Prof.  Richardus  Eko  Indrajit  Chairman  of  ID-­‐SIRTII  and  APTIKOM    indrajit@post.harvard.edu    www.eko-­‐indrajit.com  

DIGITAL  MARKETING  in  CYBER  WORLD  Opportuni�es,  Common  Mistakes,  and  Lessons  Learned  

Special  Presenta�on  on  

The  Common  Defini�on  

  Marke�ng  is  the  process  of  planning  and  execu�ng  the  concep�on,  pricing,  promo�on,  and  distribu�on  of  ideas,  goods,  and  services  to  create  exchanges  that  sa�sfy  individual  and  organiza�onal  goals.  –  Mission  is  to  a�ract  and  retain  customers  

  Internet  Marke�ng  is  the  process  of  building  and  maintaining  customer  rela�onships  through  online  ac�vi�es  to  facilitate  the  exchange  of  ideas,  products,  and  services  that  sa�sfy  the  goals  of  both  par�es  or  the  use  of  the  internet  and  related  digital  technologies  to  achieve  marke�ng  objec�ves  and  support  the  modern  marke�ng  concept.  

The  Reason  to  Embrace  Internet  Marke�ng:  PROCESS  

To  reach  50  million  people:    Radio  took  34  years    Television  took  13  years    Internet  took  4  years  

The  quick  benefits:    Direct  Contact    High  Speed    Great  Variety    Mul�media    24/7  Time  

Spectrum      Borderless    Low  Cost  

The  Reason  to  Embrace  Internet  Marke�ng:  CUSTOMER  

VETERANS < 1946

BABY BOOMERS 1946-1964

XERS 1965-1980

MILLENIALS >1981

Dedicated to a job Live to work Work to live Live in the moment

Respectful of authority

Sense of optimism Contract Technology savvy

Duty before pleasure

Champions of causes

Pragmatic world Consistent expectations

Patience is a virtue Go into debt Self-reliant Street smart

Honor and integrity Team and process oriented

Attached to the edge Fun is a must

Reluctant to change Personal gratification

Authority is casual Give respect if they are respected

Patriotic Nostalgic of youth Versatility of skills Diverse in nature

The  Reason  to  Embrace  Internet  Marke�ng:  TOOLS  

Email:  ““Instant  Messaging  for  Everybody””  

Mailing  List:  ““Community  of  Interest  Update””  

Website:  ““the  Partner  that  Never  Sleep””  

Cha�ng:  ““Online  Reality  Check””  

Group  Ware:  ““Exclusive  Knowledge  Sharing””  

Blogging:  ““The  Truth  Story  Disclosure””  

Ci�zen  Journalism:  ““Eyewitness  Percep�on  Building””  

Social  Networking:  ““Effec�ve  Words  of  Mouth””    

Example  1:  Using  Relevant  Personalisa�on  

Example  2:  Customised  Communica�ons  

Example  3:  Imagina�on  Publishing  

Example  4:  Build  a  Brochure  On-­‐LIne  

Internet  Marke�ng  Mix  

Branding

Product Pricing

Individual

Communication Distribution Community

Interactivity

Tradi�onal  vs.  Modern  Marke�ng  Style  

Old media New media Comment

One-to many communication model

One-to-one or many-to-many communication model

Hoffmann & Novak (1996)states that Internet is a many-to-many medium, but for company to customer one-to-one

Mass marketing Individualized marketing or mass customization

Personalization possible because of technology to monitor preferences and tailor content (Deighton, 1996)

Monologue Dialogue Indicates the interactive nature of the WWW, with the facility for feedback

Branding Communication Increased involvement of customer in defining brand characteristics. Opportunities for adding value to brand

Supply-side thinking Demand-side thinking Customer pull becomes more important

Customer as target Customer as partner Customer has more input into products and services

Segmentation Communities Aggregation of like-minded consumers rather than arbitrarily defined target segments

Marke�ng  Process  in  Digital  World  

Sustain value

Augment value

Realize value

Communicate value

Architect value

Refine value

Find value

Customer Relationship Repository

Adapt

  Sense market trends   Understand customers   Identify opportunities   Redefine markets   Segment customers

  Choose desirable segments   Craft value propositions   Validate/adapt value propositions

  Create offerings   Customize offerings   Simplify channels   Design customer

experience

  Expand touchpoints   Price to maximize yield   Bundle/unbundle offerings   Adapt pricing/revenue strategy

  Manage brand   Deliver consistent message   Optimize communications mix   Integrate communications

  Build platforms   Generate externalities   Expand ecosystem   Enhance customer experience

  Monitor customer experience   Personalize relationships   Offer complete offerings   Institute loyalty programs

Source: Adapted from Mohan Sawhney

Simplified  Marke�ng  Planning  Stage  

- Dave Chaffey

The  10  Commandments  on  Digital  Marke�ng  

1.  Target  segments  of  one,  and  create  virtual  communi�es  2.  Design  for  customer-­‐led  posi�oning  3.  Expand  the  role  of  branding  in  the  global  por�olio  4.  Leverage  consumers  as  co-­‐producers  through  customiza�on  5.  Use  crea�ve  pricing  in  the  Priceline.com  world  6.  Create  any�me/anyplace  distribu�on  and  integrated  supply  chains  7.  Redesign  adver�sing  as  interac�ve  and  integrated  marke�ng,  

communica�on,  educa�on  and  entertainment  8.  Reinvent  marke�ng  research  and  modeling  as  knowledge  crea�on  

and  dissemina�on  9.  Use  adap�ve  experimenta�on  10.  Redesign  the  strategy  process  and  suppor�ng  organiza�onal  

architecture  

The  Seven  Deadly  Sins  of  Digital  Marke�ng  

1.  Developing  a  dead-­‐end  website  

2.  Ignoring  the  search  engines  3.  Not  targe�ng  the  PPC  dollars  4.  Was�ng  the  PPC  efforts  5.  Failing  to  get  the  messages  

across  6.  Forge�ng  lead  genera�on  

basics  7.  Forge�ng  the  back  end  

Problems  of  Internet  Marke�ng  

  Transmission  �me;    Site  conges�on;    Lack  of  organisa�on;    Lack  of  security;    Global  differences;    Customer  is  in  charge;    Time  of  visit.  

(Evans and King, 1999)

Pi�alls  of  Internet  Marke�ng  

  Tradi�onal  vs.  internet  Marke�ng  techniques;    Bad  news  travel  quickly;    Difficul�es  with  iden�fying  the  market;    Not  many  words;    Not  paying  a�en�on;    Poor  structure;    Dishonesty;    Channel  conflict.  

(Levinson and Rubin, 1995)

Conclusions  (1):  

  The  number  of  people  and  companies  doing  transac�ons  on  the  Internet  is  drama�cally  increasing;  

  No  company  should  ignore  the  power  of  Internet  in  doing  business…  

  …but  doing  business  in  the  Marketspace  is  different  from  the  marketplace;  

Conclusions  (2):    

  So  Internet  Marke�ng  is  here  to  provide  companies  with  the  way  to  achieve  a  desired  level  of  customer  sa�sfac�on;  

  Internet  Marke�ng  is  not  a  solu�on  by  itself.  Companies  must  be  crea�ve,  innova�ve  and  effec�ve  enough  in  order  to  avoid  Internet  marke�ng  problems  and  seize  its  opportuni�es.  

Prof.  Richardus  Eko  Indrajit  Chairman  of  ID-­‐SIRTII  and  APTIKOM    indrajit@post.harvard.edu    www.eko-­‐indrajit.com  

Thank  You  

Q&A