Consumer decision making on digital
Upcoming SlideShare
Loading in...5
×
 

Consumer decision making on digital

on

  • 545 views

How consumer behaviour is getting disrupted by the digital forces. Presented in a Guest Lecture at IIM Bangalore on 27th July, 2012.

How consumer behaviour is getting disrupted by the digital forces. Presented in a Guest Lecture at IIM Bangalore on 27th July, 2012.

Statistics

Views

Total Views
545
Slideshare-icon Views on SlideShare
545
Embed Views
0

Actions

Likes
2
Downloads
10
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Media platforms are multiplying; all vying for consumers’ attention
  • Marketers have been taught to “push” marketing toward consumers at each stage of the funnel process to influence their behavior. But our qualitative and quantitative research in the automobile, skin care, insurance, consumer electronics, and mobile-telecom industries shows that something quite different now occurs.Actually, the decision-making process is a more circular journey, with four primary phases representing potential battlegrounds where marketers can win or lose: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and postpurchase, when consumers experience them
  • Nielsen Research produced various data that showed that incorporating social / Earned actions into Paid Media placements increased their effectiveness on Facebook - Earned helps Paid to work harder- Conversation can amplify the effects of offline Paid Media advertising too and this can change the approach to Paid Media strategy. Traditional frequency of three thinking was based around Paid Media being used to drive all impacts, but the scaling of the conversation means that the second or third impression can now be delivered through the sharing actions of the so-called 'People's Network.' - The Conversation can also be a great source of insight, surfacing trends that can be harnessed, providing focus group type insight, facilitating customer service or providing data for measurement - with everything then fuelling other parts of the Paid Owned Earned ecosystem.http://www.nickburcher.com/2011/06/paid-owned-earned-how-it-works-image.html

Consumer decision making on digital Consumer decision making on digital Presentation Transcript

  • Consumer Decision Making in the digital realm IIM Bangalore 27th July, 2012www.twitter.com/akshatk
  • Needs & Wantswww.twitter.com/akshatk
  • Needs & Wantswww.twitter.com/akshatk
  • Gone in 60 secondswww.twitter.com/akshatk Slide 4
  • Consumers are making informed decisionswww.twitter.com/akshatk
  • Introduction • Media outposts have multiplied and they don various roles sometimes interchangeable • Brands have evolved. They are embracing new media. They want to be present at every touch point consumer has access to. • Consumers are smarter and more informed. They rely on multiple information sources before they make a purchase decision. And hence brands and marketers are increasingly putting consumers at the heart of everything they dowww.twitter.com/akshatk
  • 3 key themes:1. A business problem is a behavioural change in disguisewww.twitter.com/akshatk
  • At the heart of every business problem today is anopportunity to change consumer behaviour- Even in those areas we previously struggled to impactwww.twitter.com/akshatk
  • Start with a clear, simple, granular problem(N.B. these aren’t easy to get to) THE PROBLEM -We need 1m users to buy 1 more pack a year each -Rate of sale is sky high but our distribution is a barrier to growthwww.twitter.com/akshatk
  • Then identify the behaviour you needto change to make that happen THE PROBLEM THE BEHAVIOURAL CHANGE -We need to create one -We need 1m users to buy 1 more additional occasion a year for pack a year these users -Rate of sale is sky high but our -We need our fans to become our distribution is a barrier to distribution channel growthwww.twitter.com/akshatk
  • Move from “nice” sharing to “sharing thatbreaks”www.twitter.com/akshatk
  • 3 key themes:1. A business problem is a behavioural change in disguise2. Think about network insights, not (only) consumer insightswww.twitter.com/akshatk
  • www.twitter.com/akshatk
  • Thinking about network insights ensures weunderstand why our target might participatewith our platform www.twitter.com/akshatk
  • And it ensures we know how to design experiencesto maximise the participation we need Source: Luke Wroblewski, The Impact of Social Modelswww.twitter.com/akshatk
  • 3 key themes:1. A business problem is a behavioural change in disguise2. Think about network insights, not (only) consumer insights3. From “the single thing we want to say” to “the single thing we’re going to make or do”www.twitter.com/akshatk
  • The heart of every marketingcampaign/message/ initiative/…:What is the single thing we want to say?www.twitter.com/akshatk
  • But we’ve established….Participation disrupts business modelsConsumers ability to participate has the power to impact ourbusinesses in more profound ways than ever beforeThe solution to a much more diverse range of business problemslies in changes to consumer behaviourIf we want to change behaviour, we’re probably not going to betalking at people……www.twitter.com/akshatk
  • www.twitter.com/akshatk
  • What are we going to make or do that will enable thebehaviour we need to see?www.twitter.com/akshatk
  • Hence1. A business problem is a What do we need people behavioural change in disguise to do?2. Think about network insights, not Why would they do it? (only) consumer insights -what are their network motivations?3. From “the single thing we want to What are we going to say” to “the single thing we’re make or do that will going to make or do” enable them to do it ? www.twitter.com/akshatk
  • • GOAL OF BUSINESS • Sell stuff often • GOAL OF MARKETING • Influence consumers to buy stuff oftenwww.twitter.com/akshatk
  • What aids consumer decision making?• CLOUT – The marketing that has the most clout is the marketing that already has your consumer’s ears – Most trusted form of marketing – word from friends and family• RELEVANCE – Break the clutter; too much noise – Map the consumer decision journey, align messaging with the journey, sell an outcome or a lifestyle , not a product
  • What aids consumer decision making?• EASY – Invest in findability, reward loyalty – Use CRM – Make it easy for the consumer to ‘like’ you• DIFFERENT – Consumers are looking for a story to tell – Create a unique/key selling point – Personalisation – Build in virality – Package the brand experience for consumers to understand and share
  • The perception gap: Needs & Wantswww.twitter.com/akshatk
  • The evolving ecosystemThe key to this new ecosystem is the arrows between each bucket though. Paid drives Ownedwhich can drive Earned, but things are more complicated than this.- Owned Media presence (for example a YouTube video) can aid visibility on Search Engines andcan also be used to drive back to the main site (for example Alexa currently shows that 44.64%of visitors to Evian.com come from YouTube.)- Conversation can also produce activity that aids SEO (through creating an increase in bothSearch results and links) with this helping Paid Search ads to work harder.www.twitter.com/akshatk
  • Brands are Publishers - Large well-known brands are beginning to realize that the media they own (the product itself, how it’s sold and distributed, etc.) are more powerful than the media they buy. Johnson & Johnson’s Baby Center, a portal P&G launched a new platform called “Man for new and expecting mothers, is said to of the House” which revolves around male be one of the most effective marketing grooming and men’s lifestyle besides initiatives J&J has ever undertaken. working as a plug for Old Spice and Gillette - Owned media are not only more credible and effective than paid media, but they actually sometimes have better reach and frequency.www.twitter.com/akshatk
  • Thank You• imadreamer@gmail.com• www.twitter.com/akshatk• in.linkedin.com/in/akshatkumar• www.slideshare.net/inkgenie