1. Digital Marketing Class 3: Branding Online
Instructor: Detlev Zwick, Ph.D. Web Site:
Digital Marketing Class 3: Branding Online

2. Re-Visit: Consumer Behavior Online
Consumers suffer from Attention Deficit Disorder
Consumers like to talk
Consumers like to interrupt
Consumers trust each other

3. But what else happens to consumers online?
Too many choices!
Information & cognitive overload!

4. Hyperchoice and the choice paradox
We think more choice is better, but there can be problems with excessive choice:
Ability to Choose
Satisfaction with Choice

5. The Jam Experiment A
Tasting booth for unusual jams in an upscale grocery story.
A: offered 6 jams
B: offered 24 jams
What percentage of tasters later purchased one of the jams? B
Iyengar, S. & Lepper, M., 2000, When choice is demotivating: Can one desire too much of a good thing. Journal of Personality and Social Psychology, 79,

6. Choice and satisfaction
No choice can be bad. Excessive choice can also be bad. Limited choice may be best.
satisfaction
Number of choices

7. Breaking apart the choice paradox
E. Reutskaja & R. Hogarth, 2009, Satisfaction in Choice as a Function of the Number of Alternatives: When “Goods Satiate. Psychology and Marketing, 26(3),

8. So, again…
We like choice…

9. So, again…
But…

10. Where does this leave the e-marketer (e. g
Where does this leave the e-marketer (e.g. retailer, information broker, etc. ?
New Businesses and Business models
Search
Curating & subscriptions model (s- commerce)

11. Exercise Fab.com Birchbox.com Mistobox.com Quarterly.co
Analyze what these sites do?
What need(s) do they satisfy?

12. The World becomes Curated

13. Subscription Commerce and Curated Commerce
Solving the BIG CONSUMER BEHAVIOR CONTRADICTION OF E-MARKETING:
Answer: CURATORS

14. S-Commerce & Curated Experiences
Curation: simplicity, convenience, personalization and discovery.
Since 2010 there has been a rise in the number of e-sites offering handpicked item selections, usually on a subscription model that combines convenience, curation and the pleasure of being surprised and taken care of.

15. S-Commerce Curate & subscribe e-commerce sites
cater to a wide range of consumers’ needs (tea lovers, foodies, fashionistas, new parents
Subscription fees range from the US$10,000 per year for a Net-a-Porter shoe-subscription to the US$39.95 USD for ShoeDazzle and the US$10 per month charged by Birchbox.

16. Consumer behavior: Conclusion
Consumers become active
Consumer Attention becomes fragmented
Consumer Attention reaches limit
Leads to new value propositions
Curate & subscribe

17. Exercise:
Based on the benefits C&S offers, identify one additional C&S idea.

18. Brand Building Strategy in D-Marketing

19. NikeID What is going on there?
As students of marketing, what are your main take-aways from this interchange?

20. Classifying Online Advertising

21. OWNED PAID EARNED CONTENT customers prospects detractors fans
Company Web site
Blog
Support forum/community
Podcast
, text messaging
Online event
Sales promotion offers
Virtual world
Online games
Gifting
Branded mobile apps
QR codes
Location-based marketing
Social network, microblog
SEO – natural/organic
Display ads
Sponsorships
Classified ads
Product placement
Social media ads
Mobile ads
SEO: Paid search
Digital coverage from
traditional media
Viral marketing
Wikis
Ratings and reviews
Social recommendations
Social site discussion
Community discussion
Widgets & social apps
Location-based services
Collaborative content
OWNED
PAID
EARNED
CONTENT
customers
prospects
detractors
fans

22. Best and Worst Performing IMC Tactics

23. Let’s drill deeper

24. Remember? Fragmentation makes reaching
keeping the attention of your customer
ever harder.

25. Web 2.0 Communication shows two things:
Consumers love to interrupt!
Consumers love to talk!

26. Changes your Relationship
From ‘selling to customers’ to inviting & hosting guests
From ‘controller’ of communication (teller of stories) to enabler of communication (resource provider for stories told by others).

27. 2 Strategic Implications for Brand Building

28. 2 Strategic Implications for Brand Building
Encourage and Valorize Social Communicati on

29. 2 Strategic Implications for Brand Building
Brand and Market Leadership through Thought Leadership

30. 2 Strategic Implications for Brand Building
Together these mean: Inbound Marketing

31. Let’s look at Some Inbound Tools

32. We focus on:
Communities (brand, support, innovation, etc.)

33. They innovate, advocate, rejuvenate

34. Not all can have communities

35. Fournier on brand community
Business strategy
Exists to serve the people in it
Strong community = strong brand
Embrace conflict
Mass participation (not opinion leaders)
Online networks just one tool, not a community strategy
If done well, it can’t be controlled

36. We focus on:
Expert hubs

37. We focus on:
Blogs (incl. Audio, Video)

38. Let the CEO blog

39. Is there a Simple Formula to Success?

40. Turn a good story… …into a groundswell of communication and attention.
Will it blend? (youtube)
Nokia N95 (blog seedings)
Mike Pedersen (
Le Cache Premium Wine Cabinets (wine- storage.blogspot.com)

41. But also…
BearingPoint
Mike 2.0 wiki

42. INBOUND & THOUGHT LEADER TOOLS: ADOPTION BY SMALL BUSINESSES

43. Summary
It’s a Philosophy: Brand building with d-Marketing is Inbound Marketing
Customer is guest
Marketer is host & enabler
Acquisition and retention comes from authentic Thought Leadership

44. Social Media Challenge in a Commercial Market
Mitalio Software
Social Media Challenge in a Commercial Market

45. Discussion Questions
What exactly is thought leadership? Why should BPM software companies worry about achieving thought leadership in their industries?
How is thought leadership supposed to affect the performance of mitalio’s sales organization?
Now that he has a green light from the new sales VP, how should Carlos go about designing a strategy for the social media initiative?
How do you propose that Mitalio measure the ROI in social media marketing?
What social media KPI should be monitored? How should they be monitored?

46. Thought Leadership
Thought leadership is brought about by the simultaneous effort of the company and individuals within the company to understand the forces of their industry, the dynamics of competition, and the technological changes that affect the ability of customers to accomplish their goals.

47. Impact of TL
The primary impact of increased visibility should be felt in the volume and quality of leads generated, and in an improved rate of conversion of leads into transactions.

48. SM Strategy for TL? Audience Analysis
What platforms are they using? (Facebook, Twitter, Slideshare, Meetup, Flikr)
What are their preferred media for connecting online?
How do customers—buyers, users, technical people, c- level managers—interact with each other?
What do customers—buyers, users, technical people, c- level managers—want to learn?
What are the topics they are talking about?
What brands/products have they mentioned in conversations?

49. Measure ROI for TL? Developing a Presence
Social Media and Marketing Integration
Content Development
Goal Setting and Tracking
Audience Generation
Social Media Listening

50. What social media KPI to monitor?
Interactiveness
Contribution
Respectability
Engagement
Action—Results