Digital Marketing and the Online Dialog

1 von 93
Principles of Marketing/ E-marketing &
E-business/ Marketing and Sales
Management
Day 2: Digital Marketing
SIBE-Management-Master
Dr. Ute Hillmer
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

December 2015 Dr. Ute Hillmer
Digital Marketing
and the 360° Dialog

Seeit!
Hear it !
Say it !
Do it !

Agenda1. Framing Digital Marketing
2. The changing Customer Dialog
3. The Benefits of Digital Marketing
4. Categorizing Digital Marketing
5. The Digital Toolbox
6. Hands on Exploitation
7. Lead Generation with Digital Marketing
8. The Trends
9. Getting Started with Digital Marketing
10. Who is Digital Marketing for?
(Pre-Reading: The Digital Toolbox)

17-2
Direct,Online,SocialMedia,and Mobile
Marketing
‘The key question
is not whether to
deploy Internet
technology –
companies have
no choice if they
want to stay
competitive – but
how to deploy it.‘
Porter, M. (2001) Strategy and the Internet,
Harvard Business Review, March 2001, 62–78.

Learning Objectives
• Define direct and digital marketing and discuss their
rapid growth and benefits to customers and
companies
• Identify major forms of digital marketing strategies
and understand the underlying objective. Away from
individual tactics to the overall plan
• Understand the sales funnel in digital marketing –
Growth Hacking

The NewDirectMarketingModel
=ANewBusinessModel
For many companies
today, direct and
digital marketing
constitute a complete
model for doing
business.
Copyright © 2016 Pearson Education, Inc.
17-7

WhatDigitalBusinessesDoYouUseToday?
• What complete digital B-models do you use
today?
• Which additional ones do you know?

ANewArea in Products and Channels
Illustration copyright of Steve Blank, „The Startup Owners Manual“

RapidGrowthof DirectandDigital Marketing
Direct and digital marketing have become the fastest-growing
form of marketing.
• U.S. companies spent almost $133 billion on direct and digital
marketing in 2014
• direct-marketing-driven sales amount to over $2 trillion
= for 35% of the U.S. economy
Direct marketing continues to become more Internet-based,
and digital direct marketing is claiming a surging share of
marketing spending and sales.
• Over the next four years, digital marketing expenditures and
digitally driven sales are expected to grow 9%/year.
• 50% of total sales are influenced by online research
Source: DMA

The
to get started

The Customer
Dialog is
changing

Dialog Marketing
Is nothing new:
customer visits
telephone calls
discussions
email
business lunches
mail
trade shows
…

But Dialog Marketing had to change …
Customer Dialog is emancipated
Sender Receiver

Changing Communication to a Dialog
Sender
Receiver

CommunicationModelsfor
TraditionalandNewMedia
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013

TheDegreeof Individualization
forTraditionaland NewMedia
(a) traditional
media: same
message
(b) new media =
often unique
messages and
more
information
exchange
between
customers

Chances + Risks of a Customer Dialog
competitiveadvantage
When companies look at their
products and services from a
customer point of view, they can gain
huge competitive advantages.

enhancecustomerloyalty
Engagement of the
customer
+
Interest and appreciation
by the selling company
enhances customer
loyalty

Chances + Risks of a Customer Dialog truly
understandcustomerneedsandenhanceproducts
It’s more than online information
gathering.
Customers exchange their needs, their
preferences and their interests online.

wincustomers
Happy customers develop the need to
let other customers know that they
found a product or service that works
for them:
Word of mouth + growth hacking

3 Key Points of any (Online) Dialog
1. Build trust by helping your customer to
make the right decision. Show them a win-
win
2. Learn about the needs and problems of
your customers
3. Build an infrastructure so customers can
refer to you

Consequences: The Brand changes
The customer
fundamentally
influences the brand
– beyond any
marketing control

Consequences: Support changes
Customers exchange
experiences and
insights. They can
often help each other
timely and with a lot of
detailed knowledge

Consequences: The Dialog changes
Customers can do
more than buy –
satisfied customers
are the best sales
team

Benefits
of Digital Marketing

Task:
What are Benefits of Digital
Marketing to Buyers and to
Sellers? Pinthem!

Benefitsof DirectandDigitalMarketingto
Buyers
• Convenience
• Ready access to many products
• Access to comparative information about
companies, products, and competitors
• Interactive and immediate
17-9

ThePowerof Recommendations:
„I‘llHaveWhatShe isHaving“

Benefits, Online Buyers see
• Low Prices (38%)
• Shopping Convenience
(35.1%)
• Easy To Compare
(33.1%)
• Free Shipping (31.5%)
• Time Saving (30.8%)
• Easy To Buy (29.2%)
• Range of Products
(17.4%)
Infographic by Invesp (sources data from eMarketer and Internetretailer.com)
Don’t take these things at face value, because not everything
is as it seems. Ask your customers or test it

Benefit: Low Prices + Price Comparison
• Price
transparency
• Easy price
comparison
• Comparison
Shopping
Engines
Source Will Web Browse for Food: Wall Street Journal

Benefit: Customer Service
A survey by A Forrester
survey asked 4,600 US
consumers across 12
industries which they
thought was more
important, “great
customer service” or
“low prices.” Customer
service won across the
board.
Source: https://experiencematters.wordpress.com/2009/05/17/customer-service-trumps-price/http://conversionxl.com/

Benefit: Shopping Convenience
Shoppers order when
and where it’s most
convenient for them.
Mobile devices are
changing eCommerce
Every year, mobile e-
commerce sees
significant growth and
is redefining how we
shop online.
Source: http://www.ibtimes.com/mobile-devices-are-changing-ecommerce-
heres-how-1297265 http://conversionxl.com/

Benefit: Easy to Compare
• People always
compare
• The average
consumer will
visit 3 websites
before making a
purchase
• He/she will likely
spend more
money with sites
they visit more
frequently.
http://conversionxl.com/

Benefit: Free Shipping
For whatever reason,
a free shipping offer
that saves a
customer €5 is more
appealing to many
than a discount that
cuts the purchase
price by €8.

Benefit: Time Saving/ Easy to Buy
We want ways
to get our
products faster.
#1 having stuff
buy regularly
delivered to
where you need
it on a
subscription
basis.

Benefit: Time Saving/ Easy to Buy
#2 through product
recommendation
engines

Benefit: Range of Products
Selection matters:
You should have enough inventory
to satisfy your customers demands.
Torrid:
“we have good looking stuff,
probably in your size” which for the
plus size market, is important.

Benefit:PeerExchange – CommunityBuilding
Lean from others,
exchange
experience and
have a sense of
community

Benefitsof DirectandDigitalMarketingto
Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
• Cost reductions from:
– reduced time in customer service
– online sales
– reduced printing and distribution costs of mktg. material
• Measurability of Marketing Effectiveness 17-10

Benefitsofdigitalmarketing–The5Ss
The 5 Ss of Internet marketing
Sell more
Serve extra benefits
Speak 2 way
Save on Marketing
Sizzle

Task:
What Components and
Forms of Digital Marketing
do you know?
Circle, where you have
personal experience

FormsandComponentsof „DigitalMarketing“
Company Website
Google Adwords
PPC Advertising
Press Releases
Search Engine Marketing
Search Engine Optimization
Keyword Research
Landing Pages
Blogging
Content Marketing
Lead Capture Forms
Social Media Marketing
Facebook
Twitter
Google+
LinkedIn
Instagram
Pinterest
WhatsApp
Snapchat
Copywriting
eCommerce
WebDesign
Mobile Responsive
Affiliate Marketing
Autoresponders
EMail-Marketing
Video-Marketing
CRM Systems
Display Ads
Banner Ads
Podcasting
Graphics design
Text Message Marketing
Retargeting
Site Programming
…

How can we
categorize Digital
Marketing?

Goals to be achieved in Marketing
Information
Goals
Image
Goals
Economic
Goals
Improved customer insight
Presentation as a market
leader
Awareness, visits,
registrations, sales…
Improved product
insight
Presentation as innovation
leader
Customer loyalty and
-penetration
Generation of ideas
Presentation as a Good
Citizen Sales and recommendations
… …
Cost reduction

Key Online Media Types by Controllability

Key Online Media Types
by DigitalArchitecture
Source: modified after Storymaker
WEB-
SITE
Micro-
Site
Online-
PR
PUSH/PULL
News-
letter
Customer
WEB-
SITE
Communication
Channel
Corporate Hosting

Applications of Digital Marketing
• Transactional e-
commerce site
• Services-
oriented/relationship
building
• Brand Building site
• Portal or media site
• Social network or media
site
• Freemium service sites
Note that these types overlap!

Applications of Digital Marketing
• An advertising medium
• A direct-response medium
• A platform for sales transactions
• A lead-generation method
• A distribution channel
• A customer service mechanism
• A relationship-building medium

Channelsrequirean
IntegratedDigitalMarketingStrategy
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice

The
Digital
Toolbox

How to use Digital Media in Marketing

The Social Media Toolbox
Slide by Solis + Thomas
Choose your
channels
wisely!

TypesofSocialMedia Interaction
by Source
Existing Social Media
(Facebook, Xing, Twitter,
Linkedin, etc.)
Corporate Social Content
Corporate Blogs, Forums,
branded / unbranded Social
Networks, etc.)
Customer-facing
employee
Monitoring /
Data Mining
Market-triggered
social interactions
Business-triggered
social interactions
Social
Marketing
Social
Sales
Social
Service
Questions &
complaints
Market
Information
Customer
Preferences
(outside-to-outside)
(inside-to-outside
inside-to-inside)
Market
Marketing Sales Service
Socially-enabled
Marketing
Socially-enabled
Sales
Socially-enabled
Service
F&E
Socially-enabled
F&E
based on Cipriani 2009
WEB-
SITE
Micro-
Site

by Purpose
Marketing Sales Service/Support
Social Marketing
Insight
Social Sales
Insight
Social Support
Insight
Innovation
Social Innovation
Insight
Rapid Social
Marketing Response
Rapid Social
Sales Response
Rapid Social
Support Response
Crowedsourced
F&E
Social Event
Management
Socially-enabled
Service
Social Campaign
Tracking
Sales Referal
Proactive Lead
Generierung

The Corporate Website: „Center Stage“

The Corporate Webseite: Vendors

The Corporate Website
• Company controls the content and the design
• Company can backlink all media channels to the
site
• One stop overview, monitor and archive
• Low cost professional site with Open Source tools
like Wordpress und Joomla, templates, plug-ins und
RSS feeds.

The Corporate Website
• Company must manage and maintain the site
including its layout and design, content, tech.
support and its URL(s)
• Corporate Websites are usually seen as push
marketing
• Cost and time intensive

TheCorporateBlog today
blog.daimler.de

TheCorporateBlogyesterday
blog.daimler.de

Dell Blogs Blogs,Forums

TechCenter Blog, Chat, Community

Dell Shares Investor Relations

The Corporate Blog
• You can show that you know a lot about a topic
• You are easily found by search engines (search engines follow
backlinks; a good article easily generates 10-50 backlinks in a few days)
• It is free for the customer and free media for you as a
vendor
• You can segment your target market nicely
• It can be the starting point for new content, hosts
conversations, can provide context for news
• It can be a starting point for personal brands
• Small companies can get to the top of search engine
rankings

The Corporate Blog
• Frequency is a must  time consuming
• You are not credible in a “controlled” bog
• You don’t control what is said in an open employee
blog
• Generating relevant and interesting content on a
frequent basis is not easy

TheCorporateBlog
Make some rules.
http://www.ibm.com/blogs/zz/en/guidelines.html
Empower all employees… they are the brand.
• Behave professionally and ethically.
• Take personal responsibility.
• Include a disclaimer: your opinions are yours,
not IBM’s.
• Don’t pick fights.
“Use social media as a means to expose IBM’s
experts—and expertise—to the world.”
Adam Christensen
Manager, Social Media Communications

Social Networks

How Social Networks work
Think of Social Networks as a
sports club!

How Social Networks work 2
• Voluntary active or passive membership
• Special areas of interests
• One communicates where one has something to say (or
not), has an opinion, answers questions, asks questions, …
• If one is open, friendly and nice, friendships will develop
that value ones expertise and opinion
• Once one has built a reputation, it will be accepted, even
appreciated if one recommends and hints one ones
products and services, online shop, other products…

How Social Networks work 3
Friends are easily found,
one links up, meets, networks, …
and own expertise distributes …

Dell on Facebook Community

Dell on Facebook Ratings

Dell on Google +

Festool on Facebook

Festools: Brandscouts

Festools: Brandscouts gesteuert

Dialog Marketing
Frage: Würdet Ihr Eure Festool Werkzeuge anderen
Personen ausleihen?

Dialog Marketing
User Support

Dialog Marketing
Complaints

Dialog Marketing
Product Comparison
28 Kommentare später …

Service Communication
Dialog Marketing

Pride
Dialog Marketing

Festool on Facebook DevelopmentofFans
Mrz10
Apr10
Mai10
Jun10
Jul10
Aug10
Sep10
Okt10
Nov10
Dez10
Jan11
Feb11
Mrz11
Apr11
Mai11
Jun11
Jul11
Aug11
Sep11
Okt11
Nov11
Dez11
Jan12
Feb12
Mrz12
Apr12
Mai12
Jun12
Entwicklung Facebook Fans
curtsey of Klaus Danner, Manager Customer Communications

Social Networks
• Direct customer communication
• Largest social Network
• Many forms of interaction
• Entertainment
• Full display of many media
formats (pictures, movies, games, ...)
• Cool ideas result in huge reach
• Personal reputation
management
• Facebook statistics
• Efficient marketing tool
• Gives companies “a face”
or “faces”
• Connectable with twitter,
Google+, linkedin…
• Mobile app
• Location updates
• Many apps enlarge
functionality

Social Networks
• Uncontrolled environment
for employees
• Time-consuming
• Less exciting products
can have a hard time
gaining recognition
• Requires high frequency
of relevant content
generation
• Privacy problems
– Like button (documenting all
activity on the website)
– Open FB tab in Browser
– Apps can result in spam
• Hard to separate private and
business
• FB can change the rules as
they like (free service)
Practice

Business Oriented Social Networks
• More serious environments,
no personal content
• Suitable for personal business
profile pages
• Customer + recruiter research
• Personal reputation
management
• Business oriented groups
• Business contact initiation and
management
• Increasingly commercial +
spam
• Time consuming
• Not all audiences are in
these networks
• Often regional

Enterprise Networks (ESN)
• an internal workplace that
streamlines communication among
co-workers (Mashable)
• Enterprise social networks will
become the primary communication
channels for noticing, deciding or
acting on information relevant to
carrying out work. (Gartner)
• Offer a variety of communication
functionalities and media forms

Enterprise Social Networks
• Community approach
• One place for (almost) all
communication
• give employees a sense of
online community
• help forge connections between
departments, especially within
larger corporations
• Multimedia repository
• Increasingly commercial +
spam
• Time consuming
• Not all audiences are in
these networks
• Often regional

Content Sharing Platforms
• Online Communities for archiving and sharing
content such as:
– Photographs and images
– Videos
– Audios
– Presentations

Supplemented by a DigitalArchitecture
WEB-
SITE
Micro-
Site
Online-
PR
ONLINE
PR
PUSH/PULL
Source: Storymaker
News-
letter
Communication
Channel Corporate Hosting

Dell onYouTube

Festtool onYoutube

Content Sharing Platforms
 Easy way to display,
archive and share
 No need for own
infrastructure and
storage
 Possible real time
reporting of events
 Products / content is
ranked by audience
• Copyright problems
• Free data upload or
information spread is
limited
• No quality control of
content and material

Crowd Sourcing / Open Innovation

IdeaStorm OpenInnovationPlatform
19.12.2011

Dell Shop eCommercewith Social Content

Festool – Dealer Partnerships

Recommendation Platforms
• bad products are exposed
• Here users share
experiences, perceptions
and recommendations
about products, services
and organizations .
Sometimes detailed
discussions can evolve..
• Products are ranked by
audience
• credibility
• good products are usually
ranked positively

Microblogging

Twitter
Microblogging is a form of blogging that allows
users to send brief text updates (or micromedia
such as photos or audio clips) and publish them.
These messages can be submitted by a variety of
means like text messaging, instant messaging, E-
mail, digital audio or the web. (Wikipedia)

Dell onTwitter

DellOutlet Twitteras anOutletstore

DellOutlet Germany Twitteras anOutletstore

DellOutlet China Twitteras anOutletstore

Werkzeuge für höchste AnsprücheFestool onTwitter
curtsey of Klaus Danner, Manager Customer Communications

Werkzeuge für höchste AnsprücheFestool onTwitter
twitter.com/festool
2.854 Follower 7/15
978 Follower 7/12

DellCares Twitteras aSupportChannel

Tools for the toughest demandsFesttool onTwitter ausgewählteFollower
curtsey of Klaus Danne, Manager Customer Communications

Twitter
• Mobile
• real time
• fast
• cheap
• real-time market research
• advertising allowed
• direct customer contact
• great monitoring tool (alternative
clients, e.g. tritterdeck)
• interest based, not friendship
based
• global
• multimedia
• only short messages (Twitter 140
characters)
• short lifetime of tweets
• a lot of meaningless information
in twitter sphere
• difficult to measure
• spam / unpleasant followers
possible
• fast media for fast + easy
mistakes

Mobile Messaging
• WhatsApp: a cross-platform instant messaging application
that allows users to exchange text, image, video and audio messages for
free. It is especially popular with end users to do international text
messaging and phone calls. In addition to basic messaging, it provides
group chat, phone service + location sharing options. Recently, first
business information messages get distributed, e.g. trading & currency
information.
• Snapchat: add captions, drawings and filters to photos and
videos (also known as "snaps"). Unlike other messaging apps, you can view
snaps for a maximum of 10 seconds, and then it's gone for good. Anything
shared through the service self-destructs, leaving no evidence that it
existed.

by Source
Existing Social Media
(Facebook, Xing, Twitter,
Linkedin, etc.)
Corporate Social Content
Corporate Blogs, Forums,
branded / unbranded Social
Networks, etc.)
Customer-facing
employee
Monitoring /
Data Mining
Market-
triggered social
interactions
Business-
triggered social
interactions
Social
Marketing
Social
Sales
Social
Service
Questions &
complaints
Market
Information
Customer
Preferences
(outside-to-outside)
(inside-to-outside
inside-to-inside)
Market
Marketing Sales Service
Socially-enabled
Marketing
Socially-enabled
Sales
Socially-enabled
Service
F&E
Socially-enabled
F&E
based on Cipriani 2009
WEB-
SITE
Micro-
Site

Areas ofAction in Social CRM
Social Marketing
Insight
Social Sales
Insight
Social Support
Insight
Innovation
Social Innovation
Insight
Rapid Social
Marketing Response
Rapid Social
Sales Response
Rapid Social
Support Response
Crowedsourced
F&E
Social Event
Management
Socially-enabled
Service
Social Campaign
Tracking
based on Altimeter Group 2010
Sales Referal
Proactive Lead
Generierung

Startingpointfor SocialCustomerRelationship
Management
Social Marketing
Insight
Social Sales
Insight
Social Support
Insight
Innovation
Social Innovation
Insight
Rapid Social
Marketing Response
Rapid Social
Sales Response
Rapid Social
Support Response
Crowedsourced
F&E
Social Event
Management
Socially-enabled
Service
Social Campaign
Tracking
based on Altimeter Group 2010
Sales Referal
Proactive Lead
Generierung

SocialMediaMonitoring
Remember:Theytalkaboutyou!
• They do it with or without you … you should steer the
direction best you can!
• Dell Hell was a showcase starting point in 2005
19.12.2011

Why Social Media Monitoring?
CustomerServiceandSupport,CRM
Identify and address core customer needs
Sales advice
Setup / integration support
Runtime support
Customers help customers
Identify and bond with advocates
Identify and utilize star experts
Reduce support cost
19.12.201

Social Media Monitoring
IssueManagement
What expectations do different stakeholders
hold?
Identify areas with potential for conflict early and
address them proactively (before the broader public gets
aware)
Identify, monitor and construct actions to
manage/reduce/neutralize stakeholder
discrepancy of expectations.
Develop an “early warning system”
19.12.201

Evolution in CRM
Transaction- and process oriented
Technology enabled customer processes in order to
support and organize sales-, marketing and support
activities (Shaw)
Eigenes
Unternehmen
Konkurrenz Supplier / Partner
Kunde Kunde
KundeKunde
Kunde Kunde
Kunde
CRM 1.0
Eigenes
Unternehmen
Konkurrenz Supplier / Partner
Kunde Kunde
KundeKunde
Kunde Kunde
Kunde
Kunde Kunde
Kunde Kunde
Kunde Kunde
CRM 2.0
Conversation- and process oriented
Involving customers for better customer insight,
trust building, building brand loyalty, problem
recognition and customer segmentation.
More customer insight through his network
connections and communities.

Dell „SocialMedia ListeningCommandCenter“
Objective
 Inform: customer feedback in real time
 Listen and act: recognize alarm signals
early and act upon them
 Ensure effective + appropriate
customer interaction
 Support: Information + support for the
influencers and communities with
influence online
Target
 all relevant departments
 customers and prospects
 communities / influencer
SM Strategy
 control center
Check out:
Google Analytics, Klout Score; Hotsuite

on

Task:
Discover Online Marketing
Strategies and their
Differences
Discuss how companies use direct, online,
social media and mobile marketing to reach
their desired outcome. 17-4

Investigate Digital Marketing Strategies
(TeamSize 3)
Investigatetwoexampleofthislist:
• Transactional e-commerce site
– Amazon, Dell, Mymuesly.com, Apo-rot.de, e-bay, Audible
• Services-oriented/relationship building
– Daimler Trucks, Festools.de, Accenture, British Gas, Salesforce, IBM, Bosch, Zeiss Camera Lenses,
Sage.com, Krones.de, Dell.com, Avira,
• Brand Building site
– Nestle, Guinness, Coca-Cola, Litago.no, Tango, your favourite brand? …
Investigateoneexampleofthislist:
• Portal or media site
– Yahoo!, Bing, Silicon.com, wall street journal, …
• Social network or media site
– Xing, LinkedIn, Facebook, Twitter, …
• Freemium service sites
– Evernote, Spotify, Feedly,

Hands on Exploitation (TeamSize3)
What comes across as their Value Proposition?
Who seems to be their Ideal Customer?
In what channels are they present?
• Why are they there? (their goal)
• Who is their ideal customer in this activity? (their #1 target)
• What media channels do they use? Explain why you think they use them.
• Do they do cross media activities? Their 360° approach
• Do you think they achieve their goal? What do they do well, what should be
improved? (your evaluation)
• Show us some examples of what they do -especially really good or really bad (teach
us)
Take notes, prepare a presentation or demonstration
that SHOWS a bit what you saw,
you have 90 min preparation time
10 Minutes presentation time
we’ll discuss Digital Media while you work and present

Lead Generation
Online: The Digital
Launch Process

Key Campaign Planning Issues
• The Goal
– which specific goals should be set for online campaigns
and how do we measure success?
• The Reach
– How to get traffic
• The Response
– What response mechanisms will be most effective?

Campaigns are Not New

Digital Campaign Communication Flow
• One-to-one
• One-to-many
with and without the
Internet

Product / Project Launch Campaign
Source: Myrco Thum

Product Launch Formula
http://productlaunchformula.com/sideways-video/

Mental Triggers
• Community
• Anticipation
• Authority
• Reciprocity
• Social Proof
• Scarcity
• Conversation
• Trust
• Events/Rituals
• Likability
• Commitment

The
Trends
Image by Conversion XL

Figure 1.12 Evolution of web technologies
Source: Adapted from Spivack (2007)

AStartingPoint:
IntelligentPersonalAgentsNov.2015
TNW News Nov 3, 2015

Campaign Characteristics Offline-Online

Dankeschön!

237 von EndSeitenzahl
HERZLICHEN DANK FÜR
IHRE AUFMERKSAMKEIT!
GIBT ES FRAGEN?
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

Digital Marketing and the Online Dialog

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