Page 151 - MYM 2015

allows more ef cient competitors to seize a position in the marketplace.
In these digital distribution frameworks, money is no longer necessarily the principal medium of exchange. In the entertainment industry, for example, photos, music, and video clips are the main commodities in a“sharing economy” where the objective is to drive user interactivity build social consumer advocacy. This sharing economy features an exchange of value without any direct monetary gain.
Rede ning “Place”
receives the goods
and services (i.e. a bricks and mortar store) to an online/ mobile site, often accessed by way of a smartphone, tablet, or smart TV. The Internet cloud, social media, and mobile technology have transformed the traditional physical (and often by extension, local) notion of Place
to one of innumerable digital distribution points virtually anywhere on the globe.
• lowers the price of product and services, and • improves competitive advantage.
No Room for (Digital) Laggards
If your organization is a “digital laggard” (i.e. is not responding to need for a new business model), you may ultimately face a fate similar to Blockbuster, a company that fell victim to digitally astute Net ix’s powerful, customized digital recommendation engine and digital distribution model—advancements which ultimately put Blockbuster’s outmoded, bricks-and-mortar-dependent model out of business.
The traditional 4th P in the 4P’s of marketing—Place— has been transformed
from the location
where the consumer
What’s the lesson
here? Companies must anticipate the changes digital technology brings, and be agile enough to adjust their business models to re ect new digital channels and ef ciencies, or lose competitive advantage— or even face outright extinction.
In addition, the availability of comprehensive sources of customer data (Big Data) allows marketers to improve segmentation and sharpen messaging in order to re ne sales and marketing strategies and enhance the
Are you prepared for more ef cient, customer-centric companies to enter (and eventually dominate) your market, fueled by novel digital distribution models?
This has changed
the sales process, chie y by rede ning who or what (content) interfaces with the consumer before they consider their purchase, and who manages the customer relationship after purchase. Moreover, this is all accomplished digitally, which means the costs of delivering to the consumer and maintaining ongoing contact can be accomplished at a fraction of previous costs as ef ciencies increase, improving competitive advantage. Therefore, the price the consumer pays for a given product or service can vary depending on the level of digital integration on the part of the company.
In summary, digital technology
customer experience.
• • •
changes modes and scheduling of distribution, increases efficiencies and decreases costs, enhances the speed of delivery,
Digital transformation has enabled companies in a variety of industries to be more responsive to the changing marketplace and to adopt digital distribution models that increase operational ef ciency and customer-centricity. Following are three examples.
1. Insurance
Technology is changing the way insurers and consumers interact, says Swiss Re’s latest sigma study, “Digital distribution in insurance: a quiet revolution.” Based on extensive analysis of research material from different countries, the study shows how the Internet and mobile devices are empowering consumers in the insurance industry. Today, people can search, review, and purchase
your
mind I151
marketing