, offline touch represents a strong differentiation
• Marketing 4.0 also blends style with substance. In an
increasingly transparent world, authenticity is the most
valuable asset

Marketing 4.0 – three themes
• Finally, Marketing 4.0 leverages machine-to-machine
connectivity and artificial intelligence to improve marketing
productivity while leveraging human-to-human
connectivity to strengthen customer engagement

Marketing 4.0
• From Segments to Communities
• Naturally formed by customers within the boundaries that
they themselves define
• Will reject a company's attempt to force its way into these
webs of relationship
• STP should be made transparent to customers

Marketing 4.0
• From Brand Positioning and Differentiation to Brand
Clarification of Characters and Codes
• With disruptive technologies, shorter product life cycles,
and rapidly changing trends, a brand must be dynamic
enough to behave in certain ways in certain situations.
• What should remain consistent, however, are the brand
characters and codes.
• The character is the brand's raison d'être, its authentic
reason for being.

Marketing 4.0
• From 4Ps (Product, Price, Place, Promotion) to 4Cs (Co-
creation, Currency, Communal activation, and
Conversation)
• Co-creation: involving customers early in the ideation
stage,
• Dynamic pricing: possible due to big data analytics
• Communal activation: Peer-to-peer production / sharing
• Conversations: Mutually beneficial exchanges

The Customer Path / Journey
Image Source: Hubspot.com

The Marketing Funnel
Image Source: Code95.com

Tools and Technologies
Image Source: http://www.inboundmarketing.com.au
Used with permission

Names and Logos
• All brand names and logos used in the presentation are
property of their respective owners