BRANDING IN THE DIGITAL AGE -YOU’RE SPENDING YOUR MONEY IN ALL THE WRONG PLACES -BY DAVID C . EDELMAN PRESENTED BY- GIRISH RAJU (B506) SOURABH DE (B525)
ABOUT THE AUTHORDAVID C. EDELMAN-He is the Global co-leader, Digital Marketing andSales Practice, at McKinsey & Company.
ABOUT THE ARTICLE The impact of branding in the digital age. How internet has been used as a tool to build relationship with brands. How INTERNET influences (positively or negatively) a brand. How traditional marketing strategies have continued to exhaust. Consumer Decision Journey.
INTRODUCTION TRADITIONAL AGE: Relation ends with sale. INTERNET AGE: Relation sustains, remains engage TOUCH POINTS: Spending more time
BLOCK THAT METAPHOR: David court 2009 carried on a study on how customerengage with brands- “The customer decision journey” (CDJ) Famous funnel metaphor to think about touch points-have used paid- media, push marketing.
THE RESEARCH REVEALED Today’s consumers take a much more iterative and less reductive journey of four stages: Consider Evaluate Buy Enjoy, Advocate and Bond
JOURNEY IN PRACTICEThere are two implication of this:Instead of focusing on how to allocate spending across media, marketersshould target stages in the decision journey. ADVERTISEMENT ADVOCACYThe second implication is that marketers’ budgets are constructed to meet theneeds of a strategy that is outdated. ONE WAY COMMUNICATION HUGE COST INVOLVEDInstead of paid media marketers should concentrate on- Owned media Earned media
LAUNCHING A PILOT To shift to a CDJ-driven strategy has three parts: understanding your consumers’ decision journey Determining which touch points are priorities how to leverage them Allocating resources accordingly
To see how consumers navigate the decision journey the following wereconsidered: WHAT THEY DO To answer this, multiple questions were framed like: How would they describe the stages of their journey, online and off? Which resources were most valuable to them, and which were disappointing? How did brands enter and leave their decision sets, and what drove their purchases in the end?
WHAT THEY SEE This consisted of questions like: How was its appearance in the search engines? How visible were they on retail sites? What do consumers review about the brand? WHAT THEY SAY The final focus was what people say online about the brand
TAKING ACTION - Shift from paid media - Marketing inserted links from its own site to retail sites - Developed programs that included online community initiatives, contests, and e-mail promotions
A CUSTOMER EXPERIENCE PLAN -The details of a customer experience plan will vary according to the company’s products, target segments, campaign strategy, and media mix NEW ROLES FOR MARKETING -Orchestrator - Publisher and “content supply chain” manager. - Marketplace intelligence leader. STARTING THE JOURNEY
HOW THE INTERNET IS USED A large number of the internet population use the internet for just searching randomly. The next large internet population is more involved in research Online videos and music Last but not the least- Social Networking.
Google conducted a research on the online and offline purchases:- Research online and purchase offline (66%) Research offline and purchase offline (13%) Research online and purchase online (20%) Research offline and purchase online (0%)
50 MILLION MARK It took radio 38 years It tool Television 13 years It took Internet 7 years It took Mobile just 3 years