Managing Brand thru Digital Value Chain & Targeting Consumers thru CDJ…….

The digital value chain is becoming a reality. Digital Way (S & M) offers opportunities for Automakers & NSCs along the complete value chain going far beyond traditional marketing. For example, Auto Distributors can and should use digital tools to gain insights into their product / Brand Cycle and revolutionize their retail environments / Concepts. Worldwide, there are “Virtual Showrooms” getting created, which is the future to have Better Customer Intimacy, online. Moreover, digital will play a key role in generating new leads. Clearly, leveraging digital needs to become a reality along the complete value chain, and the vast majority of OEMs / NSCs still has huge opportunities to do even more so. Ultimate goal is to “sell” the product. Even, in the western world - Digital channels dominate the purchasing “journey.” The purchasing journey for cars involves a number of different phases. From awareness to consideration to short listing to purchase to service, and ultimately, repurchase, the Consumer Decision Journey (CDJ) framework describes the way car buyers move from an initial consideration towards their final purchase. This is probably an extension to CI Framework.


While running through their journey, customers increasingly rely on digital channels, e.g., checking brands’ Web sites, reading online reviews, visiting virtual showroom / YouTube Channels and visiting social networks and community forums in the consideration phase. In Oman context too, approx. 30% buying decision are happening thru Digital Media & thanks to Arab digital media& international players those are committed to provide the information in Arabic. Increasingly awareness will help NSC (National Sales Companies) to save funds thru Virtual Events involvements. Of course there is special IT competency is needed with the fusion of funds towards a different marketing way……..but the Future Path to the Customer Intimacy cannot be ignored.

Automakers were among the first to recognize the value of an online presence, creating Web sites and car configurators to attract the mass. But in more recent years, many worldwide OEMs have fallen behind the curve when it comes to systematically reaching their customers online, instead still focusing the bulk of their marketing and managerial resources on offline marketing spending or unsystematically tapping the digital opportunities. There are country wise trends compelling the industry to sharpen its online game, and offers an integrated approach to fully leverage the opportunities of the digital age. Although in Oman, there is a sudden “well understanding” of Digital Marketing is seen, still the approach is more of conventional marketing. The ideal usages in Oman seen is of Search Engine Optimization, Social Media inclusion / Adverts, Marketing via Email, Mobile Applications, Lead Generation thru Website reach & YouTube Channel connect.

Marketers need to shift digital marketing into overdrive to enable a new, highly effective, targeted, and “real-time” approach to customers. Marketers must promote the Business, Product or Service through New Digital Marketing Way & Solutions at a very reasonable cost. Some of possible available options to create CDJ framework through Digital Value Chain are -

1. Email Marketing

2. Social Media Marketing (Face book, Twitter, LinkedIn etc)

3. SEO (Search Engine Optimization)– Both on Web Browsers or on Digital TV media

4. ROPO (Research Online, Purchase Online)

5. Influencing & dominating CDJ – The Purchase Cycle (Consumer Decision Journey)

6. “Real Time Demonstration”of Products thru Websites or Web Based Marketing Tools

7. “Virtual Car Showrooms” to create Live Experience

8. Digital Community Virals – Web Based Testimonials thru SMM Adverts

9. PPC Management (Pay Per Click)

10. InfoGraphics Marketing – Using Digital Diagrams to convey message

11. Web based Data messaging

12. YouTube Channel Connect

13. Lead Generation thru Web Research

14. Mobile Apps Development

15. Web Analytics Scanning & Auditing

And the Digital Value Chain Services list still continues……..on & on & on. 

Business websites, Mob Apps & SEO etc plays an essential role in sales, marketing and branding, it could be the first point of contact where some audience get the first impression and it is where important audience seek complete and comprehensive information about the company, products, services, policies and opportunities. A successful website or SEO shall utilize a “target audience/ messages and impression” matrix technique and. Websites, Virtual Showrooms, YouTube Channels or SMMs - These all interactive communication tool; typically it gathers (or throws) a lot of information about visitors (or Products) and their visits like visitor location, visit duration, referral, visitor device type, browsers, operating system and more. Loyalty programs, mailing lists, request forms can add remarkable value too. Don’t miss a monthly analytic report, customize it in a way that best serves your business need. I personally feel that it is the concept which sells the product, & not the media – but can we overlook this strong digital media in the current changing market place.  

Well, will it work in Oman…………..? 

Let us have a look on the Oman Net Stats : 

Internet Usage Statistics – Oman: (Reference from - http://www.internetworldstats.com/me/om.htm)
1,236,700 Internet users are on June/2012, 68.0% of the population of Oman, according to IWS.

Internet Growth and Population Statistics in Oman:

YEAR	Users	Population	% Pop.
2000	90,000	2,424,422	3.8 %
2002	180,000	2,398,545	7.5 %
2005	245,000	2,424,422	10.1 %
2008	300,000	3,311,640	9.1 %
2009	557,000	3,418,085	16.3 %
2010	1,236,700	2,967,717	41.7 %
2012	2,101,302	3,090,150	68.0 %

 Oman Telecoms Market Overview & Statistics Report (Ref : TRA Oman)
The telecoms sector in Oman is relatively undeveloped for the region and for the GDP per capita. This situation has begun to change, with the introduction of some competition in the market. Both fixed-line and mobile telecoms penetration levels were low but since the launch of second mobile operator Nawras, mobile subscriber growth has increased rapidly. Strong growth rates have also been recorded in the broadband market, from low levels, as incumbent OmanTel prepares for further competition. This report provides an overview of the telecommunications market in Oman, accompanied by relevant statistics.

 E-commerce users in Oman spent US$236 million online in 2008.That's roughly US$1494 per user on average. That seems to me a lot of money, given the level of salaries in country. So presumably one could assume that the people who spent online were from the wealthier segment of society...........Doesn’t it give a clear pass to Oman Auto NSC / Distributors to act?

Internet users: Compare Oman to other countries – Where Oman now stands approx. 68% net literate, the developed countries like Australia, US or England stand between 73 to 85% of population. It itself states that one) Oman Net literacy has grown very much in last 5 years & there is big Digital Value Chain can be created. (World Bank definition of Internet Users : Internet users are people with access to the worldwideweb or network.)

One more step ahead, Oman Forum today stream the LIVE CONFRENCING for their Agenda / discussion thru Web Streaming (Reference / Visit : http://sowlef.com/live)

 Above Oman Telecom / Internet data proves that there is a lot space for the Marketers to do a lot on Digital Marketing.

Let us work out - Why do customers buy? What goes on inside a customer's mind before, during and after a purchase? How do buyers choose? What are the hidden influences in the earlier times & Which are majorinfluences “now”? How do buyers process information, particularly for Automotive purchase? Unlocking these secrets opens the door to success………

Why we buy a Coca-Cola? Is it because of thirst? (NO –but there is “pull” its marketer have created) Now, buying a Coke or buying a CAR is similar? Does it require the same pre buying Analytics?

Buyer behavior involves both simple and complex mental processes. Marketers cannot capture human nature in its entirety but we can learn a lot about customers through research, observation and thinking. What’s the latest divert of Human Psyche has been seen in the present years, be it India, US for that matter Oman. Don’t we feel that Web Social Media has grown up day by day and will it not alter buying behavior, inspite getting information is easy here for users or potential consumers. Have an idea of World’s Largest 3 Facebook Users countries, you ll be amazed that India is one. Largest Countries on Facebook (Source – CheckFacebook.com)
1.	United States	158 855 340
2.	Brazil	71 226 520
3.	India	63 769 440

Oman, has also shown a faster growth in Social Media users. Facebook users itself are 584900 in Oman, which is approx. 19% penetraion (Source - http://www.internetworldstats.com/middle.htm). So why Auto Marketers of Oman do not find it an easy way to market their product. Data itself states the need of Digital Value marketing. Data also depicts that at least this much percentage of consumer will try to use Search Engines of Oman to have information about their liked “Auto product”, or otherwise simply this much people may take their first step of decision for buying a new vehicle, online.

Trend Shaping Digital Marketing in the Oman or GCC Auto Sector–

Digital Marketing is a key to drive Premium perception, rather Digital initiatives were actually first taken in world by Premium Auto Brands & so in Oman. At Oman BMW started Digi-trend 4 year back. Digital offers opportunities for NSCs (or OEMs) along the complete value chain going far beyond traditional marketing. Digital communication needs to be strategic and comprehensive. While many inspiring examples of digital marketing success exist in the automotive industry, only a few players have begun to approach the online opportunity from a holistic perspective. Yet having a YouTube channel or innovative apps should be understood as a good starting point to fully leverage the digital opportunity. At Oman, still fewer players like SBAG - Renault, SBAG - Nissan & ZC-WW have moved a step ahead towards Digital Marketing. Other than the Website hosting, these brand have moved to YouTube Channeling, FB paging & Events,& Search Engine Optimization. There is still a big opportunity lies thru ROPO & Lead Generation thru Web Research. However, in the end only a systematic approach captures the full potential of the digital age. A heavy and growing reliance on online information sources requires marketers to pursue a marketing approach that cuts across different channels and customer touch points. Today, an average Cary buyer visits a web based search or the Company / product website before he finalize a purchase.

Finding customers in the digital world - As these trends demonstrate, digital interactions increasingly influence CDJs when it comes to shopping for and buying a car. As a consequence, OEMs or NSCs need to address this new behavior systematically. In addition to the above discussed trends, going digital can significantly reduce an automaker’s or Distributors’ channel costs and its expenses associated with loyalty programs and customer relationship management (CRM) initiatives. Given their advantages, digital media have overtaken traditional options in terms of effectiveness, and Oman NSCs are already using them heavily. During the next few years, we believe digital marketing budgets in the automotive space will experience the largest increases in the industry.

While digital media can reduce costs and boost marketing effectiveness, these benefits come at a price of their own. Automakers, for instance, lose partial control over the information flow that plays a critical role during the consideration and purchase intention/shortlisting stages. The digital revolution is changing consumer behavior towards traditional buying channels. For example, the average number of showroom visits prior to purchase has dropped from about ten in the past to Six today (an assumption from Sohar University Research), perhaps illustrating that the role of the dealer is no longer that of an information provider but one focused primarily on direct product experience and price negotiations. This is leading some to reassess their need for showrooms and facilities focused on handling higher visitor volumes.

Accessing new digital marketing opportunities - In order to address this changing customer behavior, Auto companies can take steps to accommodate new customer behaviors and in the process tap fully into larger digital marketing opportunities. It has become clear that online resources are not simply another information source for customers but that they completely change the behavior of shoppers throughout the information gathering and purchasing processes. In order to develop effective marketing strategies and plans that also involve the most efficient budget allocation, companies need to acquire a deep understanding of these various purchasing journeys – Since it works. Thus, I strongly believe that a robust digital marketing strategy must assume a holistic online/offline perspective and one way to achieve this goal is to make use of the CDJ. This framework helps OEMs develop a customer understanding/segmentation based on a combined perspective on buyers’ attitudes and channel/touch point usage. By examining the channels that customers use when shopping for cars or similar durable goods, marketers can determine which ones will be best for reaching customers. Likewise, analyzing attitudes will help automakers determine what kind of information consumers are seeking and what messages will reach them most efficiently and effectively.

Performing a CDJ-based segmentation & Targeting Online Consumers - A CDJ-based segmentation can provide critical insights into all key marketing areas. In order to address this changing customer behavior, NSCs (or Automakers) can take steps to accommodate new customer behaviors (segmenting the customer usage base whether websites, Google Services, SEO click or Social media etc) and in the process tap fully into larger digital marketing opportunities. It has become clear that online resources are not simply another information source for customers but that they completely change the behavior of shoppers throughout the information gathering and purchasing processes. Brand performance can differ significantly depending on what type of purchasing journey customers take. In order to develop effective marketing strategies and plans that also involve the most efficient budget allocation, companies need to acquire a deep understanding of these various purchasing journeys. The kinds of questions it can answer include: How do we manage our brand portfolio for growth, in the Digital Scenario? How should we invest our marketing budget in different Digital / Virtual communication channels? Which touch points / Digital Medias will win consumers in the active evaluation phase of car buying? Which communication messages should we deliver, and where? Which distribution channels should we favor, what should our price position be, and do we maintain customer loyalty?

The CDJ-based approach integrates the “how” of consumer attitudes— which reveals the kinds of information that they seek and the best messages for reaching them. By contrasting the traditional attitude dimension against the channels customers actually use to gather information about their next car purchases, marketers achieve much greater transparency into customer needs and behaviors. Online, their purchasing decisions tend to be especially influenced by websites info, forums and blogs. When ready to buy, they enter the dealership very well informed about products and prices and have normally already made up their minds regarding which car to purchase. These customers are primarily youngsters or middle-aged men who own more mid end or expensive cars, including a high share of sports cars.

This blog of mine gives my thought process on ideal & available Digital Marketing Avenues, supported by changing Oman & World space lookout on this media. Sources used are Internet World Stats, Check Facebook & some of major Digital Services providing Agencies of Country. The fast-moving digital age presents huge opportunities for NSCs & OEMs. Yet many NSCs or Automakers are still a bit “shy” about fully tapping these opportunities, spending too many marketing Riyal or dollars in traditional / legacy channels. The herein presented CDJ-based segmentation is a proven methodology in US & European countries, & that can also provide the insights of marketers need to holistically reallocate their spending for the digital age .

All the best……………………Mp / pathaksaheb10@gmail.com

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