Zero Moment of Truth

Zero Moment of truth also know as ZMOT is defined as the “moment where marketing happens, and where consumers make choices that affect the success and failure of nearly every brand in the world”. (Aichner, 2012) The concept was inspired by the first moment of truth (FMOT), a term in marketing that describes the moment at the store shelf, when consumers make decision on brands.(Aichner, 2012) It was first introduced by google and describe the complete shift in the process consumers search for information online and make decision on brands. (Lecinski, 2014) According to google and their research it was visible that consumers are increasingly making decision at the Zero Moment – A precise time when consumers have a need, intent or question that they want an answer to. A brand that are able to answer these question at that precise moment scores a double win. (Lecinski, 2014)

More importantly it was put forth to illustrate the fact that there is a precise moment  that aids to better consumer’s life and act as a catalyst to gain competitive advantage  fro companies over their competitors. Thus, the concept is very crucial for brands of today’s day and age. Especially, with the development of the world wide web and expansion of its users, the Internet has become popular source of information which can be accessed faster in more convenient manner. (Łysik, 2014) the world wide web is the place where internet users are now deciding to make their purchase whether online of offline. (Łysik, 2014) Shopper nowadays go back and fourth at own discretion in multiples marketplaces and these “multichannel consumer’s decision making for product purchase comes from where they search, review ratings, styles, prices comments on social media before visiting a retailer.” (Dave, 62)

Therefore to achieve the ultimate exposure and drive greater sales through and from the internet, they need to know when and where the Zero moment occurs, how the decision making process of the consumers work and how it is triggered by product related concept such as purchase intention, product knowledge and product involvement. (Lecinski, 2014)

Although, it is known that consumers tend research product prior to purchasing it but  up until now where they tend to look for it and why is unclear. (Łysik, 2014) However, due to the existense of internet that is far more easier to know than ever before. The concept aids organisation to know the answer to such question to better position themselves in the market.(Łysik, 2014) According to the figure below sits in between stimulus and first moment of truth, it is the pre shopping driver that lead to the first moment of truth which emerges from research stage. Judging for the is position to say the zero moment is the precise moment that incline one to purchase a particular product which is well portrayed in the follow figure. (Dave, 62)

Platform like social media is effective place to use ZMOT marketing concept. Through these channels consumer are able to share opinion and learn from each other’s experience with specific products. (Łysik, 2014) More likely consumers decision making is influenced by friends along with consumer reviews and expert opinions. (Łysik, 2014) Thus utilizing those opinion, reviews and recommendation brands can place themselves better in the market. (Łysik, 2014) Nonetheless their can create presence and reach potential clients faster by facilitating them with the answer they seek for when searching information regarding a product prior to its purchase.

References

Łysik, Ł., Kutera, R., & Machura, P. (2014). Zero Moment of Truth: a new Marketing Challenge in Mobile Consumer Communities. In ECSM2014-Proceedings of the European Conference on Social Media: ECSM 2014 (p. 294). Academic Conferences Limited.

Aichner, T. (2012). The Zero Moment of Truth in Mass Customization. International Journal of Industrial Engineering and Management, 3(4), 173-178.

Chicago

Moran, G., Muzellec, L., & Nolan, E. (2014). Consumer moments of truth in the digital context. Journal of Advertising Research, 54(2), 200-204.

Chicago

Dave, Chaffey,, Ellis-Chadwick, Fiona. Digital Marketing, 6th Edition. Pearson (Intl), 01/2016..

Lecinski, J. (2011). ZMOT. [Mountain View, Calif.]: Google.

Lecinski, J. (2014). ZMOT: Why It Matters Now More Than Ever. Think with Google. Retrieved 13 September 2016, from https://www.thinkwithgoogle.com/articles/zmot-why-it-matters-now-more-than-ever.html

The development of the Dell’s business model

Dell Technologies Inc. also know as Dell is a private owned multinational computer technology firm named after its founder, Micheal Dell. The Texas based firm develops, sells, repairs and supports computer and its complement goods and services. (Dell, 2016) As of 1992 the firms is one of the largest technological corporation in the world with revenues over $54 billion and 100,000+ employees worldwide. (Dell, 2016) Currently the company sells personal computer, server, data storage devices, tablets, printers, monitors, softwares and other electronic devices. (Dell, 2016)  The firms came to the limelight due to its innovation in the supply chain management and e-commerce. To be more specific, because of their direct-sales model and their build-to-order approach to manufacturing which essentially enable customers to purchase computers configured to their desired specification.

Despite being a pure hardware based vendor for most part of the company’s life, the firm entered the IT services industries in 2009 after it acquired Perot Systems. (Dell, 2016) This further instigated them to acquire additional companies in storage and networking system in hopes of expanding their portfolio from offering only computers to providing comprehensive solution for enterprise customers. (Dell, 2016) As of 2015 the firms has 13.3% marketshare worldwide which put them on the 3rd place when measure by the numbers of unit sold. (Shirer, Chou, & Loverde, 2016) Although, the firms major competitors such as Lenevo and HP hold slightly higher market share the company has come a long way from 5.5% marketshare worldwide in 1997 to 13.3% in 2015. The firms is also ahead of its next competitors such as Apple and Asus with 6% more marketshare worldwide. (Shirer, Chou, & Loverde, 2016)

Such achievement of the firms stems from its uniques approach to marketing. Thus, major contributor to their success are comprised or two types of customers. (Smith, 2012) The relationship based customer such as large corporation, government and educational institutes and on the contrary transactional customers who seeks low cost, reliable products that comes with quality service and added value products. (Smith, 2012) The firms with its unique approach to marketing have been able to tap both of these target market. Although relationship based customers helps the firm generate its largest portion of profit, the firms did not forget the transaction customers. Hence firms uses dedicates sales representative or account manager, tailored customer-specific website with predetermined customer specification and pricing, fruther enable clients to access product design and provide product support along with service information and order status to cater it bigger clients. (Smith, 2012) On the other hand provides tailored direct sales services to its transaction customers over advance technologies and e-commerce to enable them purchase build to order and customised personal computers. (Smith, 2012)

Source Dell Premier, 2016

Despite all of that the world wide web to be more specific e-commerce, IT consultancy  services, supplies of software and system integrations helped dell to come to this position that they are in. (Chaffey, Ellis-Chadwick, Isaac, 2016) The firms was was not only the first of its kind to utilise direct sales method which they achieved which the help of tools like dell marketplace they have also used other innovative techniques to boost sales such as ideastorm which further enriches customer responsiveness of the company. (Chaffey, Ellis-Chadwick, Isaac, 2016) The firm with its acquisition of numerous companies under the tech industries such Perot systems and etc achieved to provide comprehensive solutions to business. (Chaffey, Ellis-Chadwick, Isaac, 2016) This facilitated larger firms and organisations to purchasing and set up computer and information systems in much easier way. Nonetheless with their tailored services along with comprehensive solution the firm was able to gain trust and build strong relation with their clients.

Source IdeaStorm, 2016

Source Dell Marketplace, 2016

Therefore large part of the companies developments are due the firms ability to diversify which enabled them provide comprehensive solution to its clients. The firms utilisation of advance technologies, online marketing and online marketplace similarly contributed to its development. For example The firms direct sales method was a distinct choice of distribution but it allowed them to eliminate intermediaries, achieve higher profit market and provide uniques purchasing experience to their clients. Despite starting their sales through phone the firm eventually adopted online market places that enable them to sell their product directly to its clients in more efficient and easier manner. From all of these aforementioned pointed it seems these innovation and marketing techniques were the cause of such achievement and contributed to it success and show the path of its development.

References

Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective. Journal of business research, 58(6), 726-735.

Magretta, J. (2002). Why business models matter.

Chesbrough, H. (2007). Business model innovation: it’s not just about technology anymore. Strategy & leadership, 35(6), 12-17.

Jones, K. (2003). The Dell Way Michael Dell’s famous business model made his company the world’s premier computer maker. Now he’s branching into new fields and taking on virtually every other hardware manufacturer. Can “the Model” stand the strain? – February 1, 2003. Money.cnn.com. Retrieved 4 September 2016, from http://money.cnn.com/magazines/business2/business2_archive/2003/02/01/335960/

Smith, A. (2012). Marketing Lecture : From sellers market to buyers market: Segmentation Targeting And Positioning Of Dell – Sanjeev Thakur. Vishalrawal5.blogspot.com.au. Retrieved 4 September 2016, from http://vishalrawal5.blogspot.com.au/2012/12/segmentation-targeting-and-positioning_8347.html

Kraemer, Kenneth L; Dedrick, Jason; & Yamashiro, Sandra. (1999). Refining and Extending the Business Model with Information Technology: Dell Computer Corporation. Personal Computing Industry Center. UC Irvine: Personal Computing Industry Center. Retrieved from: https://escholarship.org/uc/item/7vn6n4z3

Shirer, M., Chou, J., & Loverde, L. (2016). PC Market Finishes 2015 As Expected, Hopefully Setting the Stage for a More Stable Future, According to IDC. http://www.idc.com. Retrieved 4 September 2016, from http://www.idc.com/getdoc.jsp?containerId=prUS40909316

Chaffey, D., Ellis-Chadwick, F., Isaac.(2016). Digital Marketing. 6th,Montreuil: Pearson.

Dell, (2016). A Season of Unprecedented Growth. Dell. Retrieved 4 September 2016, from http://www.dell.com/learn/us/en/vn/season-of-growth?c=us&l=en&s=corp&cs=vn

Consumer’s online customer experiences discussion using the elements proposed by Rose and Hair

Consumer’s online customer experience is crucial for the growth of business. Especially with the increase of online marketplaces and consumer willingness to shift to online shopping, it has become important for online retailers to provide great experience to their consumers. Thus, It is one of those subject that have been widely studied in many context. (Chaffey, D., Ellis-Chadwick, F., Isaac. 2016) One result of such studies is the “Framework for understanding online customer experience” by Rose and Hair presented in 2011. The framework was put forth to show factors that influences and motivates the online customers. (Chaffey, D., Ellis-Chadwick, F., Isaac. 2016)

                                                                                                                         Source: Digital Marketing 2016

According to the framework presented there are total of 8 antecedents that leads up to the positive customers experience which then results in two consequences. Those 8 Antecedents are as follows

1. Information processing: how the consumer process the date and information available
2. Perceived ease of use: how ease to use it seemed to the customer
3. Perceived usefulness: how useful consumer feel the service was
4. Perceived Benefit: how benefited the customer feel they were by the usage or how benefited they will from the usage
5. Perceived Control: how much control they have over the business process
6. Skill: consumer’s ability to use technology and navigate through the market place
7. Trust and Risk: how much trust they have on the service and how much risk they feel they would have to take
8. Enjoyment: the out come of the previous experience

Hence, what this model suggest it is highly important for the for business to ensure that they understand their target market so that they can ensure that their service is easy to use for their customers, ensure it is useful to their customers, ensure their are benefits for their customer from its usage, ensure that customer feel they are in control of what they are doing, build trust between business and customer, reduce the any risk involved. All of such steps eventually leads up to a positive experience that enable business to retain customer and maximise customer satisfaction. (Chaffey, D., Ellis-Chadwick, F., Isaac. 2016) More interestingly these antecedents can be very easy identified by identifying the target audience, analysing their level of skills on technology and figure out what they want and how they want so that services can be provided they way they desire. And in term of reducing risk and building trust they also adopt methods like money back guarantee, insurance on purchased product and ensuring successful delivery of the products order by the customers.

However, all of these antecedents then leads up to the customer experience which translates to the consequences. As per the framework experiences are categorised in two state cognitive state and affective state. (Chaffey, D., Ellis-Chadwick, F., Isaac. 2016) These essentially means to how the customer feels and think about the online experience. It makes sense for personal experience on why those antecedents reflect one’s experience and as a result shape their action which of course is the consequences.

Thinking more about my personal experience with online shopping, it is understandable that my how i perceived the service is terms of the benefit, ease of use, usefulness and trustworthiness lead up to my experience with certain online market places to be positive. That is really why I am satisfied with the online marketplaces that I go to and chose to buy from repeatedly.

References 

Chaffey, D., Ellis-Chadwick, F., Isaac.(2016). Digital Marketing. 6th,Montreuil: Pearson.

Novak, T. P., Hoffman, D. L., & Yung, Y. F. (2000). Measuring the customer experience in online environments: A structural modeling approach. Marketing science, 19(1), 22-42. Chicago

Rose, S., Clark, M., Samouel, P., & Hair, N. (2012). Online customer experience in e-retailing: an empirical model of antecedents and outcomes. Journal of Retailing, 88(2), 308-322. Chicago

From web 2.0 to 4.0 – discuss the changes an implications for marketing

Web 2.0 a level up from the first stage of world wide web known as web 1.0. It is referred as the second generation of world wide web or “the widely read-write web”. Web 2.0 is distinguished by change from statics website to more dynamic or user generated content. That, allow it’s users the freedom to interact and collaborate in the virtual community with social media dialogue through the creation of user generated contents. Some examples of such world world web are social networking platform like Facebook and wikis like wikipedia as shown below.

 

Source Wikipedia, 2016 & Sustainable web solution blog, 2014

On the other hand Web 3.0 which stems from the web 2.0, as its extension, is a semantic web that allows users to find, share, use, and combine information in more easier and efficient manner across various application, enterprise and community boundaries. It is put forth to “improve data management, trigger creativity and innovation, enhance customer satisfaction and help to organise collaboration in the social web”. However, web 4.0 is a step further from web 3.0 and it is considered to be an ultra-intelligent electronic agent or symbiotic web. The platform primary goal is to host integration between humans and machines in symbiosis where machines would act as an agent of the user. As a result web 4.0 will be reading the contents of the web, deciding on what to website to load in a faster manner with superior quality and performance. Further allowing the users with the opportunity to encounter more commanding interfaces.

What is fascinating is, as world wide web evolves from web 2.0 to web 4.0 it open up array of opportunities for businesses. Such opportunities has greater implications on marketing too. With the evolution of world wide websites from 1.0 and 2.0, it did not only open up scopes for new ways of promoting but this has enable firms to produce better products and create better distribution channels. What web 2.0 also facilitated businesses is with the opportunity to interact with customer, getting faster feed backs and enhanced customer responsiveness. Similarly with the introduction of web 3.0 firms will be able to place their brand and product in the market in far more efficient and effective manner. Semantic web will allow firms to reach clients faster and in a more effective way that can take marketing to a different level and often reduce number of input firm need to make currently. Further enable them with mechanisms that can improve competitive advantage. However, what implication web 4.0 might have on marketing is not certain as of now but it surely seem that it will changes how promotion is being conducted now. It might change the way business advertise, sell or even promote their business and also open up new industries for businesses. Nonetheless one thing is certain that businesses might not even require sales person during time of web 4.0 as interaction of machines with human in symbiosis could fill that spot.

References 

Kimbrell, Julia. (January 2013). The Impacts of Web 2.0, Web 3.0, and Web 4.0 Technologies Used in Distance Education (Master’s Thesis, East Carolina University). Retrieved from the Scholarship.

Choudhury, N. (2014). World wide web and its journey from web 1.0 to web 4.0. Int. J. Comput. Sc. Inf. Tech, 5(6), 8096-8100.

Chicago

Garrigos-Simon, F. J., Lapiedra Alcamí, R., & Barberá Ribera, T. (2012). Social networks and Web 3.0: their impact on the management and marketing of organizations. Management Decision, 50(10), 1880-1890.