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MBA631 DigitalMarketing andCommunicationsWorkshop 1Going DigitalCopyright Notice
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Welcome• Introduction of the workshop facilitator• Who is in the Class?– Tell us about your background andexperience with ‘digital’.– What are your goals?The pace of technological change is theSLOWEST it will ever be!This affects marketing and your consumersThis Topic’s Big IdeaAdopted from: Claveria, K 2017, 4 examples of how technology is changing consumer behaviour, retrieved 6 April 2020https://www.visioncritical.com/4-examples-how-technology-changing-consumer-behavior-1/Learning Objectives1. Examine the characteristics of being adigital leader.2. Analyse the importance of digitalmarketing in business today.3. Examine how technology is changingconsumer behaviour.4. Analyse the criteria if a business shouldgo ‘digital’.What isDigital Transformation?Adopted from: Flachowsky, S 2016, Are you a Digital Leader? Detecon Consulting, retrieved 31 March 2020https://www.detecon.com/sites/default/files/20160331_digital_leadership_v1.4.pdfDigital Transformationand Digital MaturityAdopted from: Flachowsky, S 2016, Are you a Digital Leader? Detecon Consulting, retrieved 31 March 2020https://www.detecon.com/sites/default/files/20160331_digital_leadership_v1.4.pdfWorkshop Activity 1.1Look at the Digital Maturity Grid in the previousslide and determine if you are a DigitalVisionary, Digital Leader, Digital Beginner, orDigital Conservative.Pair up or get into groups of three to discussyour ‘digital maturity’ and why you think you arein that category.What can you do to become a Digital Leader?The Emergence ofDigital Marketing• Marketing has only been regarded as adistinct discipline since the 1950s, but hasexisted for thousands of years.• Digital marketing is a much more modernphenomena.• It is the product of the recent explosion indigital communication technologies.Technology’s Disruptive Impact• New communication technologies have alwaysinfluenced the way marketing is conducted.• The inventions of the printing press, radio andtelevision all had major impact on the marketingpractices.• Previous technologies have so far not beenreplaced, but continue to exist alongside newertechnologies (to a certain extent).Workshop Activity 1.2If digital marketing is NOT about technology, thenwhat is it about?Brainstorm with the people around you and reportback to the class.The Growth of the Web• The creation of the World Wide Web in 1991 ledto the widespread popularity of the Internet.Between 1991 and 1997 the web grew at a rateof 850% per year.• The number of web users doubled between2005 and 2010.• In 1995, less than 1% of the world’s populationhad an internet connection. Today approximately50% of the world does.Adopted from: Internet Live Stats 2017, retrieved 6 April 2020 https://www.internetlivestats.com/internet-users/Number of Internet UsersAdopted from: Digital Around the World 2020, retrieved 31 March 2020 https://datareportal.com/global-digital-overviewWorkshop Activity 1.3In groups of 3-4, discuss how technology hasunderpinned the major milestones and changesin marketing. For example, email emerged in1960. What were some other key discoveringand launches after that until now?Don’t just focus on the internet.Watch me: https://www.youtube.com/watch?v=0cXZjQ-6lMkWhy Individuals Venture OnlineExploring theinternetQuest forinformationEntertainment OnlineshoppingAdapted From: Jackson, G & Ahuja, V 2016, “Dawn of the digital age and the evolution of the marketing mix”, Journal of Direct,Data and Digital Marketing Practice, vol. 17, no. 3, pp. 170-186.How Technology has ChangedConsumer Behaviour
Social influencers willpowerfully inform andguide consumers in theirpurchasing decisions.
Mobile devices will beshoppers’ most valuedshopping partner.
Online reviews impact67% of respondents’purchasing decisions.
34% of shoppers say theirmobile device is theirpreferred shopping.
Adapted From: Harrison, K, 2017, Top 10 trends that will transform digital marketing in 2017. Forbes, retrieved 8 April 2017https://www.forbes.com/sites/kateharrison/2017/01/09/top-10-trends-that-will-transform-digital-marketing-in-2017/#7ef36d583bf5Hinckley, D. 2015. New Study: Data Reveals 67% of Consumers are Influenced by Online Reviews. retrieved 8 April 2017https://moz.com/blog/new-data-reveals-67-of-consumers-are-influenced-by-online-reviewsHow Technology is ChangingConsumer Behaviour Cont.• Beacon technology allows for proximitymarketing– Next Big Thing – Beacons: What they’ll do forretail. https://youtu.be/ZGL0HpNm5BYCNET 2014, Next Big Thing – Beacons: What they’ll do for retail.How Technology is ChangingConsumer Behaviour Cont.• Technology allows for an increasedcustomer experience that strengthensloyalty and purchasing behaviour.– High growth in identity-based marketing• Omnichannel identity solution that can recognise acustomer at any touchpoint:– Human;– Physical;– Digital.• Across websites, apps, digital ads, email, physicalstores and call centres.Watch mehttps://www.youtube.com/watch?v=0756MytUo0UAdopted From: Signal n.d., Digital Marketing in 2017: Trends and Predictions, retrieved 5th of April 2020https://www.signal.co/au/resources/digital-marketing-2017-infographic/How Technology is ChangingConsumer Behaviour Cont.• Customer data powers next-generationtouchpoints– Emerging technologies will have big impacton the customer experience:• Artificial intelligence (61%);• Internet of Things (37%);• Virtual Reality (17%).Adopted From: Signal n.d., Digital Marketing in 2017: Trends and Predictions, retrieved 5th of April 2020https://www.signal.co/au/resources/digital-marketing-2017-infographic/How Technology is ChangingConsumer Behaviour Cont.• Artificial Intelligence (AI)– the new user interface (UX) as it takes on theprimary role of interacting with both customersand employees. (Accenture, 2017).– will be a key point of distinction for businessversus competitors. (Accenture, 2017)– will sharpen the algorithms that power theautomated buying and selling of inventory.– promises to give consumers more control overwhat brands can connect with them, when andhow (Waters, 2017).How Technology is ChangingConsumer Behaviour Cont.Watch this short video “Artificial Intelligenceand How It Will Change ConsumerBehaviour”Watch Me:https://youtu.be/jnUIjTIPyEQHow Technology is ChangingConsumer Behaviour Cont.• Internet of Things (IoT)– Connected devices enable faster insights into productperformance, consumer trends, and purchasingbehaviour.– Vastly accelerates product R&D using sensors,diagnostics and other user interaction data fromdevices; get to know in real-time what is working viaconsumers.– Can use data from the connected devices to refinethe marketing process (CITO Research, 2015).Adopted from: CITO Research 2015, How the IoT Is Shaping the Future of Customer Experience and Product Development, CITO Research,retrieved 6 April 2020 https://www.splunk.com/pdfs/white-papers/how-the-iot-is-shaping-the-future-of-customer-experience-and-productdevelopment.pdfHow Technology is ChangingConsumer Behaviour Cont.How it Works: Internet of Things (IoT)Watch Me:https://youtu.be/QSIPNhOiMoEHow Technology is ChangingConsumer Behaviour Cont.• Virtual Reality (VR)– customers can “see” how products will look whenused in a broader context:• online eyewear retailer Glasses.com offers avirtual try-on app that allows customers to createvirtual 3D renderings of their faces.• handy means of providing more information tocustomers who want it:– Scanning each image will show contentoptions, such as brand founder interviews,product videos, animated GIFs, YouTubeplaylists and product pages.How Technology is ChangingConsumer Behaviour Cont.Buy+ The First Complete Virtual Reality (VR)Shopping Experience. This is amazing – andthe future …Watch me: https://youtu.be/-HcKRBKlilgWorkshop Activity 1.4In teams of 2-4, discuss how you think AI,IoT and VR will impact the customerexperience in the future.Share your thoughts with the rest of theclass.How Technology is ChangingConsumer Behaviour Cont.• Wearable technology will shape consumerlifestyle– Traditional wearable gadgets allow consumers totrack their own health data, including activitiesand diet.– Growing wearable market; this space will reach$25 billion by 2019, with smartwatches like theApple Watch taking 60 percent of the marketvalue.– Watch mehttps://www.youtube.com/watch?v=kXZtml-7e00Adopted from: Claveria, K 2017, 4 examples of how technology is changing consumer behaviour, retrieved 6th of April 2020https://www.visioncritical.com/4-examples-how-technology-changing-consumer-behavior-1/How Technology is ChangingConsumer Behaviour Cont.• Fulfillment solutionsdrive seamlesscustomer experience– As digital shopping is thenorm, companies need tooptimise the supply chainto deliver a superiorshopping experience.(Claveria, 2017)– Consumers want seamlessshipping, delivery andreturns(https://www.youtube.com/watch?v=AHs51sv4AZs)– More free and one-dayshipping, returns andexchanges(https://www.youtube.com/watch?v=AEKMgCmLcR)– Pressure on businesses toimprove the customers’experience and remove allfriction in the customer’slifecycle.Adopted from: Claveria, K 2017, 4 examples of how technology is changing consumer behaviour, retrieved6 April 2020 https://www.visioncritical.com/4-examples-how-technology-changing-consumer-behavior-1/Digital MarketingYes or No?• Two key questions youneed to ask when itcomes to deciding tohave a digital strategy.– Is my audience online /is it going to be online?– Are my products /services / brands suitedto digital marketing?– https://www.youtube.com/watch?v=KPQPsdxpXuM• Depends very much onthe nature of thatbusiness• Where is the businessnow• Where does thebusiness want to go inthe futureDigital MarketingYes or No? Cont.• Conducting a digital audit helps a brand to workout how they are performing.• A digital audit focuses on four components:Advantages ofDigital Marketing+ Cost-Effective:+ Cheaper to establish apresence;+ Large amounts ofinformation can becommunicated at lowercosts.+ Ability to broaden thenumber of potentialcustomers reached whilealso focusing in onparticular areas of themarket.+ Information can bepresented in aninteractive format+ Provides rich resourcesfor buyers, sellers andlearners.+ Increased dynamicpersonalisation andcustomisation.+ Consumers can generatecontent.+ Allows for multiplecommunication vehiclesand platforms.Disadvantages ofDigital Marketing– Campaigns can becopied.– Can get drowned by toomuch online ad clutter.– Will not be takenseriously if not doneprofessionally.– May not be appropriatefor your product / service.– Too much competition.– Company’s reputationcan be damaged bynegative feedback.– Highly dependent ontechnology which can beprone to errors (e.g., nonworking links).– Not yet embraced byeveryone, especially thebaby boomer market.Adopted from: Digital Marketing Phillipines 2013, The Pros and Cons of Having A Full Internet Marketing Campaign(Infographic) retrieved 5 April 2020 http://digitalmarketingphilippines.com/the-pros-and-cons-of-having-a-full-internet-marketingcampaign-infographic/.Offline Businesses• You do not need to be selling online toembrace digital marketing.– If your customers research online (whichapplies to most products and services), thenyou will need a marketing and digitalmarketing strategy.– You must determine which kinds of digitalmarketing are useful for a product / service,and when traditional marketing may be moresuitable.Workshop Activity 1.5• Custom-made guitarmaker.• New wood-fired pizzadelivery in a small ruraltown population 10,000.• Solo massage therapist.• 24/7 fitness centre.• Fish and chips shop.• Local car hire service.• A funeral home.• A government agency.• A child care centre.• Lawn-mowing service.Form groups of 3-4 people. From the list ofbusinesses below, discuss the pros and cons foreach in ‘going digital’. For example, what do each ofthem have to consider if a campaign goes viral?Summary• Before considering ‘going digital’, need to considerwhere the business is in its digital transformation. Isthere a digital leader in the organisation?• Digital marketing is beyond placing ads on the web;new technologies such as VR and AI are impactingthe way consumers engage.• One needs to understand the various technologies,especially mobile, affects consumer behaviour andexperiences.• Businesses need to be aware of the impact acampaign can have on the business if it goes viral.Assessments RecapAssessment #1: Digital Marketing Audit(Individual).Assessment #2: Digital Marketing Trends(Team).Assessment #3: Digital Marketing Plan(Individual).Next WeekUnderlying legal and ethical considerationsof Digital Marketing
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