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;

 

 

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Digital Marketing Tutorials for Tourism and Services

Digital Marketing Tutorials and the Application of Digital Marketing

How can small or medium sized businesses take advantage of digital marketing benefits i.e. economic and effective for sustainable customer centred strategy over long term?

This is opposed to short term and one-off marketing strategy based round costly and low analytic conventional channels such as print, radio and television focused upon indirect ROI or KPIs, especially digitally literate generations?

Advantages of Digital Marketing

The advantage of keeping marketing in house and using digital versus outsourcing include:

  • Requires market research into consumer behaviour, with focus upon and directed by existing, prospective customers and stakeholders
  • Unique to your business or organisation and target market with your website as ‘shop front’ being visible online locally, regionally, nationally or globally for market reach and penetration
  • Analytically rich through variety of channels during search and purchasing process while customer feedback can confirm KPIs as valid
  • After initial front loading of technical resources, marketing content and including financial, a living system has been created which can be maintained, reviewed and adapted following the SDLC systems development life-cycle (versus one off strategy or campaigns although not precluded e.g. ‘Best Job in the World’ dependent upon social media)
  • The system can run organically through inbound digital marketing techniques attracting targeted traffic through SEO search engine optimisation and customer generated (social) media
  • Allows customer and stakeholder input, ownership to inform system and an increased likelihood of success due to authenticity and grounding, or ‘bottom up and lateral’ digital communication channels

Some years ago, the ATDW Australian Tourism Data Warehouse developed the award-winning ATDW Marketing e-Kit downloaded several hundred thousand times, especially offshore.  The kit summarised below is pitched at sole, small or medium businesses who cannot and should not commission large advertising or marketing companies to promote their business, and do not require high level expertise.  Further, larger marketing bodies e.g. Tourism Australia, should have no need to commission global advertising giants for marketing strategy when they have a highly visible shopfront or website already?

 

  1. Who is this document designed to assist?

These ATDW tutorials have been put together to help small and medium Australian tourism operators successfully market their business online. If you don’t have a website for your business or have one that is not performing to your or your customer’s expectations, these tutorials are for you.

Further, the same can be replicated across other sectors or industries whether goods or services, the principles of good (digital) marketing strategy are the same.

  1. Roadmap to success

What do I need to do and in what order? Each tutorial can be read independently and no
technological background is required to understand their content.
You will find a list of all the tutorials organised in different sections on the following:

a) The basics
b) Website
c) SEO Search Engine Optimisation
d) e-Marketing
e) Online booking e-Commerce
f) Analysis and statistics
g) Online distribution
h) Social media

 

  1. Why the Internet?

The Internet is a network of computer networks, which anyone can access and participate in using a web-enabled computer. Users turn to the Internet to search for information and interact with other users such as friends, peers and communities. It comes as no surprise that travellers use the “net” extensively to plan and organise their trip. Latest international research shows that more than 80% of travellers do so.
This signifies that- as a tourism business – you need to move your Internet strategy to the centre of your business model. Having a website that sits “on the side”, a Facebook page that isn’t managed and no social media strategy will not allow you to compete in the online world.

Business and organisations need to move beyond the notion of digital (channels) being an added budgetary item for any advertising or marketing spend and leverage their own customer base for feedback, generation of marketing content, transmission or sharing and visibility.

For more blog and articles related to services and digital marketing click through.

International Education Marketing – Conventional versus Digital

Traditional International Education Marketing

 

There have been criticisms for some decades regarding the effectiveness of universities’ and related education institutions’ international marketing and their ability to identity what the market needs and communicating effectively (Nicholls et al., 1995).

 

Anecdotal complaints from within larger institutions, whether faculty or administration, is that even with high enrolment numbers, there is little understanding of ‘how’ students came to be enrolled, let alone those prospective students who did not, with indirect or invalid KPIs (key performance indicators).

 

This is compounded further in large entities by organisational structures on large campuses, leading to potentially sub-optimal co-ordination between international marketing, admissions, web marketing team, suppliers or agents and students; resulting in silos impacting analysis of communication and information sharing.

International Students - Digital Marketing

International Education Digital Marketing

(Image copyright Pexels)

Conventional Marketing or Sales?

 

Marketing strategy emerging in the 1980s relied upon travel to physical recruitment events, distribution of brochures or ‘marketing materials’ by hand, appointment of agents; mostly short-term sales and ROI model or basic ‘4Ps’.

 

This latter financial and physical ROI method of evaluation e.g. numbers of brochures distributed, and students recruited, may not be highlighting the important factors or process leading to enrolments, or missing many factors altogether e.g. WOM (word of mouth)?

 

The assumed positive outcomes from such strategies may be correlated with other factors such as ongoing WOM with peers, suitable course availability or online visibility.  Previous research had already highlighted critical factors of significance including need for innovation, quality staff and image, service culture, good use of information technology (IT), healthy financials, technical excellence and broad range of courses (Mazzarol, 1998). There is focus upon internal human and technical resource factors required as inputs for good marketing and communication, but not behaviour of those seeking relevant information.

 

Meanwhile, over ten years ago formal research recognised and confirmed in decision making of a student sample, it’s course first, over reputation and destination, along with creating awareness through search engine optimised (SEO) visible websites to be found directly and easily (Gomes & Murphy, 2003).

 

This latter study is one of the few formal research articles related to international student purchasing behaviour available in the public domain, yet emphasising the importance of SEO and digital over ten years ago.  However, Australia’s pre-eminent and university owned student marketing and recruitment vehicle IDP, like most and according to formal job description, does not view analysis of enrolled students or other prospective students as important or essential (IDP, 2016)?

 

There has been little if any related or formal research on how students find information except some industry groups, mostly in Europe about ‘how’ prospective students behave and interact.

 

For more articles or blogs on education, training, marketing and society, click through to Academia profile of Andrew J. Smith.

Introduction to Digital or e-Marketing for Small Business – Instructional Design

Topic:  Introduction to Digital or e-Marketing

for Small Business

 

Goal:

Small business owners and/or managers understand the concepts, resources and actions for a digital or e-marketing strategy.

Subject Matter Expert and/or Target Market:

Have the SME covered personally, however I would potentially approach a local business chamber of commerce looking to support local businesses in their marketing and sales.  It could also target a specific sector, like has already been done below, i.e. travel and tourism, or international education sector.

 

Rationale:

Worked in education and training small business related to study abroad in Australia developing a digital marketing strategy covering Central Europe, Turkey, UK and Australia; conventional marketing was too expensive, not transparent and ineffective.

Self-taught using available online resources, became familiar with many techniques and actions, with formalisation of learning through recent MBA course subject ‘e-Marketing’.

In my professional experience, in addition to state university and vocation school marketing managers, many small private colleges precluded any effective digital marketing strategy in favour of expensive conventional advertising and promotion via travel to one off events for international student recruitment; not financially viable in new markets nor medium term market development.

Generally Australia has low very digital literacy amongst managers and owners, including small business, due to legacy industries preferring existing processes, sub-optimal education curricula, demand for immediate simple solutions and lack of innovation.

However, the travel and tourism industry, with state agency support, have had access for over 10 years to an e-Marketing kit, designed for small travel operators to leverage their marketing and sales digitally, both locally in Australia and internationally with global network; it’s been quite successful as world’s best practice.

The advantage is that small businesses with good digital strategy can increase their target market, analyse well, work with their and gain insight into their own customer base and have more significant profile than physically larger organisations.

 

Content Delivery &/or Presentation:

Can be introduced, presented, learnt and assessed via basic understandable steps, requiring participants to bridge differences between conventional marketing or sales, with digital.

 

 The design would include:

 

  1. What is marketing? How do your customers find you? What do they say about you?
  2. Website appearance, design and management and content management systems (CMS)
  3. Social Media how does it work? Which blog and social media?
  4. SEO/SEM How to reach new audiences and markets?
  5. How to evaluate any strategy or system?

 

Teaching and learning resources would include examples of good (and bad) practice via following or analysing a business from its website (social media, blogs, customer feedback etc.), feedback from participants relating to their own business examples.

This should be leading to them being able to assess needs, develop strategy, implement and evaluate, continually.

Outcomes are assessed by learner input, producing a strategy or approach, resources and media e.g. how to create a Facebook page, open a Twitter account, find useful resources etc.; using own PC, laptop, tablet or mobile.

After this overview, e.g. even presenting to actual target audience, could lead to being commissioned for more of the same, and higher-level training courses.