Brand Trust – Social Media – Digital Marketing – Personal Customer Data

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How can trust in brands be developed and maintained in an age of digital marketing, speed, mistrust and social media?

This article first appeared in The Australian on 15th February 2019, then via KPMG NewsRoom.

There are issues in trust round politics and marketing.

Brand Trust in Digital Times (Image copyright Pexels)

Brand power in the age of declining trust

Edelman’s annual Trust Barometer report in 2017 carried a headline “Trust is in crisis around the world”. A KPMG report last year found that “trust has declined in almost every major economy and many developing ones”. In a CNN interview recently, Salesforce’s founder and CEO Marc Benioff argued that “companies that are struggling today are struggling because of a crisis with trust”.

There seems no end to the brands, organisations and leaders that have lost the public’s trust. There has been a royal commission into our banks, multiple questions over Facebook’s use of personal data, cheating cricketers, fake news, church leaders charged, and political parties bickering among themselves.

It is hard to believe that some brands and organisations have turned a blind eye to building trust with customers over the past decade. Trust is the basis of all relationships, gained slowly like drops of rain but lost in buckets. It is fundamental to business, symbolised in a handshake and eye-to-eye contact. ……These brands meet the “trust” checklist in the KPMG report – standing for something more than profit; demonstrably acting in the customers’ best interest; doing what you say you will; keeping customers informed; and being competent and likeable.

There is no doubt that brand trust is more complex in a digital world, where social media and data personalisation have enabled brands to act as if they are talking to you in person. Combine that with the exponential growth of individuals’ data that can be captured; digital marketplaces; smartphones; voice technology such as Google Home and Alexa; and the algorithms and deep learning of artificial intelligence, and there are far more opportunities to get brand trust wrong. This is especially so when trust is measured at lightning speed and some decisions around brands are being made by machines acting like humans.

Data became the hottest brand trust issue last year. The biggest data breach involved the Marriott International hotel chain and had an impact on up to 383 million people on the Starwood booking database. This included more than five million unencrypted passport numbers. Facebook had multiple issues, the most discussed being Cambridge Analytica’s access to Facebook users’ data. This data was used to persuade voters to change their opinions in the last US presidential election.

Consumers started to question the trust they had in these brands: one US survey showed 71 percent of people were worried about how brands collected and used their personal data. …… Marketers also had their doubts after YouTube posted ads that appeared alongside offensive videos, leading to a number of companies and their media agencies withdrawing advertising from YouTube for a period.

In the past five years, some of Australia’s biggest companies have rushed to establish or buy into data businesses that can offer insights into the purchasing behaviour of their customers and also use that information to improve their marketing communications……

Some companies have commercialised this data by selling it to outside organisations that match it with their customer profiles, adding to the knowledge they have on their customers. Some have questioned the ethics of this, even if it is anonymous; others ask who actually owns the data – the individual or the companies?

Trust around data relies on the fundamentals: common sense says that being a friendly and helpful neighbour is better for a long-term relationship than being annoying or remote. The personal customer data a business holds needs to be treated in the same way. In a business environment where consumers have more choice than ever, as well as more transparency and lower barriers to switching brands, boards, CEOs and marketers cannot ignore the need to invest in brand trust.

 

For more blogs and articles about digital marketing, social media marketing and consumer behaviour click through.

 

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Impact of Digital on Marketing Industry Employee Skills

Digital and any new technology can be disruptive and requires changes in thinking, working, learning, education and training; includes marketing and IT.  However, like computer science, education and even job descriptions do not keep pace with technological change while many working successfully in IT or marketing do not possess related university degree, if at all.  Many are educated in other or similar disciplines e.g. engineering, or self-taught through personal or business need, and industry training or certification is more important than the degree (like CPA in accounting), supported by outcomes.

Following is paid content (marketing) from Digital Essentials on Mumbrella explaining how digital has impacted the marketing industry:

Marketing jobs are radically different in 2019 – but some employees can’t keep up

A revolution in how we consume media has turned advertising on its head, but recruits of all levels aren’t being trained in essential new skills.

February 4, 2019 7:30

Keeley Pope understands better than most how jobs in Australia’s media and marketing have changed over the last decade. A recruiter with 25 years experience, she deals first-hand with exasperated employers who require new starters to have mastered a breathless list of digital skills. “Today, you’ve got to be able to go from editing a video one minute to analysing data the next and then briefing into a post-production house afterwards,” she says.

In fact, that’s just the start of it. Marketing roles in 2019, she explains, can also encompass social media strategy, paid content, e-commerce, app building, project management as well as skills in Photoshop, CMS and copywriting. “Even the mid-level roles are very much hands-on,” she adds. “Now, marketers are publishers in their own right, too.”

These changes are, of course, a result of how marketers and agencies have reacted to the differing ways we consume media – the decline of printed newspapers, say, or the rise of social media and TV-on-demand. The problem is many current employees have been caught cold: either forced to suddenly acquire skills they’ve never been trained for or rejected for new positions outright. “The onus is on the individual to upscale themselves….

….And all that change is affecting how businesses are marketing and growing. New research by PWC and Facebook, for instance, reveals more than a third of Australian small businesses are exporting to foreign markets, and more than a third of companies now earn international revenue within just two years of establishment.

And so brands have reacted. Digital marketing spend has grown by 13% in the last year, up to $2.24bn, with video showing the biggest leap, along with increases to display, classified and search (Google ads, basically). Meanwhile, programmatic spend in Australia has leapt to $1.7bn – a staggering increase from just $84m in 2012.

“The reality is modern market is diversifying,” says Easther. “So employees now need to know a little bit about a lot – whatever side of the fence you’re working on. So, to do marketing well, particularly in digital, you need to be able to hold a conversation, and you need to know the strategy of how all the channels work together.”….

….On Easther’s course, he finds his students range from those starting out in creative agencies to senior marketing directors working client side and even those in media sales. “Some have learned digital from a few different sources and they come to formalise their learning,” he says. “While others have deep knowledge in one area but want to be more versatile. They might be a social specialist, say, but when they have a meeting to discuss programmatic, they wish they could contribute more.”’

For more articles and blogs about digital marketing, digital marketing lecturer and digital or e-consumer behaviour click through.

 

Digital Technology Readiness or Disruption – Australia

Following is a precis of an article from Business Insider Australia based upon presentation by former New Corp Australia Head Mr. Kim Williams about digital technology, disruption, literacy, innovation and opportunities.

KIM WILLIAMS: Why Australia still isn’t ready for the digital era

Digital technology will impact society, organisations, government, business and people.

Ready for Digital Technology Disruption? (Image copyright Pexels)

SARAH KIMMORLEY MAY 18, 2015, 1:11 PM

‘Former News Corp Australia chief executive Kim Williams says Australia “is not managing the change at all well” as digital disruption upends the global economy.

Speaking today at digital disruption conference, Daze of Disruption, Williams, now the commissioner of the Australian Football League, spoke about how companies must understand digital technologies in order to navigate their way through the era successfully.

“The opportunities will be infinitely larger and more interesting… [but] the journey is still in its infancy,” Williams said.

“[New digital technologies] will result in reductions of cost, new-found wonders in efficiencies of operations and a wealth of new possibilities for the quality of life.

“We’re up for a fascinating ride.”

 

Here are some of his predictions for businesses can expect:

 

  • Those who don’t innovate will fail.
  • The transfer of power from business to consumers will accelerate.
  • Technology is going to become a genetic extension of our beings.
  • Mobile is the future.
  • A dark age is coming (for those locked out).
  • Life will consist of a series of interconnected, virtual systems.
  • Social media is the key to engaging the next generation.
  • We’re all going to live longer and better.
  • Roads will become redundant.’

 

Much of the above is already apparent in media, entertainment, education, digital marketing, social networking, e-commerce, business, government and many services.

For more articles and blogs about digital technology related click through.

 

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;

 

 

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.