The Course: WHAT
The Course - WHAT
Deﬁne the Activities Mix Veriﬁca
How to brief a supplier Deﬁne the Goals
The Web Site
How promotion and ADV change Social networks
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The Course: Digital Ecosystem
The Course: Digital Ecosystem
ABOUT THE DIGITAL ECOSYSTEM
As in the natural world, there are several ecosystems which have some species
in common, others which are similar having followed a process of adaptation
to local conditions, and others which are endogenous.
A "digital ecosystem" has been developing around us, going far beyond the desktop and quickly
spreading through every type of device available.
"An ecosystem is a system whose members beneﬁt from each other's participation via
symbiotic relationships (positive sum relationships)." as for the digital ecosystem, it is a
"digital environment" populated by "digital species" which can be software components,
applications, online services, information, business models, etc.
As in the natural world, there are several ecosystems which have some species in common, others
which are similar having followed a process of adaptation to local conditions, and others which
are endogenous. Now in the digital ecosystem, you will be able to see the new digital species
that are emerging and which will help cleanse the ecosystem, bringing back the power to
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The Course: Digital ecosystem (online)
The Course - WHAT
- 150 -
The Course: Digital ecosystem
The Course - WHAT
- 151 -
Digital Ecosystems Deﬁnitions
The Course - WHAT
Digital Business Ecosystems (DBEs) deﬁned
The DBE website deﬁnes a DBE as the enabling technologies and the paradigms supporting Regional Growth and Innovation in
Business Ecosystems mainly composed by SMEs.
It goes on to elaborate that….
A natural life ecosystem is deﬁned as a biological community of interacting organisms plus their physical environment. In the same
way, a business ecosystem is "the network of buyers, suppliers and makers of related products or services” plus the socio-economic
environment, including the institutional and regulatory framework.
A digital ecosystem is a self-organising digital infrastructure aimed at creating a digital environment for networked organisations
that supports the cooperation, the knowledge sharing, the development of open and adaptive technologies and evolutionary business
The digital ecosystem approach transposes the concepts to the digital world, reproducing the desiderable mechanisms of natural
ecosystems. As several interacting natural ecosystems exist, several digital ecosystems exists due to differentiation and the
development of endemic product and services tailored to speciﬁc local needs.
A digital ecosystem results from the combination of :
1) the free digital ecosystem knowledge- and service-oriented infrastructure, as a public common resource ;
2) the digital components, services and the formalised knowledge which "populate" such infrastructure .
A digital ecosystem means to be the ICT-enabling technology for business ecosystems based on the dynamic and amorphous
interaction among a multiplicity of small organisations.
Business Ecosystem + Digital Ecosystem = ( Innovation Ecosystems or Digital Business Ecosystem )
A Digital Business Ecosytem or Innovation Ecosystem results from the structurally coupled and co-evolving digital ecosystem and
business ecosystem. A network of digital ecosystems, will offer opportunities of participation in the global economy to SMEs and to
less developed or remote areas. These new forms of dynamic business interactions and global co-operation among organisations and
business communities, enabled by digital ecosystem technologies, are deemed to foster local economic growth. This will preserve
local knowledge, culture and identity and contribute to overcome the digital divide.
Download the DBE book (240 pages)
Check the Table of Contents
Download Full Book (low res 5.56MB)
Download Full Book (high res 85MB)
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The Cluetrain Manifesto - 1999
A powerful global conversation has begun. Through
the Internet, people are discovering and inventing
new ways to share relevant knowledge with blinding
speed. As a direct result, markets are getting smarter
—and getting smarter faster than most companies.
These markets are conversations. Their members communicate in
language that is natural, open, honest, direct, funny and often shocking.
Whether explaining or complaining, joking or serious, the human voice is
unmistakably genuine. It can't be faked.
Most corporations, on the other hand,
only know how to talk in the soothing,
humorless monotone of the mission
statement, marketing brochure, and
signal. Same old tone, same old lies.
the cluetrain manifesto No wonder networked markets have
no respect for companies unable or
unwilling to speak as they do.
But learning to speak in a human
voice is not some trick, nor will
corporations convince us they are
human with lip service about "listening
to customers." They will only sound
human when they empower real
human beings to speak on their
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In the opening talk of the ﬁrst Web 2.0
conference (October 2004), O'Reilly and
John Battelle summarized what they saw as
the themes of Web 2.0. They argued that
the web had become a platform, with
software above the level of a single device,
leveraging the power of the "Long Tail", and
with data as a driving force. According to
O'Reilly and Battelle, an architecture of
participation where users can contribute
website content creates network effects.
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Five Mutable Laws
The Five Mutable Laws of Web Marketing, by Dr. Ralph F. Wilson
1. The Law of the Dead End Street
a. The ﬁrst law goes like this: Setting up a website is like building a
storefront on a dead-end street. If you want any shoppers, you
must give them a reason to come.
2. The Law of Giving and Selling
a. An important element of Web culture is "free stuff." The Law of
Giving and Selling says: Attract visitors to your site by giving
away something free, and then try to sell something additional to
those who visit.
3. The Law of Trust
a. Assuming your products or services are priced competitively
and are of good quality, your most signiﬁcant sales barrier is
trust. Trust is the essential lubricant of Web business; without
trust, business grinds to a halt.
4. The Law of Pull and Push
a. The Fourth Mutable Law of Web marketing is: Pull people to
The Five Mutable Laws of Web Marketing your site by your attractive content, then push quality information
to them regularly via e-mail.
5. The Law of the Niche
a. The Law of the Niche is last but not least. Let me state it this
way: Big businesses like Amazon.com and Wal-Mart have the
money and clout to "own" whole segments of the marketplace.
Small businesses succeed by ﬁnding niches that are either
unﬁlled or only partially ﬁlled, and ﬁlling them with excellence.
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15 Principles of Internet Marketing, Conversation Marketing
1. No one's lives depend on what we do.
2. But people's livelihoods do. So take your work seriously, and take pride
3. 75% of your audience uses a search engine to ﬁnd you. Get used to it.
All the banners and 'viral' marketing on earth won't come close to results
produced by a top 5 ranking for a relevant phrase.
4. But, a broad base is better. Don't rely on just one marketing vehicle.
Build a complete internet marketing strategy that includes, at a
minimum, paid search, organic search, e-mail and online PR.
5. Never underestimate the power of an angry customer.
6. Never underestimate the power of a happy customer.
7. Pretty is great. Easy is better.
8. You're not the customer.
9. Karma exists. Treat customers and prospective customers with
respect, and they'll reciprocate. Spam them, annoy them, and lie to
them, and they'll retaliate.
10. Risk is necessary.
15 Principles of Internet Marketing |
11. Risk without measurement is suicide. Analytics are a must.
Internet Marketing Strategy:
Conversation Marketing 12. IT is not marketing. Don't make them run the web site. It's not fair to
13. A web site does not equal an internet marketing strategy.
14. Plan, but adapt. Don't be stubborn. Listen to what your customers tell
you in their response.
15. All marketing has a message. What's yours?
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People aged 12 - 24 are notching up 23 cumulative hours a day,
engaged in up to ﬁve activities simultaneously.
NMA, April 2009
On the phenomenon of "continuous partial attention": over 25% of
Internet users surveyed in the UK, FR, DE, IT, US, and Japan in
October 2008 said they go onto the Internet at the same time as
watching TV "most of the time".
Ofcom, November 2008
36% of UK broadband users (aged 16-55) state they have both the
TV and Internet on in the same room every day. On weekdays the
time when TV and Internet multi-tasking is most likely to happen is
around 8pm in the evening.
TNS/YouTube Media & Audience Study (broadband users aged 16-55), December 2008
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ADV: time and expenditure
Time & Investments
One of the biggest reasons to be
hopeful about the outlook for the
continued growth of the Internet
advertising industry is that when you
look at the time U.S. consumers
spend on the Internet versus the
amount of ad dollars which go there,
the proportions are out of whack. As
recently as 2008, U.S. consumers
spent 38 percent of their media
consumption time on the Internet
(29 percent if you exclude teens
and young adults), but it attracted
only 8 percent of advertising dollars.
Whereas consumers spent 37
percent of their media consumption
time on TV, which captured 32
percent of advertising dollars. If you
believe that time is money,
advertising dollars should continue
to ﬂow towards the Internet.
JPMorgan Forecasts A 10.5 Percent Rebound In U.S. Display Advertising in 2010
- 163 -
What to measure
How and What to measure: just say “no” to fluffy metrics.
The problem all these audience metrics have, whether youʼre talking about an online
websiteʼs visitors, a magazineʼs circulations numbers, or a television programʼs gross
rating points, is that none of them are actually reﬂective of how many people actually
saw, listened to, or otherwise engaged with your ad.
why would we fantasize that it is possible to measure anything accurately across the
entire World Wide Web? The only metrics that can be measured accurately are how
much the advertiser spends (expenses) and how much they make (revenue).
I recommend advertisers get their own Web metrics in order, and
learn how to tie them to the only reports that matter: P&L, Balance
Sheet & Cash Flow.
1. They must continuously work with their audience to understand its needs
and focus on providing relevant content and advertisements.
2. They must work with publishers to help them clearly deﬁne what theyʼre
trying to accomplish. They must deﬁne key performance metrics (e.g., the
actions that will deﬁne their success).
http://www.grokdotcom.com/2007/07/13/what- 3. Work with advertisers so that the ads they produce are contextually
advertisers-should-be-measuring/ relevant to the content they are producing.
4. Make sure advertisers continuously optimize the ads to achieve better
5. Constantly be in discussions with the audience so the promises that
marketers make are being met (e.g., not pissing off YOUR audience).
the only time people react to an ad is if itʼs relevant to them.
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Where to act
Where to act
Special operations “Display” Adv
Direct Search Adv
- 165 -
What about customer
- 166 -
Cost to Acquire Customers (CAC)
The ability to monetize those customers, or LTV (which stands for Lifetime Value of a Customer)
- 167 -
Customer acquisition cost
Besides a future marketing campaign, the Internet marketing consultant will
evaluate the current advertising campaign that the company has.
Any advertising costs spotted by the Internet marketing consultant that is
equal to or more than the customer acquisition cost should be reviewed.
Once the Internet marketing consultant knows the customer acquisition cost,
he can then use this as a reference point to gauge new means of attracting
customers. Companies should be about the customer and not themselves if they
want to stay in business.
A good Internet marketing consultant knows that all businesses need customers
To acquire and keep a customer, a business has to show a customer how their
product or service beneﬁts the customer.
Every company needs a good customer service or customer relations
department also. Internet marketing consultants should design an efﬁcient
customer acquisition strategy.
Customers want to know and feel secure that if they do have a problem with the
product or service that there is some sort of warranty from the company. To retain
a customer, a company has to provide good communication with the
http://www.webdynamic.com.au/online- customer. Customers want to know that they are appreciated by the company.
internet-marketing/customer-acquisition- Customers want to feel satisﬁed with the product or service that the business is
cost.html providing, and they want to be treated with respect.
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Customer retention Vs value retention
Customer retention & value retention
1. Increasing purchases as tenure grows:
a. over time, customers come to know their suppliers. Providing the
relationship is satisfactory, trust grows while risk and uncertainty
are reduced. Therefore, customers commit more of their
spending to those suppliers with whom they have a proven and
satisfactory relationship. Also, because suppliers develop deeper
customer intimacy over time, they can enjoy better yields from
their cross-selling efforts.
2. Lower customer management costs over time:
a. the relationship startup costs that are incurred when a
customer is acquired can be quite high. It may take several years
for enough proﬁt to be earned from the relationship to recover
those acquisition costs. For example, it can take six years to
recover the costs of winning a new retail bank customer. In the B2B
context in particular, ongoing relationship maintenance costs such
as selling and service costs can be low relative to the costs of
winning the account. Therefore, there is a high probability that the
http://searchcrm.techtarget.com/feature/ account will become more proﬁtable on a period-by-period basis
Customer-retention-vs-value-retention as tenure lengthens. These relationship maintenance costs may
eventually be signiﬁcantly reduced or even eliminated as the
parties become closer over time. In the B2B context, once
automated processes are in place, transaction costs are effectively
eliminated. Portals largely transfer account service costs to the
customer. In the B2C context, especially in retailing, the
assertion that acquisition costs generally exceed retention
costs is hard to prove. This is in part because it is very difﬁcult
to isolate and measure customer acquisition costs.
Ecommerce make it more measurable
3. Customer referrals:
a. customers who willingly commit more of their purchases to a
preferred supplier are generally more satisﬁed than customers who
do not. They are therefore more likely to utter positive word-of-
mouth and inﬂuence the beliefs, feelings and behaviours of
others. Research shows that customers who are frequent buyers
are heavier referrers. For example, online clothing customers who
have bought once refer three other people; after ten purchases
they will have referred seven. In consumer electronics, the one-
time customer refers four; the ten times customer refers. The
referred customers spend about 50 to 75 percent of the referrer's
spending over the ﬁrst three years of their relationship. However, it
is also likely that newly acquired customers, freshly enthused by
their experience, would be powerful word-of-mouth advocates,
perhaps more than longer-term customers who are more
4. Premium prices:
a. customers who are satisﬁed in their relationship may reward their
suppliers by paying higher prices. This is because they get their
sense of value from more than price alone. Customers in an
established relationship are also likely to be less responsive to
price appeals offered by competitors.
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Drivers to balance
Balancing flows leveraging on online
- 170 -
Inbound marketing and its opposite outbound marketing have various meanings depending on the context.
One pair of deﬁnitions are:
Inbound marketing is a style of marketing that focuses on getting found by customers.
This sense is related to relationship marketing and Seth Godin's idea of permission marketing. David
Meerman Scott recommends that marketers "earn their way in" (via publishing helpful information on a blog
etc.) in contrast to outbound marketing where they used to have to "buy, beg, or bug their way in" (via paid
advertisements, issuing press releases in the hope they get picked up by the trade press, or paying
commissioned sales people, respectively). Next best action marketing can also be applied.
Antonym: Traditional marketing (outbound marketing) is where companies focus on ﬁnding customers by
advertising. This sense is related to intrusion marketing and Godin's term interruption marketing.
An older pair of deﬁnitions are:
Inbound marketing is market research. In contrast to the above, pieces of information about customer
needs, not customers themselves, ﬂow into the company. Knowledge of customer needs drives future
product capability. This sense is related to the term product management. Peter Drucker believed this to
be the quintessence of marketing.
Antonym: Outbound marketing is marketing communications. In this sense, information about ﬁnished
product capability ﬂows out to prospective customers who have a need for it. This sense is related to the
term product marketing.
- 171 -
CRM Key principles
1. Attracting new customers costs more than retaining
a. A satisﬁed customer stays with a company longer, spends more and
may deepen the relationship. For example a happy credit card
customer may enlist the companyʼs ﬁnancial services and later take
b. This is an easy “sell”, compared with direct marketing campaigns,
television advertisements and other sophisticated and expensive
approaches to attract new customers.
2. Customer service costs real money
a. Real costs are associated with providing customer service and
companies spend in line with a customerʼs value. If you are a high
value customer or have the potential of being high value, you will be
serviced more carefully.
b. Companies reduce the cost of customer service by using telephone
voice response systems, outsourcing call centers to cheaper
locations, and self-servicing on the internet. However, companies risk
http://www.mftrou.com/quality-customer- alienating customers through providing an impersonal service.
c. Some internet banking companies are bucking the trend by charging
customers to contact them. In exchange, customers receive better
interest rates due to reduced overheads and are satisﬁed with that.
3. Understand your customersʼ needs and meet them
a. How can you meet your customersʼ needs, if you donʼt know them?
To understand your customerʼs needs, just listen to the “voice of the
customer” and take action accordingly.
b. Customer listening can be done in many ways, for example feedback
forms, mystery shopping, and satisfaction surveys. Some companies
involve senior employees in customer listening to ensure decisions
beneﬁt the customer as much as the company.
4. Good process and product design is important
a. Good quality customer service is only one factor in meeting customer
needs. Well designed products and processes will meet customersʼ
needs more often. Quality movements, such as Six Sigma, consider
the “cost of quality” resulting from broken processes or products. Is it
better to service the customer well than to eradicate the reason for
them to contact you in the ﬁrst instance?
5. Customer service must be consistent
a. Customers expect consistent quality of customer service; with a
similar, familiar look and feel whenever and however they contact the
b. Say you visit an expensive hairdressing salon and receive a friendly
welcome, a drink and a great haircut. You are out of town and visit the
same hairdressing chain and get no friendly welcome, no drink and a
great hair-cut. Are you a satisﬁed customer who will use that chain
again? Probably not, as you did not receive the same customer
service – which is more than a good hair-cut.
6. Employees are customers too
a. The quality management movement brought the concept of internal
and external customers. Traditionally the focus was on external
customers with little thought given to how internal departments
interacted. Improving relationships with internal customers and
suppliers assists delivery of better customer service to external
customers, through reduced lead-times, increased quality and better
b. The “Service-Proﬁt Chain” model developed by Harvard University
emphasizes the circular relationship between employees, customers
and shareholders. Under-staffed, under-trained employees will not
deliver good quality customer service, driving customers away. Equal
effort must be made in attracting, motivating and retaining employees
as is made for customers, ultimately delivering improved shareholder
returns. Better shareholder returns mean more money is available to
invest in employees and so the circle continues.
7. Open all communications channels
a. The customer wants to contact you in many ways – face to face, by
mail, phone, fax, and email - and will expect all of these
communication channels to be open and easily inter-mingled.
b. This presents a technical challenge, as it requires an integrated,
streamlined solution providing the employee with the information they
need to effectively service the customer.
8. Every customer contact is a chance to shine
a. If a customer contact concerns a broken process, then empowered
employees will be able to resolve the complaint swiftly, possibly
enhancing the customerʼs perception of the company. Feeding back
this information allows corrective action to be made, stopping further
occurrences of the error.
b. If you inform customers about new products or services when they
contact you, you may make a valuable sale, turning your cost centre
into a proﬁt centre. This is only possible when you have a good
relationship with your customer, where you understand their speciﬁc
needs. A targeted sales pitch will have a good chance of success, as
the customer is pre-sold on the companyʼs reputation.
9. People expect good customer service everywhere.
a. Think about an average day – you travel on a train, you buy coffee,
you work. You expect your train to be on time, clean and be a
reasonable cost. You expect your coffee to be hot and delivered
quickly. You expect your work mates to work with you, enabling you to
get the job done.
b. People become frustrated when their expectations are not met, and
increasingly demand higher service quality in more areas of their
c. Providing outstanding customer service at the right price is the holy
grail of most companies. It is worth remembering that we all
experience customer service every day. We can learn from these and
apply them in our own line of work, whatever it may be. The quality of
customer service will make you stand out from your competitors –
make sure itʼs for the right reasons
- 173 -
CRM Planning - The Approach
Planning CRM - The Approach
- 174 -
CRM - The Touchpoints
Customer Touch points
Online Touchpoints an Example (Talisma Corporation Customer interaction tools)
- 175 -
Business intelligence deﬁnition
Business Intelligence (BI) refers to
technologies, applications and practices used to
support decision making.
BI technologies provide historical, current, and predictive views of
business operations. Common functions of Business Intelligence
technologies are reporting, online analytical processing, analytics, data
mining, business performance management, benchmarking, text mining,
and predictive analytics.
Business Intelligence uses technologies, processes, and
applications to analyze mostly internal, structured data and business
Competitive Intelligence, is done by gathering, analyzing and
disseminating information with or without support from technology and
applications, and focuses on all-source information and data
http://en.wikipedia.org/wiki/Business_intelligence (unstructured or structured), mostly external to, but also internal to a
company, to support decision making.
- 176 -
How Are People Behaving on Your Site
- 177 -
Online Reputation Management
Online reputation management, or ORM, is the practice of consistent research and
analysis of oneʼs personal or professional, business or industry reputation as
represented by the content across all types of online media. It is also sometimes
referred to as online reputation monitoring, maintaining the same acronym.
Speciﬁcally, the online media that is monitored in ORM is:
1. Traditional or mainstream websites
2. Social networks
3. Consumer Review sites
4. Social news/bookmarking sites
5. Collaborative Research sites such as Yahoo Answers, Rediff Q&A
6. Independent discussion forums
7. User-generated content (UGC)/Consumer Generated Media (CGM)
9. Microblogging (Twitter....)
10. Blogging communities
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Online reputation measuring tools
Online reputation measuring tools
1. Search & Aggregators
1. To begin with, we'll look at Trackur. This new tool scours blogs, news
sites, images, and videos for you to track your name, company brands,
industry trends, or even news about your competitor. The tool allows you
to search for a keyword or keywords, but also allows you to ﬁlter that
search to include only instances where that keyword is coupled with
other words and/or ﬁlter out instances where certain other keywords are
present. Once the search has been customized, it can be saved and
then subscribed to via an RSS feed or email. The items Trackur ﬁnds
can also be bookmarked or emailed.
1. One of the simplest and easiest ways to track something on the way,
your reputation or otherwise, is to use Google Alerts. With this free
service, you can search either all of Google's properties, or you can
specify that only News, Blogs, Web, Video, or Groups is searched. You
can then conﬁgure the Alerts results to be emailed to you either as it
happens, once a day, or once a week. There is also a page where you
can edit the alerts once they are created or delete them when they are
no longer in use.
1. The blog search engine Technorati is also a good free resource for
tracking what's being said in the blogosphere. The service indexes
posts as they are published and with any search you do on the site,
there is an RSS button that you can use to subscribe to the search.
When viewing the results on the web site, you can click between tabs to
see just the Posts, Blogs, Photos, or Videos containing your search
1. A simple online tool called MonitorThis lets you subscribe to results of a
search from 22 different search engine feeds at the same time. The
engines searched include the main search engines like Google, MSN,
and Yahoo, as well as smaller engines like Plazoo, Blogmarks, and
Topix. The results are provided in OPML format. Although you have to
copy and paste the code into a ﬁle you create on your computer in order
to subscribe, it's still worth checking out as the list of engines searched
makes this a good resource.
e. Create Your Own Custom Search
2. Social Search
1. Social meter scans the major social websites to analyze a webpage's
social popularity. Currently we scan Del.icio.us, Digg, Furl, Google, Jots,
Linkroll, Netscape, Reddit, Shadows, Spurl, Technorati, and Yahoo My
1. Social Media Alerts Like Google Alerts but for social media.
Receive free daily email alerts of your brand, company, CEO, marketing
campaign, or on a developing news story, a competitor, or the latest on
a celebrity.Social Mention is a social media search engine that searches
user-generated content such as blogs, comments, bookmarks, events,
news, videos, and microblogging services. It allows you to track
mentions of your brand across all of these areas.
Other social search engines include Serph and Keotag.
1. A service from Keotag is a great tool for bloggers and those researching
a topic in the blogosphere. The site lets you just search for items that are
tagged with a particular keyword.
3. Blog Comments
ii. Backtype is a tool for monitoring blog comments. If people commented on
various blog posts, citing your name, you never used to have a way of
tracking it, until now. Backtype is a service that lets you ﬁnd, follow, and
share comments from across the web. Whenever you write a comment with
a link to your Web site, Backtype attributes it to you.
4. Social Comments
ii. Yacktrack lets you search for comments on your content from various
sources, such as Blogger (blogger), Digg (Digg), FriendFeed, Stumbleupon
(StumbleUpon), and Wordpress (WordPress) blogs. For instance, if you
comment on a blog, you can locate other people who are commenting on
that same blog post and rejoin the conversation.
iii. My favorite feature of this tool is the “Chatter” tab, which allows you to
perform keyword searches on social media sites and then notiﬁes you of
instances of your brand name. Yacktrackʼs search page results also give
you an RSS feed for the search term. You can also use Commentful and
co.mments to track your social comments on the web.
5. Discussion Boards
ii. Along with blogs and traditional news stories, discussion boards are
another channel where people can gather in a community and talk about
you. Most people disregard discussion boards until they see other sites
commenting on information viewed on them. Use boardtracker.com to get
instant alerts from threads citing your name.
iii. Boardreader and Big Boards are other tools that work similar to this one
ii. Twitter (Twitter) messages (tweets) move at the speed of light, and if you
donʼt catch them they will spread like a virus. Using Twitter search (tweetzi
Twitter Search), you can locate any instances of your name and decide
whether you want to tweet back or ignore them. It really depends on the
context and meaning of the tweet.
iii. Conduct a search for your name, your companyʼs name, or various topics
youʼre interested in and then subscribe via RSS. Twilert and TweetBeep
are additional tools you can use to receive email alerts.
7. Tools & Services
1. While all the other tools listed are quite rudimentary, this one is rather
complex and intelligent. Instead of being hit with hundreds or even a
thousand results for your brand name, Filtrbox only delivers the most
relevant, credible mentions of things you need to track. Its “FiltrRank”
technology scores content based on three dimensions: contextual
relevance, popularity and feedback. You can look back to previous
searches 15 days out for free as well.
8. Your Network
a. networkA lot of people overlook a strong network when it comes to monitoring
their brands. If you have a robust network, especially people in your industry
who observe the same keywords as you, then you will receive important
updates without even asking for them.
- 179 -
Benchmarking is the process of comparing the business processes
and performance metrics including cost, cycle time, productivity, or
quality to another that is widely considered to be an industry
standard benchmark or best practice. Essentially, benchmarking
provides a snapshot of the performance of your business and helps
you understand where you are in relation to a particular standard.
The result is often a business case and "Burning Platform" for making
changes to make improvements.
Also referred to as "best practice benchmarking" or "process
benchmarking", it is a process used in management and
particularly strategic management, in which organizations
evaluate various aspects of their processes in relation to best
practice companies' processes, usually within a peer group
deﬁned for the purposes of comparison.
This then allows organizations to develop plans on how to make
improvements or adapt speciﬁc best practices, usually with the
aim of increasing some aspect of performance. Benchmarking may
be a one-off event, but is often treated as a continuous process in
http://en.wikipedia.org/wiki/Benchmarking which organizations continually seek to improve their practices.
- 180 -
Strategic plan - process
Strategic Plan - Process
Deﬁne the vision and set a mission
statement with hierarchy of goals and
Monitor and get feedback from Analysis conducted according to the
implemented processes to fully control the desired goals
Implementation of the agreed upon Formulate actions and processes to be
processes taken to attain these goals
- 184 -
What about the
the circumstances, objects, or conditions by which one is surrounded
- 185 -
Why study the environment
Why study the environment?
- 186 -
Situation: the environment
1.73 billion – Internet users worldwide (September 2009).
18% – Increase in Internet users since the previous year.
738,257,230 – Internet users in Asia.
418,029,796 – Internet users in Europe.
252,908,000 – Internet users in North America.
179,031,479 – Internet users in Latin America / Caribbean.
67,371,700 – Internet users in Africa.
57,425,046 – Internet users in the Middle East.
20,970,490 – Internet users in Oceania / Australia.
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Situation: social Online
Environment: Online Social
126 million – The number of blogs on the Internet (as tracked by BlogPulse).
84% – Percent of social network sites with more women than men.
27.3 million – Number of tweets on Twitter per day (November, 2009)
57% – Percentage of Twitterʼs user base located in the United States.
4.25 million – People following @aplusk (Ashton Kutcher, Twitterʼs most followed user).
350 million – People on Facebook.
50% – Percentage of Facebook users that log in every day.
500,000 – The number of active Facebook applications.
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Ecommerce Conversion Rate
Environment: Ecommerce Conversion Rates Statistics
When benchmarking conversion rate, site owners should go beyond headline conversion rates to
compare these four key types of conversion rate:
1. Overall site session (visit) conversion rate
a. as reported in the Coremetrics example
2. Visitor conversion
a. ratecalculated by dividing the number of conversion events by the number of unique
visitors within a deﬁned time period.
3. Shopping basket conversion rate
a. percentage who add item to basket who convert, e.g.
4. Session search conversion rate
a. (percentage of visits which include a search (notice that conversion rate and average
order value (AOV) tends to be higher for these visitors
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Situation: Ecommerce Conversion
Situation: Ecommerce Conversion 2
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Situation: social commerce
Situation: Social commerce
Luxury Institute research revealed that, of the customers who shop for high-end merchandise online, 78
percent of them did so in order to ﬁnd the best price while nearly as many, 77 percent, did so to compare
brands (BrandWeek, January 2010).
Customer Stories campaign drove 13,000 new prospects for La-Z-Boy. (La-Z-Boy, 2009)
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Agrawal et al. (2001) have performed a further analysis where they modeled the theoretical change in net
present value contributed by an e-commerce site in response to a 10% change in these performance drivers:
a. Visitor acquisition cost – 0.74 % change in NPV
b. Visitor growth – 3.09 % change in NPV
a. Customer conversion rate – 0.84 % change in NPV
b. Revenue per customer – 2.32 % change in NPV
a. Cost of repeat customer – 0.69 % change in NPV
b. Revenue per repeat customer – 5.78 % change in NPV
c. Repeat customer churn rate – 6.65 % change in NPV
d. Repeat customer conversion rate – 9.49 % change in NPV
This modeling highlights the importance of on-site
marketing communications and the quality of
service delivery in converting browsers to buyers and
buyers into repeat buyers.
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Target: Online Consumers behaviour
Need "End-to-End" Convenience
use the Internet to make their lives easier,
and tend to log on with a speciﬁc purpose
Simpliﬁers spend just 7 hours per month
on the Web, they have the longest tenure
online (49% have been online for over 5
Read Online, Buy Ofﬂine Want "What's New"
Sportsters (just 4% of active online users) Sportsters They access over four times as many
pages as the average user, and move
focus on sports and entertainment sites. quickly among the domains, continually
seeking new experiences.
constitute just 8% of the active user
Read Online, Buy Ofﬂine
population, but they account for 32% of
Only half of Routiners have made
purchases online, and just 6% have made
Routiners a site needs
ﬁve or more online purchases. cutting-edge
Online Consumer design and
Routiners want superior content and the features, constant
sense they are getting "something special What they want updates, a strong
online brand, and
an assortment of
Thrilled by the Hunt services.
only 8% of active online users and spend
less time online than the average user, Excited by the Novelty
they represent 52% of eBay visitors
account for 36% of the active user
sites must appeal to Bargainers population
them on both rational
and emotional levels,
satisfying their need for just 42% have made purchases online
competitive pricing, the What they want Connectors (versus an average of 61%)
excitement of the
"search," and the desire 40% of them have been online less than
for community two years
GOAL Move them to simpliﬁers
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Structure of a goal
Company Target Company goal
Create new online intermediary
the evaluation and selection of
Channel structure modiﬁcations. Target market strategies appropriate segments and the
Partner with new online or existing development of appropriate offers.
Positioning and Deﬁne online customer value proposition
differentiation strategies. (OVP).
how should internal structures be
changed to deliver e-marketing
Organisational restructuring required. ONLINE
how should the structure of links with other GOALS
organisations be changed to achieve e-
Internet will primarily complement the
Resourcing - Internet
companyʼs other channels or primarily
replace other channels
sell more existing products
into existing markets
sell into new market Market development
Market and product the balance on investment on customer
CRM focus and ﬁnancial control Conversion
digital products or services development acquisition and retention
can be developed that can be Product development strategies
delivered by the Internet. Retention
new products are developed which
are sold into new markets Diversiﬁcation
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Online goals in short
5 key goals of Online Marketing
1. Objective Sell
a. Deﬁne objectives for selling to the customer online
2. Objective Serve
a. Deﬁne objectives for serving the customer online
3. Objective Speak
a. Deﬁne objectives for speaking to the customer online
4. Objective Save
a. Deﬁne objectives for saving online
5. Objective Sizzle
a. Deﬁne objectives for enhancing the brand online
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10 online marketing goals
Top 10 Online Marketing Goals for B2B Marketers
1. Improve Number of Leads -
a. bottom line is lead generation and improving ROI.
2. Improve the Quality of Online Leads -
a. better leads can mean quicker and potentially more sales.
3. Improve the Overall Online Experience -
a. keep your users' needs ﬁrst and foremost to help build lifetime value and relationship. Improving the
online experience will help improve repeat visits and help generate top of mind awareness.
4. Improve the Engagement Rate -
a. engaging the user with proper use of conversion triggers and calls to action can help increase the
number of leads that are generated.
5. Move Prospects Through the Buying Process/Funnel -
a. A key goal for B2B marketers should be to help solve the needs of their prospects by providing them with
all of the information they need to make a purchase decision as they work through the buying funnel.
6. Increase the Number of Qualiﬁed Visitors to your sites -
a. increasing the number of qualiﬁed visitors to your site means a greater chance for obtaining more
7. Reduce Cost of Leads -
a. an effective online strategy can help reduce the cost of each lead that is generated.
8. Increase Online Inquiries -
a. one of the more important conversions that B2B marketers should focus on is to increase online inquiries
that have the potential to become qualiﬁed leads. Depending on the phase of the buying funnel the user
is at, you can use your online marketing strategy to intercept the prospect and increase the number of
email requests or phone calls for additional information inqueries that the user may have.
9. Promote Ofﬂine Sales -
a. use online to drive ofﬂine business. The majority of actual B2B transactions will take place ofﬂine.
10. Deliver Customer Service and Value to Your Target Market(s) -
a. rounding out the top 10 online marketing goals for B2B marketers is delivering value to your site visitors.
No explanation is needed as providing customer interception points and delivering effective customer
service online can provide positive results ofﬂine.
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1. Internet Stats
Luxury Online marketing Short
Gerd Leonhard - Luxury Future
! twitter.com/gleonhard http://www.slideshare.net/gleonhard/luxury-futures-the-
! www.mediafuturist.com future-of-the-luxury-market-gerd-leonhard-luxury-
Tutorial - Marketing Plan
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Proportion of marketing budget allocated to digital channels
Allocation of budget to digital media channels
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Optimize digital marketing Mix
Optimize digital marketing Mix
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Digital Marketing Mix Starting point
Digital Marketing Mix Starting point
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Digital Marketing Mix: Onsite
Digital Marketing Mix: Onsite
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Digital Marketing Mix: Social media
Digital Marketing Mix: Social media
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Digital Marketing Mix: the Budget
Digital Marketing Mix: the Budget
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Digital Marketing Mix in short
Digital Marketing Mix in short
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Digital Marketing Mix
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The conversation Prism
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Social Network and Communities on Fashion
a. Chictini is a fashion social network that focuses on fashion discovery. You can submit products and show off your personal
style while connecting with people like yourselves.
a. 2threads is a social network with style. It is a place where anyone with a penchant for fashion can come to look, love and buy
fashion all in one, easy to reach place. No matter who you are or where you are from 2threads is a place where you can
engage in all your guilty fashion-fixated vices.
a. Fashionising.com is a fashion community and social network for people who love fashion. Keep up with cutting edge fashion,
become a fashioniser.
a. The Fashion Network is a social networking website designed to be used specifically by those passionate about fashion and
style. Here you will be able to connect with like minded individuals from across the globe. The Fashion Network is brought to
you by Chatter.
a. My Kids Fashion is the kids fashion industry's first social network created for designers, retailers, manufacturers and
consumers located across the globe. My Kids Fashion is managed by DashinFashion.com - Online Guide to Kids Fashion
a. StyleCaster is a fashion social network where influencers connect with each other, explore the world of style, share content
and get recommendations from peers and experts around the world.
a. Stylehive.com is an online style club for people who live for fashion, design and shopping. It's where you meet your style
muses and follow them as they discover and share their latest finds.
Part social-networking club, part pop-culture lab , Stylehive.com is one big ensemble cast of trendsetters creating, discovering
and buying the next big thing!
a. Tee shirt company base on people contribution
a. community based tee shirt company
a. Our platform helps to democratize fashion, where fans give the yay or nay to which designs get produced and sold. The
UsTrendy community helps uncover the gems of top-rated indie designers, who get a shot at making their fashion dreams a
a. Community contributions with a brand-based cataglogue: news, articles, videos, images
a. Weardrobe is the easiest way to share photos of what you wear
a. Polyvore's easy-to-use virtual styling tool lets people mix and match products from any online store to create their own fashion
collections called "sets". The Polyvore community consists of trendsetters, shoppers and aspiring stylists, who create more
than 30,000 sets daily and spend an average of 10 minutes on the site per visit. With over 6 million unique visitors and 140
million pageviews per month, Polyvore is the largest fashion community site in the world.
a. The Visual Platform For Creative People
Promote and distribute your work
Curate your own content through the Visual CuratorTM
Discover people and build relationships
Spot trends and get accessto sources of inspiration
a. A site for adventurous fashionistas to try their hand at creating their own clothes with patterns, tips, a forum and more.
a. the web's premiere shoe community. Here you can organize your shoe collection to perfection, and show it off to your friends
and other shoe aficionados. Share shoe pics, shop for shoes, read our Morning Shoe Report, and enjoy our superior collection
of shoe quotes, and shoe videos, updated every weekday. Or, join our vibrant community of shoe bloggers:
a. StyleMob is a new community for street fashion inspiration. Our mission: to create a place for real people to have a say about
fashion. When you come to StyleMob, you find out how real people put together their outfits and upgrade your own look with
a. Blog and “standard” community Get advice, give advice, share excitement about a new purchase, or just have a good yak.
Even with thousands of members, the forum is an intimate place where great friendships have been bor
a. NOTCOT is a visual filtration of ideas + aesthetics + amusements. NOTCOT's two sites have become the daily sources of
inspiration for creatives everywhere, fighting the good fight against "creative block" since 2005 with visually stunning imagery,
the latest in international trends, and a passion for all things well designed.
a. is a community of creatives, design lovers, and trendsetters - where .org serves as the studio bulletin board gone digital - each
image and caption brings you to a place worth visiting. It's about sharing what inspires you
a. La première communauté de Fashion Addicts pour diffuser son Style, ses meilleurs Looks, ses bons plans mode, et gagner
des fringues !
a. It is a place for people to organize and execute their own sense of what is fashion. We want you to show us what that look is.
Style du Jour is perfect for the person who is looking to express themselves or is too busy to fuss with an unorganized closet.
We will help you organize your wardrobe online so you have an easy, manageable, and fun way to put your look together.
a. Social Shopping, celebrity monitoring, community to share your outfit and the things you love
a. upload your clothes (images are outlined) create and share your outfit, get comment and suggestion from the community
a. PopSugar Community is the place to dish on the latest gossip, share fashion finds, learn beauty secrets, review movie and tv
shows, discussmom advice, swap delicious recipes, live happy and healthy, and much more.
a. Upload your look and get comments, easy tool to create spot on images
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Social Networks: What people do
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