Saturday, 19 April 2014

Product and Marketing from a CDJ point of view








Purpose of this blog

A 101 for budding marketers. I have tried to give a broad overall overview of the various digital marketing channels vis-à-vis the CDJ. It is important to understand that Marketing isn’t a soloed arm. Marketing isn’t just supposed to ‘get the word out there’ and ‘get traffic’. Yes these are the most important objectives from the top-of-the-funnel viewpoint, however if not done properly the final ROI will still not make sense. In fact in the world today for marketing and product need to be in sync more then ever before. Your Product is also your marketing tool and Your Marketing markets your product.

In fact marketing encompasses all verticals of a business. Customer Service is also good marketing since these customers then advocate your business and get you more customers. All possible touch points a customer has with your business creates a brand perception and that perception then becomes one of the major determining forces for your business success.

With that perspective in mind allow me to take you through the chart.


Top of the chart is Consider:

Consider basically means awareness. Getting the word out. Do people even know you exist?
That happens through 2 mediums:
1.     Paid Media: I am sure you are familiar to the term by now! J It is what it sounds like. You can pay to get your articles publishes in papers, buy billboard space, tv Ads, radio slots, display ads (site ads, Facebook ads)
2.     Owned Media: Your Facebook page, Twitter, Blog where you post good relevant content and people discover your product.
3.    Email Marketing: Ideally should be under Paid Media if you are buying a bulk database. Considerably cheaper then ‘Paid media’ but involves much more work.


Next is Evaluate Business

Consider an online business say e-commerce. You get to know a new e-commerce store from say a display ad. First we need to know if this site can even be relied upon. Will they even deliver the right product? How much time will they take to deliver? How is the support system? It is secure and all right?
This part of evaluation is to ensure you can Trust the brand.

You want to know how many other people trust this brand. Are the reviews very good? Do their products last long? Do they keep their money return promise? This takes time. It is hard work. Consider Flipkart. Primarily, the biggest USP that got it this far is Trust. I trust the brand to get me my stuff in time and I trust that I will get good service if there is a problem. There are other sites too where they sell the same products, some for cheaper. But I will need time to evaluate and know if I can trust them.

Content marketing can come in really handy here. Positive articles from industry experts, good reviews on other sites, good blog pieces give me confidence. Alternatively you can straight away check the site and see who the entrepreneurs are behind this company. Or you might just love the design and content of the site and decide you want to consider them for business. A good example will be www.donebynone.com. Check out their Facebook page and the fancy names they give to their merchandize or the way they showcase their products or the overall design. The user naturally feels welcomed.


Evaluate Merchandize

In this part a user evaluates the final merchandize. The quality and pricing are under the scanner now. Too pricey for its worth and the buck stops there. Sometimes the user likes too many things and cannot decide what to buy eventually not buying anything. Or might just not find the exact merchandize they wanted to buy. Both these problems can be tackled to at least extent.

‘Personalization’ / smart search allows the user reach their requirements quickly. Too many likes on a particular SKU for a user is like a crowd-sourced second opinion.

Or make a personal profile page of each user where all the favorite(d) items are stacked and make this page easily shareable through email or social media. A user can take personal opinion from someone they generally go shopping with or showcase it to the world. Either way, positive responses will propel the user to buy. Also, it brings awareness of your business and merchandize/ services to new people.

Now, lets say a user decides to buy ‘black loafers’ and searches the same on google.com. Your position on Google serps is obviously critical (you want to be in the first 3- eats up 40% of all destination pages) and that too depends on various factors related to your product (Title, URL structure, H1 tag, merchandize related content, user behavior on the site etc.)

Like I said, Product-Marketing integration goes much deeper then most people like to accept.


Evaluate Need-Value Prop-Impulse

A user generally makes the buying decision when there is a need or if the value prop is too good to let go leading to impulse shopping. Of course you need to let the people know about the awesome value prop you are offering. Hence, the display ads with 40-90% discount. Businesses in India often tend to rely on discounts as a strong value prop to drive sales. Especially in the apparel retail industry discounts work wonders! Ask yourself if you really needed to buy all the items on your previous shopping list.

The most important job of any marketer is to know his audience.


Buy-Enjoy-Advocate Cycle

If the overall experience is good- promised delivery time and expected product quality- boosts the confidence of the customer to increase the order value for next time and he/she will also advocate your product. They will tell their friends and get you new customers for free. This part of the traffic coming through peer-to-peer networking is referred to as coming from ‘ Earned Media’. You earned this referral.
Interestingly new users coming through ‘Earned Media’ have a much smaller and faster buying cycle. They already trust your company. As soon as there is a need or whenever you throw a great deal, this new referral user is likely to make a purchase. So, it’s important that your ‘Earned Media’ is amplified.

Make it very easy for your users to express their satisfaction, may be incentivize positive feedback? Make a leader-board of your most loyal customers. Give them badges and special discounts and privileges. Talk to them, listen to their problems, and solve them earnestly.


Popular Marketing Channels

The use of all these channels obviously varies wrt the nature of the business.

SEM & SEO- Conversion rates are higher since the need is already established. If trust for your business is established or if your industry is not monopolistic this gives a faster conversion cycle since it gets a user with established need directly to the page he wants to see.

Email Marketing- Create good Engagement system if email is acquired from the site. Works great to create impulsive purchases. If buying a database, can use for branding purposes also. One of the cheapest forms of customer acquisition. 

Re-Targeting- Ever noticed display ads of a particular site you just visited follow you all over the web. Thats site re targeting. Used to re-engage the user and incite impulse buying and awareness of new launches/ campaigns. 

Affiliate Marketing- Make channel partners and work on CPO basis. Meaning you pay your affiliate partner only if there is a final sale through their traffic sources. Works as a good hedge. 


Content Marketing- Social media, blogs, PR- Useful at all levels of decision making.


Concluding, I will just say that before running any campaign, don't just think of your business and profit centers. Think from a users point of view. More chances you will actually hit that top/ bottom line number.