Marketing in the Digital World
MN7032SR The new Customer Path: Understanding how people buy
Module Overview
1. Introduction
2. The Global Marketplace
3. Segmentation, Targeting,
Positioning
(Connected consumers )
4. Developing Value
5.Communicating Value
6.Pricing Value
7. Delivering Value
(Channelnomics)
8. Market Entry
Strategies
9. International Sales (Producrts v Services ) B2C &
B2B
10. Marketing and
the impact of
Digital
11. The New
Customer Path
12. Summary & Planning
Application
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THE NEW CUSTOMER PATH
The Future of Marketing. (n.d.). PPT. https://www.slideshare.net/Myanmar_B2B_Management_Magazine/the-future-of-marketing-83165065
From A I D A to A A A A
Awareness
Interest
Desire
Action
Aware
Attitude
Act
Act Again
By Elmo Lewis
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By Derek Rucker
Interest & Desire Consolidated
Aware Attitude Act
Act Again
This, more recent, framework aims to :
Track Post Purchase behaviour
Measure customer retention
Put the action of repurchase as a strong proxy from customer loyalty
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PRIMARILY A PERSONAL PATH
Funnel like process :
Learn about the brand / product
Like or dislike (attitude)
Decide to purchase or not
Decide whether a repeat purchase is
worth it
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Number of customers decline in each stage
TRADITIONAL INFLUENCES ON CUSTOMERS’ DECISION MAKING
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It is known that the brand / products / services people recommend are less that those they buy / use, which in turn is less than what people use.
Major influences on decision making come from Touchpoints :
Aware Phase
TV (adverts and placements)
Press adverts and advertorials
Act Phase
Salesperson
Act Again Phase
Customer own experience and attitude
ENTER THE ERA OF CONNECTIVITY
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The new customer path…
Initial Appeal influenced by the community
Seemingly personal decisions are essentially socially based
Loyalty is now defined by the willingness to advocate a brand as buying cycles can be longer
Brands, products and services are being discussed, evaluated and
researched by …Netizens
The advent of (unbiased ?) Customer Fora
User Reviews / Experiences
What arises is the need for a new Customer Path…
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THE SHIFTING CUSTOMER PATH IN A CONNECTED WORLD
Aware
Appeal
Ask
Act
Advocate
3 Shifts…
Aware
Appeal
Ask
Act
Advocate
Shift #1
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Influences by the community surrounding the customer, to determine the final attitude
Aware
Appeal
Ask
Act
Advocate
Customers connect with each other building Ask & Advocate Relationships. The level of perceived bias determines the strength of the appeal
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Shift #2
Aware
Appeal
Ask
Act
Advocate
Loyalty ultimately defined as the willingness to advocate a brand / product
/ service
Numerous
Consumer Fora
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Shift #3
AWARE & APPEAL PHASE
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Passive exposure to long list of products and services From past experiences, marketing comms, advocacy etc
The gateway to the entire customer path !
Aware of several products, service and brands, customers are attracted to a short list (either through their short term memory or amplifying long term memory)
Memorable brands (with WOW factors) are more likely to be on and go higher on the short list (even prior to evaluation)
Brand appeal stronger on commoditised products
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Curiosity and possible interest lead to active research of the most appealing brands
Media, friends, family, products themselves…
They then look at reviews, contact call centres, compare prices and possibly try out products capitalising on 14/30 day hassle free returns etc.
Further complicated by the integration of :
Digital and Physical
Where customers browse through products in store whilst also search for information on their mobiles
Multiple channels used making brand presence in key (targeted) media essential
Ask Phase
Ask Phase II
Customer Path changes :
From Individual to Social !
Decisions made on customer take aways from conversations with
others.
Brand appeal needs confirmation to allow the path to continue
Triggering the right amount of curiosity is key (too little and is forgotten,
too much and is confusing)
If convinced and reassured customers may decide to …
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Act Phase
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Desired Act actions are not limited to Purchase
Post Purchase (Cognitive dissonance) customers interact more deeply
Consumption, Usage shared
Products must try to engage to create a total ownership experience
that is : Memorable and Positive
Problems and complaints are expected. It is the way that they are handled that make the difference.
ADVOCATE PHASE
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Over time customers may develop a sense of strong affinity and loyalty to the brand / product / service
Active advocates readily and spontaneously recommend
They tell positive stories and become evangelists
Yet most loyal advocates are passive and dormant – they need to be
prompted
Advocates take risks to recommend. They are more likely to buy more in the
STAGES NOT STRAIGHTFORWARD
Stages can be skipped (customers with attention deficit)
Recommendations can help alter course
Can skip Appeal and go from Aware to Ask
Loyal advocates may not be actual buyers. Tesla benefits
from strong advocacy from non-buyers.
Consumers skip Act and go directly to Advocate
The Customer Path can therefore Expand or narrow
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MAPPING THE CUSTOMER PATH
Advocate
Act
Ask
Appeal
Aware
I
Recommend
I am Buying
I am
Convinced
I like
I know
Touchpoints
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From Awareness to Advocacy
Our ultimate goal …
Influence by a combination of : Own Influence
Others Influence
Outer Influence
The O Zone
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OTHER
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The O zone across the
Customer Path
OWN
OTHER
ACT
ASK
APPEAL
OUTER
AWARE
ADVOCATE
Action Time
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Select a brand / product / service you are familiar with:
How can your brand / product / service identify and leverage the most critical touchpoints in the customer path ??
Due to the proliferation of the internet and social media, customers are becoming more empowered.
They no longer have to call or wait for a supplier to provide information.
They can easily gain massive amounts of information and connect with other individuals like themselves directly through the internet.
A significant majority of buyers now start their buying journey online and progress well into their buying journey long before they connect with a sales person.
UNDERSTANDING HOW PEOPLE BUY
UNDERSTANDING HOW PEOPLE BUY
The 5 Stages of Consumer Buying/Decision Making Process:
Recognition of needs and wants.
Information search.
Evaluation of alternatives.
Purchasing.
Post-purchase evaluation.
RECOGNITION OF NEEDS AND WANTS:
a sale occurs when the customer finds an opportunity to solve a problem they are experiencing with a product or service.
Customers rarely purchase products and services just for the sake of buying them; they purchase things because it solves a problem and helps them reach what they want to achieve.
Make consumers aware that there is a problem worth solving, then present your products and services as an “ideal solution.”
Essentially, a potential customer will conduct their very own problem identification analysis.
UNDERSTANDING HOW PEOPLE BUY
INFORMATION SEARCH
Once a customer recognizes their problem, the search for a suitable solution begins. They look for someone to help them fix it.
To reach them at this stage, focus on creating information that the potential customer can use to make an informed decision about the products you offer.
As a marketer or business owner, this is your best opportunity to establish your brand as an industry leader or expert in the field.
At the information search stage, a consumer can search for information by talking to friends or family members, or reading reviews online.
UNDERSTANDING HOW PEOPLE BUY
EVALUATION OF ALTERNATIVES
At this stage of the consumer decision process, the consumer will probably know which product will solve their problem. Evaluation is normally done by evaluating a product against alternatives based on quality, price, popularity, and reviews.
UNDERSTANDING HOW PEOPLE BUY
PURCHASING:
This stage is when the consumer decides which product or service to buy.
The factors that affect the purchasing stage include: Need for the product, perceived benefits of the product, perceived risks of the product, ability to pay for the product, social influences that may affect the consumer’s decision.
If all goes to plan and your marketing efforts pay off, the consumer makes their final decision and purchases the product or service.
UNDERSTANDING HOW PEOPLE BUY
POST PURCHASE EVALUATION
After purchase, the customer weighs up their purchase and compare it to their overall satisfaction. This will lead to satisfaction or dissatisfaction.
When a customer is satisfied with a purchase, their actions typically reflect this satisfaction. They choose to return to the business for future transactions, recommend the company to friends or provide positive feedback
Conversely, when a customer is dissatisfied, they may: voice their complaints to the company, share their frustrations with others, refuse to do business with the company in the future or write negative reviews about the company
UNDERSTANDING HOW PEOPLE BUY
The big picture
How Do You View Salespeople?
What is your view of salespeople?
How many of you have a viewpoint that is
Positive?
Negative?
No opinion?
How many of you are interested in a sales career?
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Selling is just one of many marketing components (part of the ’P’ for ‘promotion’)
Personal selling includes
Personal communication of information
Persuasion
Helping others
Goods
Services
Ideas
What is Selling? (the characteristics)
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A Definition of Personal Selling (Futrell, 2010)
Personal Selling
Refers to the personal communications of information
To unselfishly persuade someone
To buy something – a good, service, idea, or something else – that satisfies that individual’s needs.
The Marketing & Sales Standards (UK)
To create, build and sustain mutually beneficial and profitable relationships through personal and organisational contact
Sales Key Purpose
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Dimensions of Selling
(and selling cycle)
The Marketing & Sales Standards (UK)
Sales Functions
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Refers to the sales philosophy of unselfishly treating others as you would like to be treated
Reciprocity is not expected
The Golden Rule of Personal Selling
THE ETHICAL CONTINUUM
1-Svend Hollensen (2011) A decision oriented approach. Edinburgh: Pearson.
Philanthropy
(Proactive)
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Think of Your Grandmother
Would you treat her in a selfish manner?
Would you sell her something just to make a sale?
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Everybody Sells!
Each of us develops communication techniques for trying to get our way in life
You are involved in selling when you want someone to do something
You use persuasion skills to persuade someone to act
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Salespeople serve three recipients
Themselves – In order to serve others and earn a living and keep their job
Their employers – So the companies will survive
Their customers – To fulfill needs and help organizations grow
Types of selling?
Direct selling - face to face contact with the customer.
Retail selling - products are offered through a shop
Agency selling - products and services offered on behalf of a supplier.
Telesales - products and services are sold directly on the telephone.
Door to door selling - visiting potential customers in their homes and sell to them directly.
B2B - businesses sell directly to other businesses.
Business to government selling - businesses develop solutions offered to government agencies and departments.
Mail order selling – buying from a catalogue.
Online Selling - products and services are sold directly on the internet.
Ask group to comes up with as many different types of selling as they can think of
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What are the objectives of a Salesperson? (what do they seek to achieve?)
Create new customers
Sell more to present customers
Build long-term relationships
Provide solutions to customer’s problems
Provide service to customers
Help customers resell products to their customers
Help customers use products after purchase
Build goodwill with customers
Provide company with market information
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Skills Required by Sales people
Learning conceptual/strategic skills
Example: planning
Learning human skills
Example: working with customers
Learning technical skills
Example: selling skills
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Is Selling an Art or a Science?
It is Both:
Selling takes practice, just like golf or tennis
Selling is also a science because a growing body of knowledge and objective facts describe selling
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Issues for the 21st Century
International and global selling
Cultural fluency
Language fluency
Diversity of salespeople and customers
Customer partnerships
Ethical and professional behavior
E-selling
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The sales process is a sequential series of actions:
10. Follow-up
9. Close
8. Trial close
7. Meet objections
6. Determine objections
5. Trial close
4. Presentation
Building Relationships through the Sales Process
2. Preapproach - planning
3. Approach
1. Prospecting
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Ten Important Steps in the Customer Relationship Selling Process
1. Prospecting. Locating and qualifying prospects.
2. Preapproach. Obtaining interview. Planning: determining sales call objective, developing customer profile, customer benefit program, and sales presentation strategies.
3. Approach. Meeting prospect and beginning customized sales presentation.
4. Presentation. Further uncovering needs; relating product benefits to needs using demonstration, dramatization, visuals, and proof statements.
5. Trial close. Asking prospects’ opinions during and after presentation.
6. Objections. Uncovering objections.
7. Meet objections. Satisfactorily answering objections.
8. Trial close. Asking prospect’s opinion after overcoming each objection and immediately before the close.
9. Close. Bringing prospect to the logical conclusion to buy.
10. Follow-up and service. Serving customer after the sale.
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The Sales Presentation
10-
Let’s Summarize the Presentation!
Meets
Greets
Rapport Builds
Goes through the approach (next slide)
Discusses the product
Discusses the marketing plan
Discusses the business proposition
Closes – asks for the order
10-
Approach Categories (next slide)
Opening with a statement
Opening with a demonstration
Opening with a question or questions
10-
Approach Techniques for Opening the Presentation
10-
The Approach Techniques for Each of the Four Sales Presentation Methods
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The Situation Faced Determines the Approach
Influences on the approach to use include:
Product being sold
Whether the call is a repeat call
Customer’s needs
Amount of time
Awareness of a problem
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A Popular Multiple-Question Approach Is the Spin
Remember, the product is not mentioned in SPIN
10-
Technology in the Approach
Powerful attention-grabbers
Sounds
Visuals
Touch
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Some relevant Techniques: Rephrasing Question
Is useful if you are unclear and need to clarify the meaning of something said
“Are you saying that price is the most important thing you are interested in?”
“Then what you are saying is, if I can improve the delivery time, you would be interested in buying?”
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Some relevant Techniques: The Redirect Question
Used to change the direction of the conversation – often from a negative to a positive
Imagine you walk into a prospect’s office, introduce yourself, and get this response:
“I’m sorry, but there is no use in talking. We are satisfied with our present suppliers. Thanks for coming by.”
A redirect question would be:
“Wouldn’t you agree that you continually need to find new ways to increase your company’s sales?”
Kotler's five A's of the customer path: a framework that uses five stages to map a customer's journey through the sales process.
The 5 stages allow marketing and professionals to create a map of the customer's needs and priorities during the different parts of their purchase process.
The 5 stages facilitate design practices that make the customer's purchasing process smoother and more satisfying.
Some customers might go through all five stages, some might skip certain stages
Kotler’s 5As in Marketing
Krosel, A. (2023, March 11). Kotler’s 5 A’s of Sales Marketing: Definition and Tips. indeed.com.
Kotler’s 5As in Marketing
Kotler’s 5As in Marketing
Krosel, A. (2023, March 11). Kotler’s 5 A’s of Sales Marketing: Definition and Tips. indeed.com.
Kotler’s 5As in Marketing
HOW CAN MANAGERS USE 5As TO ENHANCE MARKETING EFFORTS?
Select one stage of the customer path to improve every month or quarter.
Customize messaging for different stages
Encouraging Customers to take action / encourage advocacy:
Implement targeted email marketing campaigns to engage with customers at different stages of their customer path.
Create personalized landing pages with relevant information and incentives to encourage action e.g. points for product review
Optimize website’s user experience by making it easy for customers to find what they need and complete desired actions.
Kumar, P. (2023, August 19). Optimizing The 5As Of Marketing For Customer Journey: A Guide To The Kotler 5a Model - Wild Creek Web Studio. Wild Creek Web Studio. https://www.wildcreekstudio.com/the-5-as-of-converting-strangers-into-customers/
DIGITAL MARKETING: USING 5As STRATEGY TO PROMOTE A MOBILE APP
| STAGES | CUSTOMER TOUCHPOINT | CUSTOMER’S IMPRESSION |
| AWARENESS | Consumer gets informed about the app/brand | I am informed about the app |
| Consumer gets re-informed or recalls the app/brand | ||
| Consumer discovers the app through one or more channel(s) | ||
| APPEAL | Consumer gets interested in the app | |
| Consumer likes the products/app | ||
| ASK | Consumer approaches the brand | I like the brand idea |
| Consumer looks for online reviews and validation | ||
| Consumer tries the app/product | ||
| ACT | Consumer interacts with the pp/products/services/brand | I will make a purchase |
| Customer makes use of the content of the app | ||
| Consumer makes purchases using the app | ||
| ADVOCACY | Consumer suggests the app to others | I refer and recommend the app / brand / product |
| Consumer rates and reviews the app/brand/products on the app stores and other platforms | ||
| Consumer shares the app/brand/products in the circle |
DRIVING FROM AWARENESS TO ADVOCACY: THE O ZONE (O3)
Ultimate goal of Marketing: drive customers from awareness to advocacy .
A customer's decisions across the five A's are usually influenced by a combination of their own influence, others' influence, and outer influence i.e drive customers’ awareness to advocacy aka O Zone (O3) – own influence, other’s influence and outer influence.
Own: personal experiences and judgments
Other’s: circle of family, friends, peers or communities as word of mouth
Outer: external forces such as marketing advertisements and campaigns.
Traditional Marketing vs Digital Marketing. (n.d.). Thought Leadership. https://thoughtleadershipzen.blogspot.com/2016/05/traditional-marketing-shortcomings.html
Outer influence: originates from external sources. Initiated by brands through advertising and other marketing communications. It may also come from other customer interfaces with sales teams and customer service staff. Outer influence is controllable. Message, media, and the frequency can be planned, overall customer touchpoints can be designed but resulting customer perceptions may still vary depending on how satisfactory the experience is.
Others' influence: from the external environment. Typically from close circle of friends and family as well as word of mouth. Customers may also be influenced by conversations they heard on social networking platforms. Customers may also be influenced by communal rating systems e.g. TripAdvisor and Yelp. Others' influence is often the major driver of purchase. Essentially difficult to manage and control the outcome of others' influence as companies cannot directly control the conversation within the community
Own influence: comes from within oneself. It is a result of past experience and interaction with several brands, personal judgment and evaluation of the brands, and ultimately individual preference toward the chosen brand(s). Often, personal preference (own ) is swayed toward certain brands by word of mouth (others' ) and advertising (outer ).
In summary, 3 major sources of influence are always intertwined.
Any particular customer is usually influenced by all three types, albeit with different proportions.
DRIVING FROM AWARENESS TO ADVOCACY: THE O ZONE (O3)
DRIVING FROM AWARENESS TO ADVOCACY: THE O ZONE (O3)
Consumers are most open to influence during the Ask and Act stages.
In the Ask stage, consumers seek advice and absorb as much information as possible from others’ and outer influence with regard to a short list of brands.
The Ask stage serves as a window of opportunity for marketers to increase brand favorability.