Vol.25 – How to Effectively Integrate Media/Communication Channels? (Part 1)

In the previous article Vol.24: How Media/Communication Channels Are Changing (Part 2), paradigm shift in media and communication channels, focusing on spatial channel attributed to web/internet, dramatically changing traditional media, was discussed. In this article, how media and communication channels can be effectively mixed and integrated for online and offline synergy is discussed.

1. How were media and communication channels used to be integrated and mixed before the emergence of the Internet? (Pattern 1: offline, bricks/mortar and bricks/mortar)

Before the emergence of the Internet, offline traditional media and communication channels were integrated to form AIDMA (Attention, Interest, Desire, Memory, Action) flow. Media and communication channel were carefully selected and mixed, leveraging characteristics of each of them mentioned in the previous article Vol,22: What Distinguishes Internet/Web From Traditional Media?

There are 3 phases in typical offline media/communication channel integration. First phase is getting attention of consumers and attracting them to the special channel (store, event, tradeshow etc.), which is mostly attention and interest of AIDMA. Advertising of traditional mass media (TV, magazine, newspaper) and direct mail are ideal for this phase.

Second phase is persuading consumers to buy (take action), which is mostly desire and action of AIDMA. Spatial channel is the main channel but other channels such as face-to-face communication (of sales person) and printed matter (for mail order) can also be used.

And the last phase is follow-up. Face-to-face and/or phone of sales person/customer service staff are often used.

2. How are media and communication channels integrated exclusively online? Is that possible? (Pattern 2: online, click and click)

Yes, it is possible to select only online media and communication channels and integrate effectively, although this might be rather rare. This is usually adopted by what we call “IT companies” or “dot com companies”.

This pattern also has 3 phases, with same concept as offline version of pattern 1. In the first phase, e-mail (including e-newsletter and online DM), SEO and online advertising are often used, to drive web users to the website/web content including online spatial channel. Details of this topic have already been explained in the previous article Vol.11: How to Successfully Drive Web Users to Web Contents. After driven to the website/web content, online buyers are navigated to go through the persuasion scenario as explained in the previous article Vol.13: How is Landing Page Optimization Related to Persuasion Scenario?. In some cases, web users are first “invited” to trade show, events etc, which can be regarded as a part of this phase of the total buying process. And in all cases, web users are driven to reference landing page, and its possible methodologies have been explained in the previous article Vol.15: How to Effectively Optimize Reference Landing Page.

In the second phase, online spatial channels (online store, trade show and event online information, webiner etc.) are typical; however, other web contents such as product and other information and social media (e.g. SNS, blog) can be categorized in this phase. Other social ecosystem constituents mentioned in the previous article Vol.5: What Social Media Ecosystem Does Web 2.0 Realize? such as skype, video/audio podcast, streaming and virtual world can enrich web content and help online buyers to go through the buying process smoothly and quickly. And, web users (buyers), going through buying process, will finally navigated to transactional landing page and persuaded to take action (buy), as explained in the previous article Vol.16: How to Effectively Optimize Transactional Landing Page.

And in the last phase of follow-up, media and communication channel such as e-mail, social media (e.g. micro-blogging, SNS) and skype can be used.

3. How are online and offline media and communication channels integrated? (Pattern 3: online and offline, clicks and mortar)

This pattern is the ideal and most common today, regardless of industry, company and organization. The proportion of online and offline, and which media/communication channels used depends on the industry, company/organization and other factors such as physical restriction. IT industry tends to focus on online and conservative industry (e.g. construction) tends to focus on offline. This pattern is mixture of the other 2 patterns.

This pattern also has 3 phases with same concept for each phase being the same as the other 2 patterns. In first phase, online and offline media/communication channels can be used, with similar concept and methodologies as the other 2 patterns. The media/communication channels used include e-mail (e.g. e-newsletter), SEO, online and offline/traditional media advertising, and online/offline DM are often used, to drive online and offline customers/buyers to the website/web content and/or online and offline spatial channel.

In the second phase, online and offline online spatial channels are typical. Others such as web contents such as product and other information and social media (e.g. SNS, blog) for online and face-to-face communication (of sales person) and printed matter (for mail order) can also be used, although they might be minority today. For online media and communication channels, social ecosystem constituents mentioned in pattern 2 can enrich web content and help online buyers to go through the buying process smoothly and quickly for the same reason.

And in the last phase of follow-up, online media and communication channels such as e-mail, social media (e.g. micro-blogging, SNS) and skype are often used today. But offline channels of face-to-face and/or phone of sales person/customer service staff are used as well, depending on the details of follow-up.

4. Effective online and offline media and communication channels integration (clicks and mortar) make interesting business model.

Pattern 3 (clicks and mortar), effectively selecting, mixing and integrating online and offline media/communication channels, often means interesting and original business model(s), not simply a way of how information/content is distributed to consumers.

A typical example is air ticket and hotel reservation. Customers will know the services by online and offline advertising etc. and today usually they are driven to website, where they use search function etc. and make reservation online. And finally they are provided with services offline (enjoying flight, accommodation at the hotel).

An extremely interesting example is of content business of a Japanese leading DVD/CD rental company called Tsutaya. It has started new business of clicks and mortar, to survive, when online paid content business and iPod is becoming popular, giving negative impact on their business. They recently are trying to attract attention of customers by TV advertising so that they would make reservation online, and have the DVD/CD discs sent to their house instead of handing the discs directly to the customers at their offline store. Customers can return the discs by post.

It is interesting to note that many non-marketing activities of companies/organizations, each activities constituting value chain have been going through evolution, falling into pattern 3. Recent recruiting in which IT is leveraged, introduced in another article How IT Supports Tough Job Hunting of Gradiates in Japan?, is an example of integrating online and offline media and communication channels; therefore, this can be categorized as pattern 3.

In the next article, the author would like to further discuss effective integration of online and offline media and communication channels.


References:-

Mitachi, Takashi (1998), Deconstruction: Disintegration and Reintegration of Value Chain. Diamond Harvard Business Review, October-November, in Japanese, pp110-123.

Vol.24: How Media/Communication Channels Are Changing? (Part 2)

In the previous article Vol 23: How Media/Communication Channels Are Changing? (Part 1) paradigm shift in media and communication channel attributed to web/internet, dramatically changing traditional media was discussed. This article, the latter half of paradigm shift in media and communication channel, focuses on spatial channel.

1. What kind of paradigm shift has been in process (and still is) in spatial channel, with the advent of the Internet and Web 2.0?

The essence is the same as the paradigm shift in traditional media, i.e. in addition to emergence of online media, online and offline spatial channels have been converging. This has been triggering emergence of new communication and business. Moreover, online is truly becoming ubiquitous, attributing to the fact that web 2.0 technologies mean emergence and proliferation of social media, further driven by mobile (platform, applications, devices).

Based on the Media/Communication Channel Paradigm Shift chart, the author would like to briefly explain how such paradigm shift is in progress.

2. How are spatial channels changing?

Online and offline convergence is in process, triggering dramatic changes. This has created some innovative ways of content/service delivery and new business model.

1) Stores

Stores used to mean physical space where consumers visit, interact with staff to see and try products and services to buy. With the emergence of the Internet, websites became popular, which are, regardless of the type (e.g. corporate information, product information, EC = Electric Commerce), can be and often are regarded as stores in website analysis and development. In such a case, top page is regarded as front entrance, left hand menu as level/ground of the building, web content as sections, web page as shelf, and links as doors leading to different buildings, level/ground and sections.

(1) Emergence of online stores led to new business models and paradigm shift in retail industry in particular

Internet marketers realized that websites have potential to play the role of the offline store, including trading by adding EC function, and developed the first online stores such as eBay and amazon, symbol of the Internet business. This meant new business model and paradigm shift in retail industry worldwide. In Japan Rakuten, another type of online store business started whose business concept is online shopping mall. Rakuten is the online shopping mall owner and attracts and supports online business owners to do business in their online shopping mall. Support includes providing the platform and consulting. Today there are many different types of EC websites/online stores, and more new business models leveraging the Internet.

(2) Manufacturers including traditionally brick and mortar companies now enjoy online store business

Online stores are not limited to IT business companies; many manufacturers including traditional brick and mortar companies also do business online leveraging online stores. Dell, famous for its unique and original PC manufacturing and delivery business model leveraging the Internet, extremely enjoys online business with Dell Outlet (leveraging social media), and offline business as well.

Panasonic, a symbol of a Japanese brick and mortar company that had once withdrawn from computer business, re-entered PC business around 2000 and started their online PC business (at least in Japan) when they launched Let’s Note series. Their Let’s Notes series online store started to become popular when they made differentiation between online and offline business by allowing online consumers to select a colour from 16 colours available and order for a particular model, and established an online community website. Large proportion of their revenue comes from offline business but now they do enjoy online business of Let’s Notes series as well.

2) Trade shows

Trade show itself is still online focused in general but usually its content is available online today. Since the objective of trade show web content is providing web users with information of the show and not (directly) selling products and services, one difference from online store is that is does not have EC function, and focuses on information of the show.

3) Events, forums and seminars

Events, forums and seminars used to be something held offline, but today, similarly to store, online and offline is converging, leading to new forms of events, forums and seminars. With the advent of the Internet, information of events, forums and events held offline started to be provided online, similarly to trade show information. And now, some are now planned and held online, even exclusively online, especially seminars.

Seminar held, often exclusively, offline has become popular, leading to variety of web content and services, which can be said as new business models for some. Online seminar has become so popular, and new word of “webinar” (web + seminar) was coined and has become quite popular among web users. Online training and education can be included in / categorized as online seminar, and many of them have become quite popular, some evolving into new format and/or business. Many companies provide employees around the globe with online training (a European pharmaceutical company calls it “e-learning”). Some business schools provide courses/programmes online in addition to traditional offline courses/programmes or online exclusively. This attracts customers (students) not limiting to their physical location, time of their availability etc., meaning new business opportunity and business model, similarly to online store.


Having looked at paradigm shift in media and communication channel, the author would like to discuss how marketers, PR professionals, communicators and business owners can leverage online and offline media and communication channels to maximize effect in the next article.


References:-

Mitachi, Takashi (1998), Deconstruction: Disintegration and Reintegration of Value Chain. Diamond Harvard Business Review, October-November, in Japanese, pp110-123.

Vol.23: How Media/Communication Channels Are Changing? (Part 1)

In the previous article Vol.22: What Distinguished Internet/Web From Traditional Media?characteristics of Internet/web were compared with those of traditional media to distinguish uniqueness of Internet media and clarify key factors that would contribute to effectively leveraging each media for online and offline synergy.

The topic of this article and the next is paradigm shift in media and communication channel attributed to web/Internet, that dramatically changing traditional media.

1. What kind of paradigm shift has been in process (and still is) in media and communication channel, with the advent of the Internet and Web 2.0?

In short, in addition to emergence of online media, online and offline media and communication channels have been converging, and this has been triggering emergence of many different types of media and communication channels. Moreover, online is truly becoming ubiquitous media and communication channel, attributing to the fact that web 2.0 technologies mean emergence and proliferation of social media, further driven by mobile (platform, applications, devices).

Based on the Media/Communication Channel Paradigm Shift chart, the author would like to briefly explain how such paradigm shift is in progress. In doing so, the author would like to explain changes in traditional media and communication channels in this article, and changes in spatial channel in the next article.

2. How are traditional mass media changing?

Although the speed and degree varies from media to media, online and offline convergence in ongoing for traditional (mass) media, and for some media it may well evolve further more, changing to something quite different from what it is today.

1) Newspapers and magazines

In addition to traditional printed media, newspaper and magazine companies (publishers) now have online content online. As discussed in the previous article Vol.20: How Are News Media to Survive In Web 2.0 World? publishers are trying to develop their own optimum business strategy to establish new business model in the Internet era, which are mostly converging of online and offline business. Examples include making differentiation of printed and online content for co-existence of the two. In fact, Nikkei net, Japan’s leading newspaper website specialized for business and economy, will position (change) their online website as “electronics version newspaper”. Some others are going online exclusively. A Japanese magazine from Recruit (company name) specialized for job hunting closed its offline business and went online only many years ago, establishing new business model. Since the group company also had recruiting business unit as well, which was the leader in this industry in Japan, it had combined the magazine business and recruiting business, leveraging the power of Internet.

2) TV

To the author, online and offline convergence in TV is quite interesting and dramatic. Concept of traditional TV is changing with Hulu.com from consumers watching broadcasting when the content they are interested in are available or recording and watch it later. But now with Humu.com they can watch anytime.

Moreover, interactive TV is emerging and this could change to make revolution in TV media and online interactive TV may well become one of the primary online media in addition to PC and mobile. Interactive TV concept already existed in a vision of a Japanese consumer electronic giant (the company the author used to work for and the author developed web content to deliver this vision) in 2001, with content service called “T Mode” (vs. mobile content service in Japan called “I Mode” that started in 1997). The pilot TV set and content service became available from around 2004, and the author rolled out one of her PC web content to interactive TV (T Mode) content. Interactive TV era might still be “future concept”, it would surely come in not a distant future.

And lately, TV has been collaborating with mobile Internet and phone, at least in some TV programmes in Japan. For example, MCs of the TV programme would ask audience to vote by mobile Internet or by phone, and the result would be announced later in the same TV programme. Voting by phone used to be popular but lately voting by mobile Internet is much more popular.

Another example of TV collaborating with the Internet is in cooking TV programme, MCs would recap the ingredience and recipe at the end then encourage audience to access online page of the recipe by introducing them the URL. Similar tactics/methodologies of linking TV with the Internet are often seen in TV commercials in Japan. At the end of the 15 sec/30 sec TV commercial, search page with the product/service/brand name typed in is shown to encourage audience to get more information by the Internet.

The author feels that Interactive TV and its platform/content services have potential to integrate everything to make it simple. Interactive TV would be ideal for quiz, voting and online shopping TV programmes. Interactive TV would be another driver of further innovation in content distribution.

3) DM and coupons

DM and coupons are no longer only in print. Rather, more and more consumers download them from the Internet, print out, and take it with them in shopping, dining, staying at a hotel etc. DM and coupons are already becoming paperless, and with further evolution of content/web service distribution and applications, it is quite possible that DM and coupons would totally become paperless in the near future.

3. Are similar changes in progress in other communication channel as well?

Yes, changes that are same in essence are in progress in other communication channels as well. Face-to-face communication in person and is offline but with skype, similar benefit can be obtained online. Same goes for phone. Benefit similar to radio can be obtained by podcast. Skype and podcast are both of web 2.0 technologies, as explained in the previous article Vol.5: What Social Media Ecosystem Does Web 2.0 Realize?


Changes in spatial channel are also dramatic and interesting. This will be discussed in the next article as Part 2.


References:-

Mitachi, Takashi (1998), Deconstruction: Disintegration and Reintegration of Value Chain. Diamond Harvard Business Review, October-November, in Japanese, pp110-123.