Trends in Digital Marketing and Business Strategy

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Technology, data and design are key to successful organisations, supported by the right culture, what are the latest trends?

Curiously, while speaking of customer experience CX and their ‘journey’, there is little focus upon customer driven strategies or CGM customer generated media content that is informed, logical, authentic and economic?

‘From Prateek Vatash of Econsultancy via AMI Australian Marketing Institute – Digital Intelligence Briefing – Executive Summary

Econsultancy’s 2018 Digital Trends report, published in association with Adobe, is based on a global survey of 12,795 marketing, creative and technology professionals in the digital industry across EMEA, North America and Asia Pacific.

Now in its eighth year, the research looks at the most significant trends that will impact companies in the short to medium term. As part of this year’s study, we have also identified a number of top-performing companies in order to identify how they are focusing their activities and investments differently compared to their peers.

High-performing companies are those organisations that exceeded their top 2017 business goal by a significant margin, and who have also significantly outperformed their competitors.  Key insights from the research include:

 

Companies continue to focus on the customer experience (CX), as well as the content required to facilitate this. Organisations committed to CX are shown to outperform their peers.
– Asked about the single most exciting opportunity for the year ahead, optimising customer experience (19%) again comes out on top, ahead of data-driven marketing that
focuses on the individual (16%) and creating compelling content for digital experiences (14%).
– Organisations with a ‘cross-team approach with the customer at the heart of all initiatives’ are nearly twice as likely to have exceeded their top 2017 business goal by a significant margin (20% vs. 11%).
– Just under two-thirds (62%) of companies agree they have ‘a cohesive plan, long-term view and executive support for the future of [their] customer’.
– The top strategic priority for organisations in 2018 is content and experience management. Almost half (45%) of companies surveyed rank this as one of their three most important priority areas for the year ahead, with a fifth (20%) stating that this is their primary focus.

 

We are entering a ‘design and creativity renaissance’, with top-performing companies recognising the importance of these capabilities to complement data and technology excellence.
– The survey has found that just under three-quarters (73%) of respondents say their companies are investing in design to differentiate their brands.
– Organisations describing themselves as ‘design-driven’ are 69% more likely than their peers to have exceeded their 2017 business goals by a significant margin (22% vs. 13%). – – Similarly, organisations where creativity is highly valued are 46% more likely to have exceeded their 2017 business goals by a significant margin (19% vs. 13%).
– Organisations that ‘have well-designed user journeys that facilitate clear communication and a seamless transaction’ are 57% more likely to have significantly surpassed their 2017 business goals (22% vs. 14%).

 

Investment in technology and related skills is paying dividends, with integrated platforms fast-becoming a prerequisite for success.
– A lack of integrated marketing technology reduces the chances of providing a seamless customer experience and can also be frustrating for marketers and other employees who want to go about their jobs without unnecessary restrictions in their ability to acquire, retain and delight customers.
– In terms of their tech setup, 43% of organisations report a fragmented approach with inconsistent integration between technologies. Top-performing companies are almost three times as likely as their mainstream peers to have invested in a highly-integrated, cloud-based technology stack (25% vs. 9%).
– Digital skills are vital for a range of marketing tools and platforms. Almost three-quarters (73%) of respondents agree that their companies are ‘combining digital marketing skills with technology’. Companies doing this are nearly twice as likely to have surpassed their 2017 business goals by a significant margin (20% vs. 11%), according to our analysis.

 

AI set to play a growing role in helping marketers to deliver more compelling real-time experiences.
– When asked about the themes and technologies they are most excited about over a three-year time frame, ‘delivering personalised experiences in real time’ is by far the most popular choice across all regions, with more than a third (36%) of company respondents, and 40% of their
agency counterparts, selecting this option.
– Top-performing companies are more than twice as likely as their peers to be using AI for marketing (28% vs. 12%). Only 15% of companies are already using AI, but a further 31% are planning to do so in the next 12 months. Looking only at respondents with annual revenues of more than £150m, the proportion of organisations using AI increases to 24%.
– Analysis of data is a key AI focus for businesses, with companies keen to create insight out of the vast quantities of often unstructured data being generated by customers’ activity. On-site personalisation is the second most-commonly cited use case for AI.’

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Digital vs. Traditional Marketing – Kotler

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Digital vs. Traditional Marketing – Kotler

Digital marketing facilitates WOM word of mouth and horizontal communication within any target market with the customers being central in strategy and outcomes, complemented by more detailed ROI, and requiring more analysis of digital or e-consumer behaviour.  The digital marketing strategy should be viewed as the system or software development lifecycle is, along the customer journey, based upon user or customer input making the system live, dynamic and relevant.

What are the differences and similarities between traditional and digital?

Philip Kotler – Traditional to Digital Marketing (Image copyright Marketing insider Group)

Following is a summary of Philip Kotler’s Marketing 4.0 from The Marketing Journal (Kotler, Kartajaya & Setiawan 2018)

‘Marketing 4.0 is the sequel to our widely-recognized concept of Marketing 3.0, which calls for brands to touch the human spirit.

Digital technology is increasingly moving at the heart of most modern businesses today. As OECD states, digital economy is fast percolating a wide range of industries, from bank­ing, energy and transportation to media and health. No wonder thus how often we hear of the word ‘dis­ruption’ in the context of business.

Moving towards marketing 4.0 requires balancing our use of machines and devices with human contact to strengthen customer engagement.

 

From Traditional to Digital Marketing

As we move from traditional to digital, market­ing has undergone fundamental transformation in the way its various elements are incorporated. Let’s take a look at the four most critical shifts:

From ‘Segmentation and Targeting’ to ‘Customer Community Confirmation’

For brands to be able to penetrate these com­ munities and get their messages across effectively, they need to fit in naturally – acting as friends, showing care and genuine concern to address cus­tomers’ needs and wants. In essence, the process of segmentation, targeting and positioning is made more transparent.

 

From ‘Brand Positioning and Differentiation’ to ‘Brand Characters and Codes’

In this age of digital marketing, a brand needs to be dynamic and versatile in what messages it delivers and how. But what should remain consis­tent is the brand’s character and codes, regardless of the content of the messages that it delivers. The brand’s character – its raison d’être- is what defines its personality, it is what makes the brand stand true to its core, even if the outer imagery is flexible – think Google (with its ever-changing Doodles) or MTV – how they remain flexible with their varying designs, yet solid as brands.

 

From ‘Selling the 4P’s’to ‘Commercializing the 4C’s’

In view of greater connectivity in the digital economy, armed with increased customer partic­ipation, we reckon the emergence of a new set of marketing mix, the 4C’s – co-creation, currency, communal activation, and conversation.

Traditional customer service revolves around treating customers as kings, but in the collabora­tive customer care approach, they are viewed as equals. While customer service would focus solely on addressing their concerns while still attempting to stick to strict guidelines and standard operating procedures, collaborative care would put genuine effort into listening and responding to the cus­tomer, consistently following through, on terms agreed upon by both company and customer. In the connected world, this collaborative process is more relevant to customer care wherein customers are invited to participate in the process by using self-service facilities.

 

Integrating Traditional and Digital Marketing

Industry observers have been debating for a while whether traditional marketing is dead, in view of the rising influence of, and marketing spend in, digital marketing. What we believe however is that digital is not supposed to replace traditional marketing. Both are meant to co-exist and have their own roles to play across the customer journey.

Traditional marketing is still quite effective in building awareness and interest in brands, but digital marketing plays a more prominent role as customers go on to build closer relationships with brands. The goal of digital should be to drive action and advocacy, and in view of greater accountability, the focus should be on driving results, as opposed to traditional marketing where the focus should be on initiating customer interaction. In essence, Marketing 4.0 aims to help marketers identify and prepare for the shifting roles of traditional and dig­ital marketing in building customer engagement and advocacy.’

 

What does this all mean?

  • Digital marketing should not be viewed simply as a technical channel for budget allocation, while it includes community, word of mouth or horizontal communication with social media channels.
  • Underlying brand character remains the same but with constant customer participation and collaboration as per the 4C’s customer generated content, authenticity, horizontal communication via word of mouth, and reinforcement of the message.
  • Digital should complement traditional marketing’s building awareness and interest with customer interaction, also analysis of customer engagement, decision and action to inform ROI well.
  • Marketing strategy (development) should be viewed as a dynamic system, not unlike the systems or software development lifecycle (SDLC) for the duration of the customer journey.
  • Any system must to be based upon the needs of all stakeholders including customers, personnel, and users by continuous feedback for analysis (of outcomes) to inform improvements (including ROI).

 

For more blog articles about digital marketing and consumer behaviour click through to blog Education, Training and Society.

References & Bibliography:

Kotler, P, Kartajaya, H & Setiawan, I 2016, Marketing 4.0: Moving from Traditional to Digital, Wiley, New Jersey.

Kotler, P, Kartajaya, H & Setiawan, I 2018, ‘Marketing 4.0: When Online Meets Offline, Style Meets Substance, and Machine-to-Machine Meets Human-to-Human’, The Marketing Journal, viewed 6 August 2018, <http://www.marketingjournal.org/marketing-4-0-when-online-meets-offline-style-meets-substance-and-machine-to-machine-meets-human-to-human-philip-kotler-hermawan-kartajaya-iwan-setiawan/&gt;

 

 

Marketing Strategy – 4Ps – 7Ps – 4Cs

The Marketing Mix 4P’s and 7P’s Explained

The advent of significant service sectors and digital marketing and communications, have changed both marketing strategy and dynamics of business in reaching consumers.

From the Marketing Mix (2018):

‘Before we go into all the elements of the marketing mix, and to avoid confusion between the 4p’s, 7p’s and even the 4c’s – you should pay attention at the image below to understand what makes up the entire marketing mix.

4Ps 7Ps and 4Cs in marketing strategy and digital world.

4Ps or 7Ps in Marketing? (Image copyright MarketingMix 2018)

The image above is a simplistic diagram of the elements that are included in a marketing mix.

It is a basic concept, but here’s the cold hard truth…

If you don’t understand it in detail or at all, then there is a fairly certain chance that you are missing out on the key ingredients that will ensure scalable success from the ground up.

It has been said many, MANY times in business that if you don’t know your target market well enough and figured out what they exactly want, you’ll commit entrepreneurial suicide and the business will inevitably fail.

On the other hand, you can be sure to attract mountains of profits when you have a deep understanding of these concepts. Understand this fully and you will know exactly how to maximize profits on your own sustainable business or help become a valuable asset within your company and gain endless promotions.

Sadly, for many existing marketers and aspiring marketers, this concept is glossed over as “everyone seems to know what it is” and is disregarded as basic knowledge. But do you really know what it is? Let’s find out.

Now, what is a marketing mix, exactly?

 

  • Marketing Mix 4P’s Product, Price, Place and Promotion.

  • Marketing Mix 7P’s People, Process and Physical Evidence.

  • Marketing Mix 4C’s Customer Value, Cost, Convenience and Communication.’

 

Of the above key changes have occurred in how ‘people’ ‘communicate’ in a digital environment carrying word of mouth WOM quickly and broadly to attain value from trusted sources, in other words out of the control of conventional marketing.

 

Reference:

Marketing Mix 2018, The marketing mix 4P’s and 7P’s explained, viewed 17 July 2018, < http://www.marketingmix.co.uk >

 

 

 

EU GDPR – Digital Marketing – European Commission – General Data Protection Regulation

What impact will the EU General Data Protection Regulation (GDPR) have upon advertising, media, marketing and social media channels in both the EU and outside?

How important is involvement of IT/web teams, customers, legal, financial, communications and marketing?

EU EC GDPR 2018 description for business and marketing

European Commission GDPR General Data Protection Regulation (image copyright European Commission)

The European Commission GDPR

According to the European Commission:

Fundamental rights

The EU Charter of Fundamental Rights stipulates that EU citizens have the right to protection of their personal data.

Legislation

The new data protection package adopted in May 2016 aims at making Europe fit for the digital age. More than 90% of Europeans say they want the same data protection rights across the EU and regardless of where their data is processed. (European Commission, 2018)

Scope of the GDPR

From the technology consultancy Trunomi (2018):

‘The EU General Data Protection Regulation (GDPR) replaces the Data Protection Directive 95/46/EC and was designed to harmonize data privacy laws across Europe, to protect and empower all EU citizens data privacy and to reshape the way organizations across the region approach data privacy. The key articles of the GDPR, as well as information on its business impact, can be found throughout this site.

An overview of the main changes under GDPR and how they differ from the previous directive

  • IncreasedTerritorial Scope (extra-territorial applicability)
  • Penalties
  • Consent
  • Data Subject Rights
  • Breach Notification
  • Right to Access
  • Right to be Forgotten
  • Data Portability
  • Privacy by Design
  • Data Protection Officers’

 

Australian context for the GDPR

From the Office of the Australian Information Commissioner (OAIC 2018):

Key messages

The European Union General Data Protection Regulation (the GDPR) contains new data protection requirements that will apply from 25 May 2018.

Australian businesses of any size may need to comply if they have an establishment in the EU, if they offer goods and services in the EU, or if they monitor the behaviour of individuals in the EU.

The GDPR and the Australian Privacy Act 1988 share many common requirements, including to:

  • implement a privacy by design approach to compliance
  • be able to demonstrate compliance with privacy principles and obligations
  • adopt transparent information handling practices.

There are also some notable differences, including certain rights of individuals (such as the ‘right to be forgotten’) which do not have an equivalent right under the Privacy Act.

Australian businesses should determine whether they need to comply with the GDPR and if so, take steps now to ensure their personal data handling practices comply with the GDPR before commencement.

Issues of non-compliance

However, Hern in The Guardian (2018) when observing large personal data using companies states:

Privacy policies from companies including Facebook, Google and Amazon don’t fully meet the requirements of GDPR, according to the pan-European consumer group BEUC.

An analysis of policies from 14 of the largest internet companies shows they use unclear language, claim “potentially problematic” rights, and provide insufficient information for users to judge what they are agreeing to.

“A little over a month after the GDPR became applicable, many privacy policies may not meet the standard of the law,” said Monique Goyens, BEUC’s director general. “This is very concerning. It is key that enforcement authorities take a close look at this.”

Impact on Email marketing

Email marketing software company MailChimp (2017):

The scope of the GDPR is very broad. The GDPR will affect (1) all organizations established in the EU, and (2) all organizations involved in processing personal data of EU citizens. The latter is the GDPR’s introduction of the principle of “extraterritoriality”; meaning, the GDPR will apply to any organization processing personal data of EU citizens—regardless of where it is established, and regardless of where its processing activities take place. This means the GDPR could apply to any organization anywhere in the world, and all organizations should perform an analysis to determine whether or not they are processing the personal data of EU citizens. The GDPR also applies across all industries and sectors…… relevant to MailChimp…

 

…..Expansion of scope; definitions of personal and sensitive data; individual rights: EU citizens will have several important new rights under the GDPR, including the right to be forgotten, the right to object, the right to rectification, the right of access, and the right of portability and stricter processing requirements’

 

However, the most significant issue are the stricter consent requirements:

Stricter consent requirements

Consent is one of the fundamental aspects of the GDPR, and organizations must ensure that consent is obtained in accordance with the GDPR’s strict new requirements. You will need to obtain consent from your subscribers and contacts for every usage of their personal data, unless you can rely on a separate legal basis, such as those found in number 5 below. The surest route to compliance is to obtain explicit consent. Keep in mind that:

1 Consent must be specific to distinct purposes.
2 Silence, pre-ticked boxes or inactivity does not constitute consent; data subjects must
explicitly opt-in to the storage, use and management of their personal data.
3 Separate consent must be obtained for different processing activities, which means
you must be clear about how the data will be used when you obtain consent. (MailChimp 2017).

Consent would appear to be both central to compliance and rights of privacy yet problematic for much existing practice in ‘marketing’.

Best Practice Marketing

Meanwhile in Australia Hanson (2018) argues in ‘Mumbrella’ that it’s best practice for both business and customers:

For Australian businesses that want to better serve their customers, the GDPR signals the end of activities that marketers should have abandoned long ago. This means that it’s no longer good enough to buy a mailing list, nor is it appropriate to send cold-call emails or, heaven forbid, actually send spam.

Under the new rules, customers have to explicitly opt-in to getting your communications. In the old days, it was fine to pre-tick boxes on a web form allowing you to send a customer marketing emails. Now you can’t do that. Instead, customers have to give consent to you communicating with them, and that consent needs to be clear, in plain English, as well as informed, specific, unambiguous and revocable.

How to implement GDPR?

What does this mean for marketing in a digital environment or system? According to the Digital Marketing Institute (2018):

Step 1. Get your privacy policy page up to scratch

Step 2. Audit your current databases for opt-in consent

Step 3. Re-opt-in campaigns for current databases

Step 4. Create a process for opt-in consent

Step 5. Get the sales team on board

Step 6. Review third-parties who have access to your databases

Step 7. Have a streamlined process for information requests

Step 8. Prepare for a security breach.

 

In the short term the direct impact is neither selling nor buying of client email lists, but clear or voluntary consent or opting-in, through organic collection of prospective and existing clients’ details, how?

Using digital marketing techniques for organic inbound SEO search engine optimisation traffic as not just strategy but a living system to attract prospective clients over time. This will ensure compliance and allow prospective clients to opt-in voluntarily for newsletters, follow up etc. with the peace of mind their data will be private and not be shared.

However, organic inbound SEO requires cooperation and input across departments to share inter disciplinary expertise whether strategic management, IT, legal, finance, logistics, marketing, communications and importantly, customers or clients.

 

Reference List:

Digital Marketing Institute, 2018, ‘Trends & Insights: The Definitive GDPR Checklist for Marketers’, 5 April, viewed 7 July 2018, < https://digitalmarketinginstitute.com/en-au/blog/05-04-2018-the-definitive-gdpr-checklist-for-marketers >

European Commission, 2018, ‘Data protection in the EU’, viewed 7 July 2018, < https://ec.europa.eu/info/law/law-topic/data-protection/data-protection-eu_en >

Hanson, G 2018, GDPR is a great thing for Aussie marketers, Blog, 13 June, viewed 7 July 2018, < https://mumbrella.com.au/gdpr-is-a-great-thing-for-aussie-marketers-522988 >

Hern, A 2018, ‘Privacy policies of tech giants ‘still not GDPR-compliant’’, The Guardian, 5 July, viewed 7 July 2018, < https://www.theguardian.com/technology/2018/jul/05/privacy-policies-facebook-amazon-google-not-gdpr-compliant >

MailChimp, 2017, Getting ready for the GDPR, MailChimp Blog, 9 Oct 2017, viewed 7 July 2018, < https://blog.mailchimp.com/getting-ready-for-the-gdpr/ >

OAIC Office of the Australian Information Commissioner, 2018, ‘Privacy business resource 21: Australian businesses and the EU General Data Protection Regulation’  <  https://www.oaic.gov.au/agencies-and-organisations/business-resources/privacy-business-resource-21-australian-businesses-and-the-eu-general-data-protection-regulation > 7 July 2018.

Trunomi, 2018, ‘EU GDPR key changes’, viewed 7 July 2018, < https://www.eugdpr.org/key-changes.html >

Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

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Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

 

Potential respondents must have the ethics of research explained before any interview or feedback, not only verbally at start of an interview or related interaction, but inclusion on a briefing document explaining study and research, storage of data, along with ethics.

Focus Group Interviews

 

Focus interviews, individual or via a group, based on psychoanalysis, can be very adaptable, allow expression of body language, in addition to concept checking or informal communication which would be precluded by the written form.  However, there are disadvantages, interviews can be very time consuming to conduct, transcribe, code and analyse when using open questions to elicit perceptions, attitudes and experience of the research area, plus they can be subjective or prone to bias.  On the other hand, they are useful to explore same perceptions etc., then importantly, used to inform a valid survey or data collection instrument or further research (Bell, 2005).

 

Types of interview include structured e.g. answering survey face to face, semi-structured and unstructured, the latter allows good quality data to be offered.  The unstructured interview can offer an opportunity for an industry person to explain and elaborate on issues that have emerged organically, that would have otherwise remained unknown and ignored (Ibid.).

 

Focus Group Interview Feedback Respondents

 

The ‘Focus Respondents’ for this research study included two former international students now professionals with digital literacy, two international education marketing (and admissions) managers for large multinational education providers and two more senior ‘Focus Respondents’ who manage within international education, but without formal marketing background.

 

‘Focus Respondents’ were asked open questions based upon the literature and round the information search process with any critical issues, key words, processes or phenomenon to be expressed, not in long narrative for full transcription, but abbreviated for notes and action coding.

 

It was explained to focus respondents, to give them structure or context, that the general focus was decision making behaviour process, represented by a five-stage model:

 

Purchase Decision Making Model

 

Five Stage Purchase Decision Behaviour Model or Process (simplified)

  • Recognition of Need
  • Information Search
  • Evaluation of Alternatives
  • Purchase Decision
  • Post Purchase Behaviour

(Kotler & Keller, 2012).

 

From same focus interviews regarding information search or discovery process, the research elicited factors or latent variables, then quantified by survey to analyse for significance of these factors in ‘optimal marketing and communications’.  These factors and construct can then be used to develop an information seeking construct and a useful template for industry.

Next step is to deliver survey to a hopefully significant sample population to then ground any marketing strategy development.

 

Reference List:

 

Bell, J. (2005) Doing Your Research Project. (4th Ed.). Maidenhead: Open University Press.

 

Kotler, P. & Keller, K. (2012) Marketing Management. (14th Ed.) Upper Saddle River: Pearson Education – Prentice Hall.