Marketing Traditional & Digital 4.docx PDF

Let me rush, unless you don\'t want to see everything, I know. Oh, okay. And now we talk about AIDA. Who of you knows the AIDA sales and marketing model? You know the model: Awareness, Interest, Desire, and Action. AIDA is a methodology; AIDA is a funnel diagram. At the very left, you have 4 million...

Let me rush, unless you don\'t want to see everything, I know. Oh, okay. And now we talk about AIDA. Who of you knows the AIDA sales and marketing model? You know the model: Awareness, Interest, Desire, and Action. AIDA is a methodology; AIDA is a funnel diagram. At the very left, you have 4 million potential customer views, and you launch a promotional campaign in the market. The first idea, the first aim, the first goal that your promotional campaign, communication campaign, integrated marketing campaign must generate is attention. Walking in the street, I see a superb, beautiful piece of advertisement. 19:32 I\'m attracted by it. Attracted. The advertisement has captured my attention. What is the second step? I ask for information; I get data; I compare products. If I\'m attracted by the product, number one, I didn\'t know I needed it. I didn\'t know I wanted it. So before starting to desire it, I start gathering information. Nowadays, in the digital world, you don\'t go to the store, even to an Amazon store, without having already gotten a certain amount of information. In ancient times, you would go to a store because you wanted to have a car, and you were relying on the sales manager. He would tell you, \"Don\'t buy this car; buy this car, which is much better or costs less.\" We already mentioned that before. Nowadays, you gather a lot of information. So, attention: you are attracted by that specific product. You acquire a set of information. Based on the information, you start desiring the product. As soon as you are in the desire mood, what is the call to action? You go to a store---physical, digital, e-commerce platform, institution, etc. You go and get the product. That is the AIDA. The AIDA funnel has some tools which generate, stimulate, solicit, or ignite your specific step-by-step AIDA funnel moments. The first one: you want to grab attention. You write articles, neutral articles. You send or launch advertisements. You use PPC (pay-per-click search). You offer landing pages, and you offer webinars and podcasts. There\'s someone who has turned their mic on. Please turn it off. So there is attention, and you use those as examples of attention. As soon as you have attention, you grab the attention of people, you must generate interest. How do you do that? Web content, newsletters, social media, blogs, influencers telling you details---influencers are less and less effective, as we mentioned---email campaigns. What generates desire? White papers, e-books, beautiful digital and physical brochures, microsites. You\'re interested in the product; please land on the specific microsite, and I will give you much more appealing and evocative information. Action: case studies, witnesses, testimonials, referrals. These are actions. Let me give you, for example---I have to be fast because I\'m in the middle of the street, and I still have a little bit less than an hour and a half. What are promotional campaigns, communication campaigns made of? They are, generally speaking, made of a piece of the four, but some advertisements stimulate a little bit more attention. Some others stimulate a little bit more interest because they are based on information. Some are very evocative, and they stimulate your desire. And last, some are based on call to action. What is the call to action? This war in Ukraine: these two guys have lost their arms fighting. Please send us money. That is a call to action. And that\'s what I meant with referral and testimonials. These people, these little children are dying of starvation in Africa. Send vaccinations. Send five euros immediately. Immediately after that advertisement, you have a peak of people sending money. Then the people go down again, and it goes on the usual average amount of people. But if you send that call to action advertisement on TV, you immediately have a peak of reaction. That is call to action. Those are not the examples, but I gave you four examples based on my personal living and experience. I found myself in Brussels. I was about to attend a meeting. I was waiting for a bus, and then I found myself in front of this piece of---in the bus station, there was a wall. It was written, \"Six million dollars, 3M security glass,\" written in legal tiny words. \"Don\'t even try to break it. You will need a bazooka to break it. That is why we put six million dollars there.\" Did it grab my attention? Absolutely, yes. Did I buy 3M\'s specific security glass? Absolutely not. At the end, I didn\'t take action. I didn\'t desire the window, the glass. But it generated attention, and I did get information because after that, I really went there and checked over the internet if that piece of glass could be broken with a heavy hand. Because if that could have been broken, probably I would have gone and tested it. Of course, I\'m joking. Of course, those six million dollars were fake dollars; they were not true dollars. Otherwise, people with big trucks would have gone there, etc. But what is the idea? Nowadays, nothing grabs our attention. You need to have something which is very impressive. And in the video content, I gave you three videos where, if you click on those, you generate attention. You are somehow stimulated to pay attention to that. I put you an advertisement, which is a pair of Nike shoes in Tokyo with 3D videos. And you know what it generated in the first two days? A lot of accidents in the crossing, because people were driving, and they would say, \"Oh, what a beautiful---but what is going on?\" And they were crashing with their cars. So what is the secret? Advertisement in coherence and consistency with AIDA. You must generate attention. This is what generated interest in me. I was again in Brussels. IBM is a software, a computer---and it\'s a computer factory and a software factory, but it\'s also a consultancy IT company. And the advertisement was \"Smart ideas for smarter cities. IBM.\" And I said, yes, they grabbed my attention, but they also did grab my interest because I said, why is IBM promoting smart ideas for smarter cities? Are they making money out of it? Are they giving consultancy services? Are they selling computers which would make cities smarter because I can protect myself from rain with the solution that they will be providing me with? What is the idea behind? Did I grab not only attention but also get interest? Do you agree with this so far? Yes. Third one: again happening in my personal life. I was in New York City walking down. I was walking slowly because it was cloudy, 90% humidity, and 42 degrees Celsius. Then I saw this beautiful advertisement. Yes, they grabbed my attention, but no, I didn\'t need any information because I knew the product, and I knew the brand very well. But what did this picture generate in me? Immediate desire. Refresh on the Coca-Cola side of life. Now, out of the funny part, I wished to be in their apartment, drinking from a giant straw a huge amount of Coca-Cola. But you know, that generated desire in me. I really wanted to have a Coca-Cola. And as soon as you generate desire, what is the call to action? You go to a bar. Probably you don\'t buy Coca-Cola. Probably you buy cold water, or probably drink a coffee. I don\'t know. But this generates desire, of course, for this specific product. If you like it, for cold water, if you\'re like Coca-Cola and soft drinks full of sugar, or you cannot drink them because you\'re a little bit on a diet. But anyway, this is an advertisement that generates desire. But let\'s focus on call to action. The call to action is, as I mentioned to you---yes, yes, of course. Andrea, I fully agree with marketing, but very often I don\'t follow the---I don\'t agree with guerrilla marketing. I try to be as elegant as possible. Let\'s say this is funny. The IBM is a little bit, let\'s say, I would say, elegant. Guerrilla marketing is a little bit more focused on Coca-Cola. But this is more street marketing. Agree with Nuria because this is something that would generate a smile, not only an immediate comparison between products. I didn\'t like guerrilla marketing since Alitalia and Ferrovie dello Stato were fighting over the three hours from Rome to Milan, and they both applied guerrilla marketing. I totally disagree with that. That was one of the reasons why I left the company, to be honest, straightforward. Anyway, this is based on desire, and this does generate desire---creativity, unconventional methods to grab people\'s attention and to grab people\'s desire specifically. But the call to action is: do you want to be a superhero? Yes, everybody does. Spiderman, Superman, Batman, etc. We would love to have superpowers and to do something to make the world a better place. So everybody wants to be a hero. Even though I give blood every six months, I don\'t like to give blood because it\'s a little bit painful. I have to go there totally with nothing in my stomach. After they take away half a liter of my blood, I\'m a zombie for the next 40 minutes. It\'s something that I do even though I\'m not so happy to do it. I do it for social reasons, but I\'m not so happy to do it. Well, when I saw this advertisement, I thought this is a beautiful example of call to action. Who? You can be someone\'s superhero. Hellenic Association of Blood Donors. Spiderman and you\'re giving blood. I found this advertisement a beautiful example of call to action. I didn\'t show you the Ukrainian one because it\'s not so happy, but there is a picture hanging around over the internet with two guys with no arms who lost their arms during war---Ukrainian warriors lost their arms. Please support them. Give them money. It is another call to action, but definitely this is a much, how to say, it\'s more creative, provocative, funny, of course. And I decided to put this not because I want to improve your positive mood but because the call to action is exactly like this. You don\'t need to know what is giving blood; you don\'t get information; you are not attracted specifically, but this is a specifically made call to action. Having said that, I want to give you examples of traditional marketing. South Korea, they have these crazy 3D digital visuals or street billboards. Yes, and Jasper, and I gave you two examples, one in Tokyo and one in New York, and those videos are included in Give More video content, but they are coherent and consistent with this very attractive. So let\'s keep on going ahead. Traditional and specifically only traditional are some examples. Let me give you an example of traditional marketing. There is a beautiful product. They have an excellent e-commerce platform where nobody buys a car. It\'s an e-commerce; only a few people buy the car there because you want to sit in the car. You want to test it; you want to touch the leather; you want to eventually drive it, etc., etc. So what happened? That car dealers\' stores all over the world are big stores---2,000 square meters, a lot of cars there, beautiful location, a lot of renting costs, a lot of salespeople cost, a lot of energy, etc., cost. As a matter of fact, car dealer business model is ancient, is old, is vintage, is out of fashion. So what did Mercedes do? \"I want to sell more cars. In the car dealers, only 16% of people who go there buy a car. So the redemption rate is very low. What are we to do? We try to sell cars on e-commerce platform---no success at all.\" What did they do? If any of you knows, please remain silent. Yes, Antonio, that is word of mouth, but what did they do? They created a small, little, tiny boutique. You get into that beautiful boutique downtown in Rome, which is exactly behind Piazza del Popolo, so it\'s in the historical center of Rome. You go there; there is the sales manager, a lot of gadgets, a lot of movies, a lot of videos, a lot of digital interaction. They give you a beautiful pair of Samsung glasses. You wear those glasses, and at a glance, you can see all the product portfolio---beautiful cars jumping all over the place and speeding up like crazy, beautiful ladies driving cars, beautiful boys and girls speeding up, etc. And there is a digital experience. Then the guy or the customer takes off the glasses, and they say, and the customer says, \"I want to test three cars: an SUV, a station wagon, and a Class A.\" The guy says, or the sales clerk says, \"Okay, this is your voucher.\" You pull out of the store, you go outside Rome, where there is a private driving---what do you call it? Pista? A private driving location, and on that driving location, which is Toyota Motor City, it\'s not even Mercedes, you go there, and you find yourself in front of the three cars that you selected. And in those three cars, you can jump into those three cars, and you can enjoy, into a private driving track, all the experiences that you want. You want to speed up like crazy; nobody will stop you. You will not kill anyone because there is nobody in the private driving track. You can go back; you can go off-road; you can jump all over the place with the SUV. At the end, after you have tested those three cars, you can choose your own car. You know how much is the conversion rate? When a person goes to the boutique, he gives a look at the entire product portfolio, they select the three cars, they can test a real car in real driving experience into the private drive track, 70% of people buy a Mercedes car. So the redemption rate is absolutely higher, way higher. How did they experiment that? With a very old-fashioned approach: WOM. Word of mouth, network marketing, exactly that. Everybody started talking about this. You know that there is a new Mercedes store in Rome. People would come from Frosinone, Latina, from Milano, just to have access to a completely different way to experience the car. Because you go to the car dealer, there is this beautiful car there shining, but you cannot turn it on. You cannot run. Even if they give you a driving test, you must try with the guy beside you, in the middle of the road. If someone can hurt your car, can hit your car, etc. The driving experience into a specific location generated a big advantage. So there is a way to integrate marketing approach. Of course, traditional marketing is a little bit more relevant in this specific example, but the digital experience is there. You wear glasses; you enjoy, select the product, and then you go. Another beautiful example of traditional marketing. Do you know this product? This product is a beautiful Bulgari Super Octo Finissimo. This is the entry level. The highest priced costs over 1,250,000 euros. This is the entry level; it costs only 185,000 euros. You buy this watch, sell tons of them. They have a queue outside the door full of people who want to buy those watches. So they don\'t need to do any marketing. Probably word of mouth, probably network marketing, probably they do advertisement, a little bit of advertisement. Probably they send emails to their very loyal customers. Why do they have to invest money, creativity, innovation on marketing? There are plenty of customers. What do they do? You bought this 185,000 euros watch. You go home. After a couple of weeks, you receive a phone call. \"Good morning. My name is Maurizio Domenico. I\'m the marketing manager specifically dedicated to your needs.\" \"What do you mean by that?\" \"You bought a beautiful Bulgari Super Octo Finissimo. Do you need information on how to maintain it, how to clean it, how to keep it functional, how to keep it operative, how to---in case it falls down on the floor---how to repair it, etc.? I\'m here. I\'m fully available.\" \"Thank you very much. I will maintain it. I will eventually use your advice, etc., etc.\" Furthermore, Maurizio di Domenico will tell them, \"If you\'re rich enough\"---they don\'t say this specifically, but the message is---\"you are rich enough to have a beautiful safe in your home, and you\'re rich enough to next summer spend two months\' holidays touring the world with a beautiful sailing boat. If July and August you are touring the world and you\'re not carrying the Super Octo Finissimo with you, if you---free of charge---we will go to your home, pick it up from you, or you can come and bring it here, and we will keep it in the Bulgari safe in Via Condotti, where not even a bomb from Mr. Putin will be sufficient to break the safe. We will keep it at ours. We\'ll keep it clean, maintained, updated, fully operational, and most importantly, no one will steal it. If they will steal it, we will give two of those to you instead of one.\" Now, why all this marketing approach? Because next time that very rich owner of a Bulgari Super Octo Finissimo will think about purchasing another watch, next time his son, daughter, partner will ask for a watch, what is the first brand that will pop up in their minds? Absolutely Bulgari. What is the final aim of classic traditional marketing? Exactly the same. I found the ICP. The final aim is I want to have you a loyal customer of mine for the rest of your life. The more years you spend with me, the happier I will be. Do you agree with me? I\'m not talking to myself, right? Good. Okay, I keep on talking, and I forgot to give you a break. I was supposed to give you a break at 7:30. Do you need five minutes just for a coffee, and then we rush for the final hour? If you want, I can keep on talking. I have a lot of things. Okay, so 10 minutes. Five after eight sharp, I need all of you to be here online again because I still have quite a bit amount of information to pass to you. Great, rock and roll again. Okay, good. So we start again. Classic traditional marketing. No internet, no digital, no nothing, but still very effective. Bulgari doesn\'t need to have a marketing campaign, doesn\'t need to communicate, but they do. They strive to make customers loyal to the company, to their brand. Not that they need it, because probably by the time they would find new and more---let\'s say new and better---better in terms of richness, better in terms of spending availability---new customers. But the idea is I want that customer to remain loyal to me at maximum extent. If that is clear to all of you, I will talk about a few more other activities. And we talk about Dove. Why is Dove doing an outstanding marketing campaign, a clever marketing campaign? In 2003, Dove launched this marketing campaign. What was the input? They requested feedback from customers, and it came out that especially in the United States, the common perception is a woman either is as perfect as Angelina Jolie or she is nothing. There is nothing in between. Either you are beautiful, super perfect, everything is perfectly sized in your face and body, etc., or you feel like you are nothing. In 2003, Dove started this campaign, which won a lot of prizes, a lot of rewards, and a lot of---they got a lot of recognition. The idea was even if you are not beautiful, even if you\'re not perfect, you\'re still beautiful. So the campaign was \"Wrinkled or wonderful, fat or fit, gray or gorgeous, flawed or flawless.\" \"Gray or gorgeous\" is something that I love, not because my hair is gray, but because in the early year 2000s, everybody---all women---were wearing painted or at least that would cover gray hair. The idea that a woman would be gorgeous with gray hair was really, how to say, a big news. For me, it was really involving the fact that ladies would be wearing gray hair gorgeously. That was a beautiful thing. So they started with this campaign; they were very successful. And of course, the campaign was traditional---a lot of advertisement, a lot of investments---but let\'s say not much focus on the digital world. Then something happened in the United States. In 2016, girls would use a very easy app to reshape their face, to make their faces beautiful. Then they would send beautiful pictures to partners and boys and friends and other girls and everything, and they would look like they were perfect. But as a matter of fact, they were not, because in real life, they were not. And as soon as some of them were refused because their face was not perfect but the pictures they would send around were, as a matter of fact, some of them, many of them, committed suicide. So it became a kind of social issue. This lady, this young girl is beautiful, even though in the picture on the left, her face is, let\'s say, normal, with the typical skin colors and normal hair, etc., but she would keep on sending around the right part of the picture. So she would find herself sooner or later into a gap between public perception of her beauty and personal perception of her beauty. So Dove never talked about product---\"My shampoo is better; it makes you look better,\" etc.---but they started saying, \"Let\'s stop retouching apps from blurring her confidence,\" and that took place in 2016. Now again, I don\'t have time to show you this video, but you have it at a glance as soon as you will be receiving the material, but this is a completely new statement. What is nowadays\' advertisement from Dove? Dove is stating, and that is absolutely and sadly true, by 2025, 90% of internet content will be created by artificial intelligence. So you ask artificial intelligence, \"Please show me a beautiful woman.\" Artificial intelligence shows you a perfect but not existing woman. Then you ask AI, \"Please show me the beautiful skin of a woman,\" and again it pulls out a beautiful video of perfect skin not existing in real life. And then you write, and this is the Dove statement, \"We are so strong in the market with the real beauty perception that if you ask artificial intelligence, \'Show me a beautiful woman according to real beauty or according to Dove,\' even artificial intelligence will show you beautiful women but not perfect---standing on a wheelchair, North Afro-American women, women with not perfect skin texture, etc., etc.\" So Dove\'s statement is, \"We have been doing so much communication based on the fact that women don\'t have to be perfect to be beautiful that even artificial intelligence is forced to acknowledge that, based on Dove\'s vision, ladies are not perfect but still they are beautiful,\" and they show a lot of pictures of girls who look at advertisements and they say, \"This is Dove. It shows me real-life beauties.\" So I will buy, and I\'m willing to pay premium price because of Dove. If also that is clear, and I have to speed up a little bit, this statement is very simple. Based on Dove, on Bulgari, on all the advertisement and communication that I showed you, the idea behind is Apple does not sell hardware; they sell exclusive and innovative products for people who strive for individuality and innovation. Mercedes does not sell cars; they sell status. Gucci doesn\'t sell clothes and belts and T-shirts; they sell absolutely luxury, like Louis Vuitton, etc., etc. Exactly. Nuria has already downloaded the Dove commercial. Hopefully, this is the one, the very last one, the one 2024 that I showed you in the presentation. Let\'s see if the final is---no. But anyway, it\'s something similar. Please give a look at it. But again, I didn\'t want you to see the advertisement before. I didn\'t want you to see the advertisement now because you will be distracted. The message is Dove customers are willing to pay premium price to Dove not because shampoo cleans better than any other shampoo but because Dove\'s company has focused for the last 25 years on real beauty. You don\'t have to be perfect to be beautiful. You can be fat or fit; you can be wrinkled; you can be gray-haired, etc. You don\'t have to be perfect to feel beautiful, okay? So yes, you will get the entire set of videos. That\'s the new one. Okay, let me speed up because I have only 45 minutes, and again, it\'s not a matter of slides, but it\'s a matter of message. The most important strategies that we are---Ps in the marketing mix---that we have to apply, we mentioned that yesterday, are related to product and to placement, to distribution channels. That is why I\'m focusing here. And again, this is a provocative picture. Why do we still talk about five product-level model generated by Mr. Philip Kotler 45 years ago in the early \'80s? Why bother with that formula? Very simple. In order to keep your customer loyal, you don\'t have to only be like Bulgari implementing marketing strategies related to communication and to promotion to keep customers loyal. What do you do? You issue, you generate five products: iPhone 16 Super Pro Professional Super Whatever You Want to Call It, and that is the premium product. Then you have the same 16 SE for people who really want their product but they cannot afford to have it. What is the idea behind? You generate the bigger iPad and then a smaller iPad and then the Super Pro and then a normal iPhone 16 and then you reduce little tiny one. Why do you want to do that? Because you want to cover every single market, every single segment? Yes, absolutely. But also because---as you will understand at the very end of the product-related slides---you differentiate because you want to keep the customer loyal and yours. Let me explain how. The core product, or basic product, focuses on the purpose for which the product is intended. For example, an iPhone with basic functions: you make phone calls, use email, send WhatsApp messages. The generic product represents all the qualities of the product itself. The expected product refers to all the features, added values, and brand image that the customer is expecting to receive. The augmented product refers to all the additional factors. These additional factors could be a super beautiful car. Some people, even though they are buying a super beautiful car, fill it up with accessories of different colors, with options like an opening roof. Think about a Mini; the Mini is already a nice product. But consider a roof with the Welsh flag, mirrors with the British flag, rear lights with the Scottish flag---everything made to individualize that product, to make it specifically tailor-made for a majority of people or a vast audience who would eventually enjoy it. Lastly, what is the potential product? It is the product that you will be expecting to arrive as soon as you\'re purchasing a product. You might think I\'m crazy---that this is just smoke---but there is a specific, perhaps not scientific, but a specific skill generated to have loyal customers. How do you do that? Let me show you. A pair of Nike Free Run 2 Plus shoes. What is the basic product? What is the core? The barefoot experience---I run with those shoes; they are so comfortable that it feels like I\'m running with nothing on. Stronger foot and leg muscles to reduce injury---that\'s the generic product. Then, quality durable shoes, comparably priced higher, are the expected product. The augmented product is flexibility in options and apparel: blue with white stripes, pink with gray stripes, etc. But what is the augmented product? That pair of Nike shoes was made 10 years ago with basic, generic, and specific features. What is the augmented product now? The Nike Free Run 2 Plus today is sold with a SIM card that you insert into the shoe. You go running with the pair of shoes, then you take out the SIM card and put it into your computer. The SIM card tells you how many kilometers you have run, how many calories you have burned, last week\'s performance compared to this week\'s performance, etc. And you know what? The Nike Free Run 2 Plus will be out of the market in a few months. Why? Because that product was substituted with a smartwatch issued by Nike. With the smartwatch, you don\'t need to wear Nike shoes. You can go barefoot or wear another pair of shoes from competitors. But with Nike\'s beautiful smartwatch, you will be measuring calories, heartbeat rates, how many kilometers you run, humidity, whether it was raining or too dry, so you had to slow down a little bit. That is the augmented product. Let me give you another example, and then I will give you the last one: Bluetooth in-ear pods. The basic core benefit is good sound; I have to hear well what my friends are telling me when I\'m on the phone, and I must be able to listen to music with good sound quality. The basic product is a comfy pair of AirPods, a box, and a cable that would recharge those earphones. The expected product: I expect it to be good in terms of qualitative or constructive quality, long-lasting battery, and good design that fits into my ears. What is the augmented product? Easy-to-control pods, immediate responding, functioning very well. And what is the augmented product? You know that in a few months---and probably they\'re already out in the market, and I\'m not an expert because I don\'t pay attention to this specific product---there are earphones from competitors like Samsung and Xiaomi that you can lower or increase the volume simply by moving your hand. They have a sensor that understands if you\'re increasing or decreasing the volume. You do something like this, and it closes down communication. That is the augmented product. But let me show you a beautiful product which will be augmented in just a matter of a few months. Is this connected also to the topic of the Kano model? Yes, but again, I don\'t want to sound too professorial, too methodological, too theoretical. But the product---the five levels of product based on Kotler, Philip Kotler---generated the Kano model and several other models. What is the product that you\'re looking at now? The beautiful Apple Vision Pro? Well, big glasses. This big band over here weighs over one kilo. After an hour of watching or working with that computer---because it\'s a computer that allows you to move things with your hand, to open up icons, to write down documents, etc.---I also inserted here the link to check the video. It has a big long cable with a big and heavy battery. You know that even though it has all these side effects, they sold this product for \$3,499. It has two RAM memories, a lot of video capabilities, and a lot of technology synthesized into this big pair of glasses. You know how many they sold? They sold 4 million pieces. If you multiply 4 million pieces sold all over the world by \$3,499, you get the total amount, which is an enormous revenue. But you know what? They are telling the market that very soon they will cease operation---not only because they\'ve already sold all the glasses that they\'ve planned to produce, but because the augmented product is these very glasses. In two years\' time, all that big, heavy thing will be miniaturized into a normal pair of glasses---probably not as small and light as this one, which is aluminum and very light because they allow me to wear them all day long. But as a matter of fact, they are already promising you that the product will be completely different. And I\'m posing a provocative question: In order to win, must products constantly evolve? Is that true? Or better yet, is that always true? In two years\' time, you will be wearing glasses, and you will not need computers and smartphones anymore to send messages. By wearing glasses, you will be moving icons, and you will be sending an order to Amazon, and you will join an auction with eBay, etc., in a matter of a few months or years. But do products have to constantly evolve to win over competitors? I\'m being provocative. Nobody\'s answering because you\'re all tired or because you have no idea. You\'re still there, aren\'t you? Okay, well, Andrea, you already attended one of my courses, so I\'m kicking you out of the course. I\'m joking, of course; I would never dare. It is not true at all. Think about Bic pens: 1955, 1985, 2025---it\'s always the same. Think about Nutella cans---it\'s always the same. Think about Coca-Cola---even though Coca-Cola tried to change a lot of times. And the last fiasco of Coca-Cola was perfectly described by a Pepsi Cola ad. You know that in the United States you can do comparative advertising, right? There was an old guy. After a day of work, he was completely sweating because he was working in the middle of the street; it was hard work. He went to a bar, completely exhausted, and he said, \"Barman, please give me a Coke.\" And the guy said, \"What Coke do you want? Cherry Coke? Zero Sugar? Coconut Zero? Calorie Coke Classic?\" And the guy was confused and said, \"Come on, give me a Coke.\" So the guy with a big smile said, \"Okay, I will give you a Coke,\" and he gave the old, exhausted, frustrated guy a blue can---Pepsi Cola. You know what happened? Coca-Cola killed the Cherry Coke product, reducing it to three products only: Classic, Zero Sugar, and Zero Calories, and that\'s it. It reduced from five to three because sometimes evolving the product is equivalent to losing a business opportunity. So yes, this product must evolve because it\'s too heavy. Even though it costs \$3,499, it was sold in 4 million pieces. Sooner or later, it will be miniaturized into this one. So they must---some technological products must evolve. But some can afford not to evolve, such as Bic pens, Nutella cans, Coca-Cola, or Bic razor blades again. Why do we talk about all this? Because today, the only thing that must change is the evolution of a product. The product nowadays does not exist as an intrinsic value proposition alone. What is the product today? The product is an experience. Products become services become experiences. Products have become commodities---something very easy to find in the market. But at the end of the day, the difference is customer experience. What is this lady doing? Is she using an iPad? Of course, she\'s using an iPad, but the iPad is not the center of attention. The center of attention is her face, smiling like crazy. She\'s in downtown, city lights behind, but she might very well be everywhere in the world---in Tehran, in New York, in Johannesburg, in Tokyo, in Palermo. Everywhere on the planet. What is she doing? She\'s sending an email. She is winning a prize. She\'s sending a message to her best friend. She won the lottery. She\'s quitting her job. She\'s hiring somebody. That is exactly the final destination. You buy a product because through the product you are enjoying an outstanding experience. I know that Pepsi is very aggressively doing this because they don\'t want---or the added value is that Pepsi is still in blue cans, still very tasty, very beautiful, but it has never reached, in terms of market share, the market leadership Coca-Cola has generated over the years. So what am I asking you to focus on? Product evolution, yes, but product evolution means paying attention to: I buy a tablet because through the tablet I\'m enjoying an outstanding experience. So I\'m not willing to buy a tablet itself. I\'m using the tablet, and I\'m interested in investing my money because I want to buy something that will make me feel much better in the middle of the street, in the dark night, sending a message or receiving a message, closing a deal or finalizing a negotiation, or participating in an auction, or simply receiving a beautiful smile and heart from my partner. That\'s about it. That is the secret. But let us talk about companies which did their homework; they understood why we should buy from them, and they perfectly focused on their ICP, basing it on an experience. The company I will be introducing you to is a company---a startup---which through an app sold an experience. Not a product, not a tablet, not a service. They don\'t give you a service; they put you in a condition to enjoy an experience. Okay, the doctor probably will be shocked, but there are people who started this business, and they were able to resell that app to Apple for \$1.2 billion. And you know something funny? Even today, Apple purchased this app for \$1.2 billion, and that app is downloaded by an average of 5 million people per semester. That means 10 million people download it on an early basis. The app---Problem Manager, not \"lend\" but \"end,\" you take away the \"L,\" sorry for the mistake---Manager. Generally, busy people think that they have no time to attend the gym. I\'m busy; I am running three jobs, and then I have two children living with me, another daughter, 25, living outside that I want to visit and see from time to time. I don\'t have time to attend the gym. Okay, you don\'t have time to attend the gym. Screw that; deliver an experience so you can attend the gym always and anywhere. Am I talking about something crazy? Am I provoking your reflection? Yes, I\'m provoking a certain reflection. What is the reflection? This company, the name is Gymless Full Fitness, created an app. You buy it, you download it, you are in a hotel---and that is a hotel in Kansai, in Osaka---and you download the app. You ask the app, based on the picture of the hotel, to give you hints, and the app tells you how to do Bulgarian split squats on your bed, how to do push-ups in the bedroom, how to do chair abdominals, chair dips on the chair, how to do incline push-ups for your triceps on the table, how to do decline push-ups for your muscles here, in the chair, etc. Gymless Full Fitness was an app sold to Apple for over \$1.2 billion. That app is downloaded by 10 million potential users---yes, a fitness app---10 million people downloaded it in the United States. Do they use it? Not all 10 million. Do they have it and keep it, and, how to say, turn it on when they are in the hotel or when they\'re in the office or when they are at home? Yes, they do run the exercises. Out of 10 million, probably ten thousand, one hundred thousand, one million, half a million---I don\'t know; nobody knows. But the idea is I\'m selling you an experience. You\'re in the office; I will give you---of course, you click on the Bulgarian split squat, and they will show you how to do that. You click on the plank, and they will assist; they will show you how to do planks there, incline push-ups, decline push-ups, mountain climbers, hip extensions, etc. What are they selling you? Absolutely nothing. It\'s very close to manipulation. I have nothing against it. I said to you, we are not talking about ethics; we are not talking about politics here. This is a value proposition; this is a service. This is not a product; this is an experience. And this company still benefits from 10 million people downloading the app, almost one million people downloading the app per single month in the United States. And that is why their business experience and the startup company were very successful. Is this message clear? Am I being provocative enough to make you think how creativity, innovation, thinking outside of the box can be effective if all the things are valid? Let me talk about distribution channels at the very end, and we focus on distribution channels the way they should be. Let me give you an example: traditional, good old-fashioned brick-and-mortar store. I have a store, a physical store that repairs shoes in Rome. Okay, you bring to that store---you give me your shoes. I repair them, I clean them, I refresh them, I give them back to you. Okay. Does this store exist? Absolutely yes, professor. A lot of them in any city in the world. Okay. Can that brick-and-mortar store afford not to have a website? Nobody can anymore, not even the small, little, tiny shoe repairing store. There are plenty of stores that cannot afford to have a website, but they must have it---very simple. Why? Because if I\'m in the middle of the street and my shoes get broken, and I need to repair my shoes, what do you do? \"Shoe repair store near me.\" Is that true? You don\'t ask around if there is a shoe repairing store; you Google it. So if that store doesn\'t have a website, if he didn\'t pay Google to have a Google Maps address, he will never grab another potential customer who uses smartphones in order to get information. So nowadays, nobody can afford not to have a website and not to have an email account. It\'s as simple as that. So what is the idea behind traditional, good old-fashioned brick-and-mortar stores? That store has one physical store, one email address, and one website, and that is multichannel. The channels are not connected. Why? What do we mean by omnichannel? Omnichannel is I have everything at a glance on the website. I have an email account, I have an e-commerce platform, I have the physical store, and I have images on Pinterest. I am leading a group on X (formerly Twitter), and I have a lot of followers, and I show you things on LinkedIn and everything---omnichannel. Then you buy at a physical store, but you also buy from my e-commerce platform. You buy three things, and you leave two things in the trolley. After three days, what happens? A message to you, dear Maurizio: \"We noticed that you bought three beautiful pieces. That\'s fine, thank you very much, but then you left two more in the trolley. Did you forget them? Please take into consideration that after one week, they will disappear, or someone else will buy them---they will not be available anymore. Or do they cost too much? Let us give you a 10% discount. You decided to buy them next month? Okay, let us keep them available for you in the month of November. Three days, five days---today is the 29th; in a couple of days, you will jump and skip into November. Call us back in November, and we\'ll be more than happy---or contact us in November, and we\'ll be more than happy to give you those products.\" That is the omnichannel experience. Everything is included, integrated into the omnichannel experience. Nowadays, companies cannot afford to have only a static website. Let me ask you a question, but don\'t answer because I know the answer very well, and you know the answer. If you surf the web, you land on a web page of a good company, but written in very small, tiny letters: \"Last update: November 2022.\" Oh, come on, they died. They went bankrupt; they died of COVID. They do not update the offers. Probably the site is nonexistent, or the company behind the website does not exist anymore. Do you buy from that website? No, nobody would. So what are we putting on the table? Your beautiful website must be beautiful, appealing, sexy, interesting, intriguing, updated. Last contact, last updates 24 hours ago. My special offer is based on products available in the warehouse on October 29th at a quarter to nine. That is the product; that is the offer; that is the intriguing part of the offer. So the website must be updated, must be intriguing, interesting, appealing, etc., but must be updated. Special offers must be included. If you run a special offer on your website, you must also offer the same conditions in the store and on the e-commerce platform. You\'re using a beautiful e-commerce platform---your own. You must keep the special offer updated. You must keep availability in the warehouse: \"I only have three pairs of those beautiful pink shoes. You don\'t have time to buy them; you might be running out of those. I have to inform you.\" And most importantly, all those things must be fully integrated. You need to have someone---and the name is not Gianni---some marketing people who will deal with digital marketing and will not only refresh the website and e-commerce, etc., but will be in a position to say: \"Maurizio Di Domenico purchased all the five products in the trolley. Okay, let\'s forget about him. Let\'s hope he will come back next year, October, November 2025.\" You cannot afford it. You need to have customers who eventually will come and buy from you next month, next week. So what do you do? \"Dear Maurizio Di Domenico, thank you for purchasing. You have very good taste. You enjoy the blue, which looks exactly coherent with the scarf, with the tie, and with the shoes. You know what? You have very good taste. Let me give you another 25% discount coupon for next month, within the month of November. If you buy anything from my website, my e-commerce platform, I will give an outstanding further 25% discount.\" Omnichannel is---uh, the omnichannel is everything integrated. Exactly. I\'m telling you now, multichannel is---you have social, mobile, web, and store, but they always sell something different one from the other. That means a website makes a special offer for loyal customers on the website, but then that 15% is not applied also in the physical store. There are companies which decide to do this specific multichannel campaign. What is sold in the store does have a different cost structure, so the cost is different, the discount is different, the availability is different. Multichannel is you go to the store; you get exactly the same conditions that you would eventually receive on my website, on my e-commerce, etc. The integrated, seamless approach of omnichannel is of paramount importance. It\'s exactly there; everything is integrated, seamless, and is an experience that you would buy my shoes in the store, on my website, in the e-commerce, and furthermore on Amazon. Natural website is absolutely indifferent---25 euros; you come to the store, 25 euros on my e-commerce, 25 euros on Amazon. That makes product consistency absolutely valuable. Not always, and not everybody does so. Very often, you find yourself in front of a multichannel experience because companies tend to keep them separated. On my e-commerce, you can buy for 100 euros; then you go to Amazon, you find exactly the same product for 95. Where do you buy? By doing this, companies are killing their own website, and when you\'re killing your own website, you\'re killing a lot of investment, but also you\'re becoming a prisoner of Mr. Amazon. Because sooner or later, if Amazon will request you a commission from 15% to 25% and you don\'t have your own e-commerce platform, you\'re tied like this; you\'re imprisoned, you\'re in a cage, you have to depend upon Amazon. A lot of companies made this strategic choice: \"I\'m not investing in my e-commerce; I\'m not investing in my website; I\'m investing in physical stores and Amazon.\" Believe me, Amazon---I work for Amazon as a consultant---is not there to be social; it\'s there to make profit. The final aim of Amazon is to become the benchmark of our lives. Even if you will be buying a pair of beautiful shoes in the physical store, you wake up in the morning, you desire a pair of shoes, you click and you press the button Amazon.com, and you understand availability, pricing, etc. Has it ever happened to you that you go to a hotel because you lost the train, you lost the aircraft, you lost the flight? You go to a hotel, you go to the desk, and you say, \"I\'m here; I\'m still in Milan. I was not supposed to be here; I was supposed to be in Rome. How much is one hotel room?\" And the guy or the girl---the clerk---would say, \"I will tell you 150 euros.\" While you are still talking to the guy, you are going on Booking.com. You go there and you show the guy: \"Listen, you are offering me physically here 150. If I buy it from Booking.com, the price of exactly the same room is 110. What do you want to do?\" What is the response from the clerk? \"Okay, I will give you 110.\" What is the output in terms of image? The hotel is not serious because if I go there and I buy the room directly, it\'s supposed to cost less than through an intermediary whose name is Booking.com or eDreams or whatever. So what am I putting on the table? The big limit of multichannel is the channels are not integrated. In order to have full coverage of the digital world, you need to have an omnichannel distribution strategy in place. Are you getting the message? I still have eight minutes, and I want to show you something. Is it clear enough for everyone? It is of paramount importance for you to understand that nowadays, the omnichannel is the only way. You might say, \"But professor, it costs a lot of money.\" Yes, point taken, I fully agree with you. On the other hand, in the business world, omnichannel is the only way to keep independent business. If you rely on Amazon, eDreams, Booking.com, Expedia, whatever---all the intermediaries---sooner or later, you will keep the multichannel approach and you will lose pieces of business. You need to have an integrated omnichannel. \"Big companies take out the middlemen.\" What do you mean, Dimitri? I don\'t know what you mean. But yeah, Booking---the middleman---is intermediaries. I agree with you. Either you take it away, but somehow you cannot afford it because Booking.com is one of the most visited websites on a daily basis. How can you afford to take it away? So eDreams, Expedia, etc.---they are so strong nowadays that somehow you cannot afford not to stay there also. If you stay there offering a room at a lower price than your website, sooner or later---exactly. Airbnb was exactly the same. And look at the advertisement on Airbnb. Somehow they are competing with their booking, and they\'re saying, \"Prefer to go with Airbnb because you will find a house, you will put your children to sleep, and you will enjoy the rest of the night. You go to a hotel, you sleep all in the same room; you must sleep; otherwise, your children will wake up.\" So there is exactly---okay, middleman businesses are very profitable, low cost, but they are the weak chain, the weak ring of a chain. Please remember that. So omnichannel---I strongly advise each one of you to implement in your company an omnichannel experience for your customers because you will keep everything under control. You can still have promotions with eDreams and still be captivating customers whenever needed. Lastly, disruptive distribution channels. This is some window shopping with in-window technology. If any of you live in Denmark, Norway, Finland, or Sweden, you might have already seen it. What is the issue? Or let\'s start from the pain point. Why are you not so happy to get into a store? Two reasons. If the store is empty, probably they don\'t have good products at competitive prices, number one. Number two, if the store is empty, the sales clerk, as soon as you get in, will come stay close to your neck and say, \"Good morning. What can I offer you? How can I help you? What is it that you need?\" Very aggressively or even non-aggressively, but they will follow you like a shadow. I don\'t like that. If, on the other side, the store is crowded, full of people, you have two advantages. Number one, if a store is crowded, they must be selling good products at competitive rates. Number two, I don\'t like to have that lady or that guy behind my neck. I will have plenty of space. Yeah, I know COVID boosted this kind of shopping but anticipated what I say to you that very often if the products are good, a lot of people are inside. Well, that one app in Finland---I don\'t think so---is the other way around. A lot of people are purchasing more and more, increasingly on cyber shopping. What is this? With the in-window technology, you remain outside of the store; you select a sweater, you select a scarf, you select a beautiful pair of white pants or a skirt, etc. You select the colors, you select the sizes and everything. Then you have three choices: Number one, you get into the store, you pay for the products, you pick up the products, you go away. Number two, you ask the computer to send those products to your home; you don\'t even get into the store. As soon as you get the product to your home, you will find a way to pay---credit card, anything. Third thing, you leave the products in the database; you give them your email account; they will keep those products in the warehouse for you whenever you will make the final decision. Cyber shopping with in-window technology is very fashionable and is becoming, let\'s say, an appealing way to do shopping because you don\'t need to get into the store; you don\'t need to queue online just to make a payment, etc. You can make up your mind, and there is nobody keeping on asking you for information. Wolf, you are the only one that I\'m linked with on Finland; there is a good distinctive option. So cyber shopping with in-window technology is becoming increasingly interesting. And yes, it\'s right---some of you said, Dimitri said COVID boosted this kind of shopping. Very much so. In a lot of countries, in-window technology has become a way to do shopping. The second example is very common. This is a metro stop in Milan, Cadorna. I\'m sorry if the picture is not very clear, but imagine you\'re waiting for your metro. You pick up a QR code coupon---it\'s a digital coupon. Then you go to the supermarket and buy specific products, enjoying a 60 or 40 cents discount. While waiting at the metro station, you can conveniently select discounted products you\'re interested in purchasing instead of going down to the supermarket and looking for them. This is another way. This method is very common in big cities in Japan, Korea, and China. For instance, the man in the gray sweater is selecting products with his smartphone, but those products are not physical because, as you can see, someone is getting onto a train. There\'s no physical shelf; it\'s a digital shelf. In Tokyo, many workers and salespeople live outside the city, much like Lombardy is a big region. A lot of people take a one-hour train just to go sleep outside the main area of Tokyo. So while you\'re waiting for your train, there\'s a shopping wall---a digital wall, a LED screen like a television. As you can see in the right picture, people are selecting QR codes and purchasing products. They pay with their smartphones. As soon as one and a half hours later, when they arrive in Yokohama, Shinjuku, or other satellite cities of Tokyo, they find the products in a secure box with a digital number. They enter the digital unlock code, open the box, pick up the food and drinks, and go home. They don\'t have to go to the supermarket, queue in line, pay the cashier, or anything. While waiting in the metro station, they selected the products and bought them. The picture at the bottom left shows a pharmacy in Shanghai. This pharmacy is applying exactly the same formula. It is not a physical pharmacy; it\'s a location in a mall. There is no actual pharmacy there. You go, and you select some basic products that don\'t require a prescription or medical advice. They are purchasing basic pharmaceutical products, and that is very common in Asia. Very soon, it will become very common in some major American cities. Before 2030, it will be widespread in Northern European countries like France and Germany, and probably at a slightly slower pace in Italy, Greece, and Spain. Is this clear? Is this the distribution channel? Think about all the benefits. I don\'t need to have a big store or a big supermarket anymore because you can choose and select the products. I need to have a big warehouse, which I already have, but I don\'t need a big store. You place the order, and I will have a young person with a motorbike---guy or girl---delivering the product. Or I will send a message to Yokohama, and I will say to my business partner there, \"Please select two bottles of wine, some beef, and two bottles of milk, and deliver them to Mr. Kanisawa living in Yokohama, very close to you.\" Content like self-checkout shopping experiences---Amazon has Amazon Go, self-weighing shopping carts, etc. I didn\'t include this in the picture because that is more of an immediate supermarket. Distribution will involve products being delivered by drones. But think about all the advantages: you don\'t need a physical supermarket with a lot of employees, high energy consumption for lighting, rental spaces, etc. Purchasing will be more immediate, intuitive, and easy. People will find a plastic bag with their food in front of their homes. They won\'t have to pick up all the products themselves. Distribution would be much more spread out, and you won\'t need to go into a big warehouse or supermarket using a car. You\'re eliminating a lot of hassle and polluting less. \"What do you mean, an issue?\" Dimitris, only in some areas. Yes, of course, it\'s moving forward despite concerns about people stealing food. But in Tokyo---and this already took place 25 years ago---people had in front of their homes a kind of metallic box with a five-digit security lock that you could change every day. If you didn\'t know the five digits, you couldn\'t open the metallic box. So they would receive their Amazon deliveries there. Nowadays, the security issue can be easily addressed with physical solutions. I understand the point, but it can be easily bypassed because people---the delivery guy can leave my package, and he does. As a matter of fact, I receive a lot of books and materials from Amazon, and I receive them in a metallic box in front of my home. Just to cut a long story short, there\'s Good Box with Saloon. You\'re a busy businessman traveling from Bern to Lugano, from Lugano to Zurich, from Zurich to Geneva. You leave your shirt in the Good Box, and you pick it up ironed and clean nine hours later when you\'re back. You forgot to give a present to your wife, and today is her birthday. You order flowers or a small present, and you say to the company, \"Go to Good Box number 19, press 1-2-3-4 as the security lock number,\" and you enjoy the product. Good Box is very common in Switzerland. Freddy is a virtual showroom. You\'re attending a gym, and you forgot your pants or your T-shirt, or you don\'t like your T-shirt anymore. You open up Freddy\'s window and place the order. If the gym has the product in stock, it will deliver it immediately. If they don\'t have it, Freddy will send it to you comfortably at home. Simulation software was also boosted during the COVID period. People don\'t like to wear sample clothing that you find in the store. So you select the product without even touching it. You go in front of this simulation mirror, and the mirror---which is actually a camera---shows you the possibility of having it fully dressed and tried on your body. You\'ll fully understand if it\'s suitable for you, if it makes you look thin or fat, etc., and you\'ll be able to enjoy that. Please always remember: as I told you yesterday, a satisfied customer is the best marketing strategy of all, and therefore the best business strategy. These things will make your customer happy, and you happy as a customer, if you consistently focus on each and every part from traditional to digital into integrated marketing. Remember the omnichannel approach: you offer an entire set of services, products, and opportunities. Your customer will be the happiest one in the world. I am five minutes late; I hope you don\'t mind. But as you\'ll notice, I had quite a lot of things to tell you to make the course complete, in order for you to get all the information related to traditional and digital methods. If everything is clear, I thank you very much and will set you free. If things are not clear, you will find my email account on the first page of the presentation and in my contact information in the video, and you can send me questions. More importantly, please use the class coordinator to accumulate questions, criticisms, comments, etc. I hope you will enjoy the remaining part of this master\'s course, which is very interesting and involving---in my opinion, of course, and not only because I run one of the several modules. So thanks to all of you. Enjoy an outstanding future and make the world a better place to live. Thank you. Thank you. Thank you.