Marketing in Digital Age Building the Right Mindset

Marketing in Digital Age

Marketing in Digital Age

Building the Right Mindset

About UsAbout Us

• Seminar Presenter• Tommy Weng (General Manager)• John Ling (Creative Director)

• Merx Motion• E-business consulting• Internet applications.

Past ClientsPast Clients

Why Merx MotionWhy Merx Motion

• Corporate e-business solutions:• Scale is too big• Too expensive to implement

• Merx Motion invested heavily on R&D to bring a fitting e-business solution for SME

Marketing in Digital Age

Marketing in Digital Age

Theories and Case Studies

Differences between Traditional and

Digital

Differences between Traditional and

DigitalIn your opinion, what separates traditional

marketing and marketing in digital age?

On-Demand MarketingOn-Demand Marketing

• What is new?• On-demand centre to store your business

information• Information stored can be retrieved anytime

through the internet

• Why is it special?• Convenience for your customers and

yourself can maximize your sales and save you cost

On-Demand MarketingOn-Demand Marketing

• What is new?• Computers can now take care of

repetitive communications requests• Why is it special?• Saves costs by answering your

customers’ questions once and for all

On-Demand MarketingOn-Demand Marketing

• What is new?• You can now track customers’ service

sessions and purchases• You can record almost anything that they do

on your on-demand marketing center

• Why is it special• Understand of what your clients need and

offer what your clients want.

On-Demand Marketing

On-Demand Marketing

Assisting Traditional Marketing

Deficiencies of Traditional Marketing

Deficiencies of Traditional Marketing

1. Aggressive yet passive2. Cannot deliver timely information3. Cost of marketing media

Aggressive yet PassiveAggressive yet Passive

• Aggressive• People can’t turn it off even if they

don’t wish to see it anymore

• Passive• People have to wait for the AD even if

they want to see it

Aggressive yet PassiveAggressive yet Passive

• On-Demand Solution• Always allow your customers to

access your information• No longer in the hands of fate

Un-Timely InformationUn-Timely Information

• After delivery, you cannot change/update the information

• After development, you cannot modify your contents

• Your customers may not receive the most timely information as a result

Un-Timely InformationUn-Timely Information

• On-Demand Solution:• Always provide the latest contents for

your customers to access• Only have to update your information

at one place

Cost of Marketing Media

Cost of Marketing Media

• Billboard Ad: $3000-$5000/month• Yellow Page : $1200/yr for smallest Ad• Flyer: 40 cents per flyer, $1200/campaign• Newspaper Ad: $1500/week• TV Commercial: $ a lot• Radio Commercial: $1/sec

$2000-$3000/campaign

• All info provided are for reference only

Cost of Marketing Media

Cost of Marketing Media

• On-Demand Solution:• Smaller ad space• Single page flyer• Minimize mailing expenses• Minimize reprints of catalogues

or brochures

On-Demand Marketing

On-Demand Marketing

Satisfying your customers in digital age

Your Customers in Digital Age

Your Customers in Digital Age

• Busy• Won’t call you during regular hours• Demand 24/7 info delivery channel

• Resourceful• Can find competitor as easy as they

find you

Your Customers in Digital Age

Your Customers in Digital Age

• Limited physical compare shopping• 70% general customers shop online

before purchasing in store (UCLA)• Internet influenced US$130 billion

offline purchases in 2003 (CrossMediaServices.com)

On-Demand Marketing

On-Demand Marketing

Advanced Applications

ATM MachinesATM Machines

• Banking Systems• Access your banking

information anywhere in the world at any time

• Transactions are recorded in real-time

ATM MachinesATM Machines

• Advanced machines combine with internet

• Internet allows the communication with servers instantly

ATM MachinesATM Machines

• Real-time teller services without the hassle

• No more line-ups for customers

• Win-win situation for both banks and customers

Cross MarketingCross Marketing

• Convenience Chain Store• Seems to know what

customers want before they walk in

• Knows exactly what else to sell when you purchase an item

Cross MarketingCross Marketing

• Advanced Point-of-Sale System• Record what people buy• Record customer age group• Record daily weather• Automatically record time,

date, and location of store

Cross MarketingCross Marketing

• Use data to:• Place products in stores• Display in-store marketing

messages• Create better service

Challenges for SMEChallenges for SME

• How to scale down what big corporations do to fit SME• Using cost-effective on-demand application• Most commonly accepted on-demand

application is the browser• Use browser to access the Internet• Website is the key for SME

SME ApplicationsSME Applications

(Solutions for Us, the Small Guys)

Own a WebsiteOwn a Website

Show of hands for business owners who own a website

What is Stopping SMEWhat is Stopping SME

• I can survive on current customers• Local businesses do not need global

exposure• Some SME may not be able to handle

more businesses

67%67%

Small businesses find that Internet has made impact on

their business(ClickZ.com)

75%75%

Business owners find Internet saving them money and time

(ClickZ.com)

Client Case StudyClient Case Study

• Client wishes to sell to Costco• Costco requires vendors to have

quality websites• Website is developed in 2 weeks• Client successfully strikes deal with

Costco and Best Buy

What is Stopping SMEWhat is Stopping SME

• Expensive development and maintenance costs• Difficult to track return on investment• Little manpower to maintain website

US$62,000,000,000,000.00

US$62,000,000,000,000.00

Online retail sales in US for the past twelve months(2003 Q3 to 2004 Q2)

Client Case StudyClient Case Study

• Client spends thousands to print catalogues with minor adjustments

• To save that cost, client asks to build an online catalogue to save costs

• By referring business buyers to their website, client saves printing costs while delivers latest information

What is Stopping SMEWhat is Stopping SME

• I would rather be in touch with customers personally• Websites may take away potential

sales I can make personally• A good sales agent may be able to

persuade customers to make a purchase

2:12:1Number of offline sales to

every online sale created by website

70%70%

General customers who research online before

purchasing in store(UCLA)

What Caused the Misconception?

What Caused the Misconception?

• SME owners normally view websites as marketing channels

• Customers may not view the website if they are not looking for it

Marketing Centre

Marketing Centre

Website is not a marketing channel; it is an on-demand

marketing centre in the digital age

On-Demand Marketing Centre

On-Demand Marketing Centre

• Similar to ATMs• Allows real-time business transactions• Can be easily accessible• Saves time and cost by delivering

right information

On-Demand Marketing Centre

On-Demand Marketing Centre

• Similar to Seven-Eleven marketing• Records transaction information• Gathers statistics of visitor traffic• Helps businesses provide

personalized cross-marketing

Building On-Demand Centre

Building On-Demand Centre

• Three areas to building the right website:• Look• Functions• Costs

LookLookWebsite design is the digital storefront of your business

Web DesignWeb Design

• Design should represent scale and industry of company

• Identity should carry from physical form to digital form

• 65% function; 35% design• Focus on building a useful website

Functions

Functions5 recommended features for SME

Content Management System

Content Management System

• Allows easy update and maintenance of website contents

• Right placement of right content is critical for on-demand service

• Content must be complete

Online CatalogueOnline Catalogue

• One of the most valuable commodities for goods industry

• Must deliver capability to:• Search• Compare• Sort

• Cuts cost of printing monthly catalogues

Reservation SystemReservation System

• Equivalent to online catalogue for service industry

• Allows convenient planning of service sessions

• Lower the number of tasks for general administration

PersonalizationPersonalization

• Consumers are used to user accounts and passwords

• Expectations are for the website to provide easy, personal access

• Personalization builds brand loyalty through convenience

• Personalization can achieve customer retention

Mailing ListMailing List

• Sending newsletters over e-mail allows customer retention and repeat/recurring purchase

• Your previous customers should be your most potential lead

• Do not send newsletters too frequently

CostsCostsRight amount of budget for the right marketing centre

Web Development CostWeb Development Cost

• Small businesses must focus on flexibility to grow and expand

• Professional web development should offer expertise insight on marketing in digital age

Promote Your Marketing Centre

Promote Your Marketing Centre

Drive customers through right marketing channels

Promotional TipsPromotional Tips

• If your business is oil reserve, your website should be your pipeline

• Put your web address on every promotional tool

• Submit to local or professional listings• Train your existing customers to use

your website

Integrate Website with Your BusinessIntegrate Website with Your Business

Provide value by integrating website with services

Client Case StudyClient Case Study

• Service industry client signed up for a website

• “Website would save costs”• 30 minute-phone calls for service

information that can be placed online

• Website saves both time and money

49%49%

Small businesses save costs through websites

Client Case StudyClient Case Study

• Client builds an online catalogue• Online catalogue is well-

maintained with complete information

• Using online catalogue functions, client uses website to check for his product information in-store

ConclusionConclusion

Explore the possibility of digital marketing

ConclusionConclusion

• Digital age enables on-demand marketing• Applications of on-demand marketing

includes ATM, and advanced POS system• Build the right marketing centre through

design, functions, and cost• Promote your website• Integrate your website with your business

Thank YouThank You

Use your website to get to where you want to be

Contact Information

Contact Information

http://www.merxmotion.com