Sunday, 21 March 2010

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.

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