Omnichannel & Digital Marketing
Course Introduction
Course objectives:
- From an omnichannel management perspective:
● Understand how organizations developing offline & online distribution
channels & strategies leverage value creation, market differentiation, and
competitive advantage.
● Acquire scientific view on integration relevant channel research
● Develop presentation and interactive discussion skills
- From a digital marketing perspective:
● Develop insights in e-commerce business models in our networked economy
● Understand basic technology concepts, principles of customer web interface
& effective website/app design
● Acquire an understanding of online marketing (social, mobile & local) &
communication approaches as well as metrics to measure performance
EXAM:
- 5 questions:
● 1 about the guest lectures
● 2 about the general lectures
● 2 about the papers of students
- Document with exam questions will be made available, during the exam, she
elaborates on this, based on your given answers.
,1. A Framework for Internet Marketing & E-Commerce
1.1. Evolution towards digital economy
1.1.1. Marketing management philosophies
Philosophies:
- Production efficiency: marketing handbooks about producing better, cheaper and
faster products. Marketing was really simple at that time. (60’s)
- Strategic planning: companies should be more proactive and anticipate potential
long-term issues. This resulted from the oil crisis. This became very important for the
upcoming years (even now). (70’s)
- Total quality management: because Yapan had extremely good quality products,
people wanted to do this too. (80’s)
- Values & relationships: creating value became important and also the creation of
relationships. Before this, they did not really look at loyalty marketing (now very
important). (90’s)
- Business intelligence: internet became public in 94’
- Co-creation: whatever relationship we have with customers, they actually co-create
with us. (00’s)
● Main-stream FMCG such as Coca-cola started with co-creation by involving
them more, asking their opinions, and crowdsourcing (outsourcing tasks from
the organization to customers/ stakeholders)
- Social networks: breakthrough when the iPhone was introduced
- Content Marketing: we have different types of channels (offline & online), so need to
serve content for each of them (more and more popular)
- On-demand economy: Uber, Airbnb, Poppy,...
● Uber disruptive business model? E.g. Unfair competition since the
independent drivers are not paid by Uber, Uber does not have to pay for
health insurance, training,... They do not really have control over the safety of
the passenger, and dynamic prices
- Digital transformation: went very fast because companies and organizations
needed to rely on this due to covid. This was needed to stay relevant.
● Facebook, Google, Microsoft, Amazon & Apple are the biggest winners during
the pandemic who made the digital transformation possible (tech companies)
❖ Microsoft: market leader in data storage
❖ Apple: pioneer of the smartphone/device of the 21st century
❖ Google: the worldwide leader in search engine and digital advertising
❖ Facebook: pioneer in connecting us worldwide
❖ Amazon: pioneer in radically changing our shopping experience
- Sustainable development:
● Packaging became important, the challenge of combining people, profit and
planet
● We try to take steps but current situation (war, crisis) makes it hard →SDGs
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,We are currently in ‘the perfect storm’ which means:
- A situation where all these negative things happen: war in Ukraine, high inflation,
rising prices,... However, this poses enormous opportunities (and risks and
challenges)
Types of co-creation:
Facilitator:
- Digital platform to co-create products and innovations with third party designers,
startups, and customers.
- Try to connect different stakeholders via a platform, to come up with innovative ideas
- Procter & Gamble’s Connect + Develop open innovation program nurtures
collaboration with individuals and companies globally to develop new ideas and
products.
- Eyaka: platform to connect companies with stakeholders that come up with creative
ideas
- Lego ideas: can present ideas to other customers there, and can vote on other ideas
- BMW, Dell, and IBM also have co-creator platforms
- Innocentive
SDG’s:
- 17 goals, can possess them in the three core dimensions: 3 P’. Profit, People, Planet
1.1.2. One-to-one marketing & many-to-many marketing
1. One-to-one marketing
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, The beginning of one-to-one marketing
- Thanks to the ICT, the internet,...for the 1st time from a marketing perspective we
were actually able to do micro-marketing or target
● This led to the phenomenon of Mass-customization
● This was the starting point of One-to-one Marketing
Mass-customization= Being able to target customers based on their behavior, preferences,
interests, profiles…
One-to-one Future/Marketing (Peppers & Rogers, 2001):
- First book to describe these ‘revolutionary’ concepts
● « … in which businesses would use interactive technologies and computer
databases to compete for one customer at a time, constantly trying to
strengthen their relationships with their most valuable customers »
● « … in which one-to-one marketing also involves customer complaint
handling, finance, production, delivery, and sales. … finally linking the
production back-end to the sales & marketing front-end »
- Connecting the front and the back office. What you promise via
marketing, also has consequences for the logistics, production,...This
was one of the first times that this idea was proposed. Some
companies still struggle with this.
2. Many-to-many marketing
a) One-to-many traditional mass communication: Still relevant when we talk
about advertising, typical ads: 1 message that is sent to your whole audience.
b) One-to-one internet based communication: Different messages to different
customers thanks to the internet.
c) Many-to-many Communications via the internet: This is where
we are now. We all join the internet through websites, communities,
social media…and we all make & post content. Information is
generated from multiple sources and is received by multiple
sources.
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