3/26(Sat) Purchase through the internet (Host:Christina)

[Tom Lee]

Purchase through the internet or cell phone

Section 1:
How Digital Marketing Will Influence Industry Distribution Structures

We were always sensitive to the concerns of our partners, and since we were dramatically increasing our level of interaction with customers, I was ready to listen closely. My visitor surprised me with her simple request. She said, “We aren’t quite sure what you are up to, but please include us in everything you are doing!”

The lesson is that digital marketing–establishing digital interaction with customers and prospects around topics that matter to them–can strengthen relationships between distributors and product companies, benefiting both if they work together.

In The Digital World, The Full Spectrum Of Distribution Channels Will Remain Viable
In industries where distribution and production are distinct, distributors of all types often add significant value to customers. They provide a wide array of product choices in an economically efficient way. They provide greater pricing transparency–or at least enable customers to view multiple offers at a range of price points. And they provide objective advice to customers on the choices that are in their best interests.

As a result, there is and likely always will be some portion of customers who recognize the value of independent and/or owned bricks-and-mortar distribution rather than less expensive direct alternatives. Examples can be found in service sectors such as commercial insurance brokerage and consumer mortgage origination, as well as retail sectors such as (gulp) music, travel, and books.

Obviously, the Internet revolution started waves of change more than a decade ago. There are many examples of new distributors disrupting entire industries through digital technology (Amazon, iTunes, Travelocity). There are many other examples of nimble producers winning through digital distribution (Geico and Progressive in personal insurance; Fidelity and Charles Schwab in retail brokerage). And, ultimately, the big guys do catch up–State Farm, and JP Morgan Chase are great examples of updated go-to-market approaches based on new realities but built on traditional strengths.

The technology-driven disruption is taking a new turn–now customers are taking the lead as they shift to mobile devices and social media platforms of all shapes and sizes. Their expectations are now established by what they can do in their lives outside of work. Soon customers will fail to see why they can’t have the same level of information and peer interaction in their working activities, and they will quickly demand intuitive access to the information they need, as well seamless integration between their current producers and distributors. Existing distributors and producers will need to provide this; otherwise, their customers are likely switch to new producers, distributors, or both.

The Disruption Will Continue
Technology continues to evolve faster than most of us can follow. Cloud computing, coupled with the explosion of social and mobile, means that new ways of creating more benefits at lower cost are appearing every month. Customers will continue to be better off as the distributors they buy from develop digital capabilities–their search for better value will be steadily easier, and will lead them to the best price for the level of quality they seek.

Naturally, their distribution needs and preferences will differ between segments–some will seek more features and personal advice, while others will want to minimize cost. Distributors and producers need to understand ways they can add value to customer segments with different preferences, by integrating digital marketing capabilities with other forms of customer interaction.

There is a lot to gain for the producers and distributors who get it right–although there may be fewer of one or the other in the future. Current inefficiency in many industries leaves a lot of opportunity to use digital to get better. Countless instances of mismatches between what is provided and what is preferred, legacy IT system cost structures, imperfect pricing stemming from imperfect (or partial) information, and arm-wrestling between producers and distributors exist today, opening opportunities for savvy existing competitors or new entrants.

Structures Won’t Necessarily Change, But Winners And Losers Likely Will
What does this mean for the different parties, and why is marketing going to be steadily more important? Let’s examine each group:

• Distributors can build big-company capabilities on small-company budgets. Cloud-based software-as-a-service systems have low up-front investment requirements and are ultimately scalable. Vertical integration in the marketing automation space means that selection of components will be less uncertain, and different components will be easier to integrate. But distributors must strive to increase the value they provide to customers in order to confidently work more closely with the producers they partner with. Digital marketing helps customers understand the value their distributors provide.

• Producers can and should include the customer in all facets of their businesses, which means increasing their level of direct customer interaction. A good place to start is seeking customer input on product development, based on unmet or emerging needs. Feedback on service quality at different points in the life cycle is equally important. In order to get the most benefit, producers need to work together with trusted distributors to improve the quality of all of their customer interactions. Then they need to incorporate the insights they gain into the products and services they offer through their distribution, and be sure the customers are aware of the improved value they provide through an evolving digital marketing process.

• Customers stand to be the big winners. They will have increasingly easy access to alternative distributors and producers, as well as the resulting information, whether or not they have any intention of shopping or switching. Some (or perhaps most) of the efficiency improvements will ultimately flow to them in the form of lower prices for any given level of service and quality. And at some point, they will begin to consult with each other on purchases, even in a B2B context. The producers and distributors who are doing the best job will be in a position to win at the expense of the rest.

A Few Thoughts Based On Digitally Driven Marketing Trends
Forward-looking articles are always more fun when they end with predictions. So here are three:

• Producers may consolidate, while distributors may proliferate. As the world becomes steadily more transparent, inefficient producers will suffer. On the other hand, the cost and difficulty of building and maintaining quality digital marketing capabilities is dropping rapidly, lowering entry barriers to new distributors who understand specific customer segments.

• More and tighter partnerships will form. As producers and distributors seek to form tighter, more integrated customer interaction capabilities, they will need to choose where and with whom to invest. The days of letting 1,000 business relationships bloom may be coming to an end.

• Ultimately, the lion’s share of the benefit will flow to the customer. And isn’t that what it is all about?

Question:
1. Purchase through internet or cell phone became an alternative choice of distributing products a decade ago. How often will you purchase from internet? What kind of products will you prefer to purchase from internet or cell phone rather than bricks-and-mortar distribution(實體店面)? And why?
2. Do you think that purchase from internet or cell phone will ultimately replace to purchase in the real stores, just as Jack Ma(馬雲) once said to the president of Wanda group? Why or why not?
3. Which factors will they attract you to purchase through internet from customers prospect, comparing with bricks-and-mortar distribution? Do you think O2O(online to offline), meaning that purchase in the internet combines with real stores, will work?
4. If you are the boss, what kind of product will you plan to sell in the internet?

Section 2:

Video one: How Threadless turns T-shirts and technology into works of art
http://bluesky.chicagotribune.com/origi ... emiumvideo

Video two: Thom and Ed talk about in release of Rainbows album
https://www.youtube.com/watch?v=V-4CpJyZ4Yw

Questions:
1. From video one, threadless company let customer participate in designing T-shirts by themselves, and if the design is adopted, the customer will get 20% profit. Do you think that it is a good idea for selling new products? Why? Will you buy it?
2. Customized products are more popular, do you think it is a good marketing strategy? If it is more expensive, are you still willing to purchase?
3. From Video 2, the release of this album is adopted the price strategy of “pay whatever you what”, even it is $0, and it still earned much money. Do you think this price strategy will work in Taiwan or Asia? Is price an important factor for purchase in the internet or cell phone?

p.s. I just travel led to Tokyo this month, so I will bring some snacks for you all.

============================

Agenda:

3:45 ~ 4:00pm Greetings & Free Talk / Ordering Beverage or Meal / Getting Newcomer’s Information
4:00 ~ 4:10pm Opening Remarks / Newcomer’s Self-introduction / Grouping
(Session I)
4:10 ~ 4:40pm Discussion Session (30 mins)
4:40 ~ 4:55pm Summarization (15 mins)
4:55~ 5:05pm Regrouping / Instruction Giving / Taking a 10 Minutes Break (Intermission)
(Session II)
5:15 ~ 5:55pm Discussion Session (40 mins)
5:55 ~ 6:20pm Summarization (25 mins)
6:20 ~ 6:30pm Concluding Remarks/Announcement

********************

聚會日期：列於該貼文主題內
聚會時間：請準時 4:00 pm 到 ~ 約 6:30 pm 左右結束
星期六聚會地點：丹堤濟南店
地址、電話：台北市濟南路三段25號 地圖 (02) 2740-2350
捷運站：板南線 忠孝新生站 3 號出口
走法：出忠孝新生站 3 號出口後，沿著巷子(忠孝東路三段10巷)走約 2 分鐘，到了濟南路口，左轉走約 2 分鐘即可看到。
最低消費： 80 元


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給新朋友的話：
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[Laura]

This Tuesday's article is too strong
to compete!
viewtopic.php?f=2&t=4101


Please keep in mind, the world is wonderful because of Purchase through the internet (Host:Christina).

[tashi]

http://www.inside.com.tw/2015/03/02/jum ... jump-right

Article talking about O2O.

For online shopping I think few factors are important:
1. You can get it immediately after you buy it. Like online magazines.
2. It's trust worthy. I might consider buy a Apple track pad in their online store and think I don't need to worry quality issue.
But for clothes, it's hard to tell unless I know the boss.
3. It's costless. Some stuffs in 淘寶 are cheap and interesting. Many of my friends buy things from there from time to time even sometimes they got crapy shit.

[tashi]

Attendees:

Tashi
Alex
Willy
Vincent
Sabrina
Julian
Leo
Andy
Allisa
James
Howard
Shong
Becky
Fin
Yom
Ramesh
Blithe