RBS Marketing Traditional & Digital 1 Notes PDF

Okay, welcome to all of you. This is the first module, and we will be focusing on the second part of this presentation tomorrow at the same time. We are starting the recording now. Welcome. My name is Maurizio Di Domenico, and I will be responsible for delivering a master class divided into two modu...

Okay, welcome to all of you. This is the first module, and we will be focusing on the second part of this presentation tomorrow at the same time. We are starting the recording now. Welcome. My name is Maurizio Di Domenico, and I will be responsible for delivering a master class divided into two modules of three hours each, in which we\'ll be discussing what traditional and digital marketing are all about. I don\'t have time to ask all of you where you come from, what your cultural background is, your study experiences, etc., or if you\'re already active in the work environment or not. But I made sure that the content of this module responds to each person\'s needs. So I will be focusing on the ILOs---that is, the intended learning outcomes of this module. After this module, you will be able, hopefully, to define, describe, explain, identify, discuss, and pinpoint the best strategies for each of the four Ps. Today, we will be focusing on a marketing approach that is not generalist but general. That means it is focused on any industry. It is starting from scratch in order for you to fully understand what the opportunities of marketing---both digital and classic traditional---could eventually be. And of course, I will be focusing at the very last part of the presentation---so tomorrow evening---I will be in a position to give you advice on an integrated way to define marketing strategies and to implement them. Hopefully, you can still hear me. I don\'t like to give slides beforehand. The reason is very simple: I would like you to have the so-called \"wow effect\" or surprise. I need you to reflect upon it in the meantime. So, this evening, immediately after this module, we will be uploading on the Blackboard the slides of this presentation---but not the ones related to tomorrow, because I don\'t want you to go through and read them. Not because I don\'t want you to be prepared, but because I want you to fully understand me first, have a good exchange of information first, and then eventually you can review those slides. Also, because you\'re kindly requested to assimilate a few, if not all, of these concepts and topics. So, let\'s start right away. My name is Maurizio Di Domenico. Professionally speaking, I started working in 1990. I joined Alitalia, which used to be the flagship airline of Italy at that time. I first joined in May 1990 as a junior HR manager. After four years in HR management---since a few years before, I graduated in Canada in 1982. From 1994, I moved to commercial, to sales and marketing. In 1994, I joined Alitalia Brazil, and I was a young trainee. I had the responsibility to deal with tour operators in Rio de Janeiro and São Paulo. After one year of training on the job, I moved to Frankfurt in Germany, where I was marketing manager for a couple of years. Then I moved to Japan and was sales and marketing director for Japan. We had 10 flights a week from Tokyo and 5 flights a week from Osaka. I spent the 4½ best years of my professional life in Japan. After that, I moved back to Frankfurt and was responsible for the entire business of Alitalia Germany, Switzerland, and Austria. After two or three years of experience there as a general manager, I was supposed to move to the United States in July 2002, but in September 2001, something happened that completely changed the scenario. The airline transportation industry went completely down, and I moved back to Rome as a marketing manager related to onboard services---everything that was offered to passengers, from food and wine to entertainment onboard, movies, gadgets. Everything offered onboard was under my responsibility from the marketing standpoint. I had to design the offer, the value proposition, and present it to the customers. After another five years in procurement, with the responsibility of opening up and, unfortunately, also closing down several stations of Alitalia around the globe, I had responsibility---and that was my last responsibility---as vice president of sales related to charter groups and tour operating. We handled 300 million euros, and 76 people were working for me. I had a budget; I had to bring in 300 million euros, which was 10 percent of the overall 3 billion euros total turnover of Alitalia in 2014. I left the company after 25 years took over. I decided to do something different. I moved---I was a consultant and senior advisor for a consultancy firm. The name is Ambire. And since then, for the last 10 years, I have had the responsibility within Ambire to internationalize companies, to deliver marketing and sales consultancy services, and to try to, let\'s say, push companies to go international. In other words, I\'m actually CEO of a company---the name is Play Hotel---which delivers services to the hospitality industry in terms of facility management. I\'m also CEO of a very small startup which produces a review app. It\'s something innovative; we\'ll be discussing it throughout the module---not that I want to sell you anything, but because it is one of the best examples of digital marketing services. Lastly, I deliver managerial courses in Rome Business School, in Federmanager Academy, and from time to time in La Sapienza University. So that is me---sales and marketing, even though I had a background in HR management. Why are we here tonight? Because we need to understand---we need to fully understand---not only how to best know and use strategies related to marketing, but also how to make them integrated in a constantly changing business environment. If you were to land from another planet in the world today, you would find yourself in front of 8 billion people. In November 2022, we officially became 8 billion people in the world. Eight billion people is quite a big number---a huge amount of potential customers, right? That would be a beautiful business opportunity. Let\'s try to get into a little bit more detail: out of those 8 billion people, 2 billion live in that big space---North and South America and almost the entire African continent. A lot of space, 2 billion people. In another relatively big space---that is, Europe, the Middle East, the eastern part of Africa, India, Russia---you can find another 2 billion people. In a much narrower space---Japan, China, Australia, etc.---you will find another 2 billion people. And then in a very narrow place---India, Bangladesh, etc.---you will find yourself in front of another 2 billion potential customers. If we divide our potential customers in this very easy way, we would not be successful at all. This is not, of course, marketing, but this is just an idea. If you divide the planet into geographical areas, you would find yourself in front of four different areas which are completely different---totally different. Why? Because when we deal with potential customers, we don\'t deal with numbers---we deal with people. We are 8 billion potential customers, but what is the added value today? What is the real added value? We want to feel like individuals. We don\'t want to feel like numbers. We don\'t like mass-produced products. We don\'t like things which are indifferently offered to anyone in the world, regardless of their desires, wishes, interests, etc. We are not numbers. We want to feel like individuals, even though we are a huge population. We go to a bar, and if the guy there says, \"Professor Di Domenico, good afternoon and welcome. Can I offer the usual coffee with no sugar in a small glass instead of a cup?\" I\'m happy. Why? Because I feel like a person, and that is valid for any one of you. Nowadays, consumers are completely different. We get a lot of information; we get a lot of documentation. Before we go out of our homes to buy a product---sometimes, or very often---we don\'t even go out of our homes to buy a product. We have already taken a lot of information, a lot of documentation, determined our preferences and prerequisites. We go and finalize the product selection based on an enormous amount of information and based on the fact that we don\'t want to feel like numbers---we want to feel, each one, with our own identity and expectations, regardless of cultural boundaries or geographical origin or where you live. The person---just to make a couple of examples---Caterina is completely different from Alba, from Alejandra, from Alexandra, etc. Probably they come from the same location, from the same nation, from the same city---they are fully, completely different. So, we don\'t focus on people like numbers. We focus on them like leads, customers, potential customers, prospects. We focus on them in their own individuality, and that is why if we want to divide the world again in big chunks, in big parts, we see that the 8 billion people are not, economically speaking, equal in their intention to spend their money. This is not a political course; it\'s an economic course. They are not equal. I\'m not commenting on this inequality on the planet. What I\'m putting on the table is: if we divide it geographically, we make a mistake; if we divide them by global economy, we already have a deeper or clearer idea. Eighty percent of the entire gross domestic product---the entire richness of the globe---is generated by 10 countries. 18:17 The first five---fifty percent: United States, China, India, Japan, and Germany. These generate 50 percent of the gross domestic product of the entire planet. Then you have another five: Canada, France, Italy, UK, Russia---going back and forth again due to political reasons, which will not be tackled or put under discussion today because we are talking about business. But if you see it like this, 80 percent of the entire money expenditure and richness of the globe relies on 10, 11, maximum 12 countries. Then you have another 10 or 15---something like this; that moves very much. But again, the entire global economy is in the hands of a relatively small number of countries and therefore people. And this is the picture taken at the end of 2023, if I\'m not mistaken---no, at the end of 2022. If we take this picture again, we would be very superficial because the future of the global economy is going to be rapidly, systematically, and significantly changing in a matter of few years. The global economy by 2050---experts say it will already be so by 2030---will be completely different. Yes, the United States will still play a leading role, and France, Japan, India, United Kingdom, Australia, etc. But number one, there will not be the Pareto law, 80/20, as you can clearly see. Number two, India and China will be associated and will be followed immediately by big Asian countries, growing economies such as Malaysia, Indonesia, Philippines, Bangladesh, South Korea, Thailand. I\'m reading an interesting book nowadays---it\'s a book focusing on Korea, and the title is From Big Whale to Big Shark. Korea used to be in the middle of two big sharks---Japan and China. It used to be, in terms of economic production, a big whale ready to be aggressively eaten by those two big sharks. Nowadays, Korea is a big shark itself. It has grown significantly in terms of technology---not only gross domestic product, but in terms of value proposition. Think about the automotive industry. Think about technology---Samsung is one of the biggest players in the telecommunication industry, etc. So, what we\'re putting on the table is: everything is constantly changing. You don\'t focus on your potential customer based on geography, because you would make a huge and terrible mistake. You don\'t focus on economic growth only, because again, this would put you into this picture today, into this picture in a couple of years or in five years. So, where do we find customers? Where do we find business opportunities? How do we deploy the best marketing strategy to develop our business, our value proposition, to become leaders in any market? That\'s the reason why you\'re here. Let\'s talk about a course on traditional and digital marketing. If up to a few years ago marketing was only traditional, was only classical---it is a strategic---it\'s not a science---it\'s a strategic discipline which allowed companies to become, from relatively small or even very small, giants in the market, to be players in the market, and that has generated big, harsh competition. Companies must deal with new growing economies. Think of El Salvador and Guyana---someone that will give you an answer throughout the presentation. Companies must deal with new growing economies. Companies must take into consideration that companies or the new emerging economies will be leading the globe in a matter of five years, as I mentioned to you before. So what do you have to do? You have to focus on classical marketing and digital marketing because you want to extend reach; you want to grab potential customers all over. And of course, people in Guyana and El Salvador are completely different from Italians, South Africans, Russians, and other emerging markets. So, you have to extend the reach, but you have to deal with individuality. And if some of you are writing down and asking me, \"How can I deal with individuality when I have to produce big, huge numbers and I have to respond to an El Salvador customer who has completely different tastes than a Norwegian customer?\" The answer is very simple. How many of you---don\'t even answer me; it would be too long, it will take too long---almost any of you, how many of you enjoy an Apple product here? An Apple computer, iPhone, AirPods, smartwatch, iPad, etc. Almost 80 percent. Why do you have an Apple? You\'re super cool. I have a bloody Xiaomi, and I\'m not cool at all. I hope none of you is working with Xiaomi. I\'m not offending Xiaomi; I\'m offending myself. I\'m joking, of course. I\'m trying to stimulate your reflection. Why? If I have a Xiaomi, I focus on intrinsic value and performance. And if you have an Apple phone, an iPhone, you pay 1,799 euros and you are super cool. That\'s marketing succes. That\'s why you\'re here. An Apple iPhone has 25 percent of hardware which is exactly the same as the hardware that this phone has. Both of them are built in a Samsung company---which is one of the major competitors of Apple---in a factory in China. Yet you buy Apple; you\'re super cool. You buy Xiaomi; you focus on intrinsic value---one quarter of this is exactly the same as an Apple phone. Why? That\'s the power of brand. Let me ask another question. Why do you feel super cool? Because even though you know that that Apple iPhone is producing 42 million pieces, you are not super cool because you have a specifically tailor-made product in your hand. That product is exactly the same in the hands of another 42 million people. Yet image---the power of brand---is very strong. Do you know which company has or enjoys the highest loyalty rate in the globe? You buy Xiaomi; after three years you buy Samsung; after two years you buy Honor; after five years you buy Oppo; after another couple of years you buy, I don\'t know, whatever phone. You buy Apple; you don\'t pull out of that company. And I laugh at people; I enjoy having a confrontation with people, and I say, \"Why do you keep on purchasing Apple?\" \"Because it has a beautiful video, because performance is much better than anyone else\"---pure nonsense. It is not true. It\'s the power of brand. Computers made by Apple are not much more powerful or much more high-performing than HP or whatever. Apple generates 97 percent loyalty---that means once you buy Apple, you never pull out of that trap. Why? Because of brand, because of services, because you don\'t buy a product---you buy a value. What is the value proposition of Apple? Or in other terms, what is the unique selling proposition of Apple? Apple equals innovation. You buy a constantly innovative product. Mr. Steve Jobs had almost brought his company to bankruptcy. He created a beautiful Apple---he created a beautiful personal computer. He was the first one to create a mouse, and he associated it, included it in the computer. Pity that IBM products were already well spread in the world; they were not better than Macintosh, yet that product was better spread, so he went and crashed his face against a big fiasco. Then they moved into the software industry, and they said Apple software is much better than Microsoft. Pity that Microsoft was already included in the hardware, which was the IBM, so he had to crash his face against another failure. He was fired by his own company. He left the company; he stayed three years under depression at home. He created Pixar cartoons, which was a digital company. Then he was called back and invented, out of the blue, a beautiful product. That\'s my story with Apple. I\'m not an Apple customer, but I am fond of iPod. Why? In 1982, 1983, coming back from Canada---I was the first in Palermo, the city I come from originally---I was the first to have a Sony Walkman. That was a big one---kilo and a half---April, with the small headphones, but it would put me in a position to go around listening to music. And that was a portable music player. After 10, 12 years, I had no opportunity because the cassette tape was not operative anymore, so I had to buy a portable disc company player. It was a nightmare; I had to carry around compact discs, and the company was not performing at all. So, for another 10 years, I was not in a position to go outside my home with portable music. Then a guy invented, out of the blue, a small, little, tiny aluminum-made Apple with a hard disk, with a basic technology that was the MP3 software, that would allow me to have 80 gigabytes of music. I was the happiest man in the world, and I queued for hours to go to the Apple Store in New York and finally buy the beautiful iPod. I still have it after, I don\'t know, 25 years. It\'s not working anymore; iTunes does not exist anymore---or it does, but not as it used to exist---and iCloud. You know why? They didn\'t tell me, \"Buy this, because the hard disk is putting you in a position to listen to music that you will have to transform from vinyl disc or compact disc into MP3, etc.\" Because I saw a beautiful advertisement, and that advertisement was a little tiny piece of metal with a huge amount---like a volcano view---the huge amount of CDs and vinyl discs and music and faces of Duran Duran and all the guys and girls I used to love playing music with, and the motto at the very top, at the very bottom, was \"20,000 songs in your pocket.\" That was emotional. That was beautiful. That was innovation. I bought the first iPod, and then I bought the second one, the bigger 180 gigabytes, and then I bought the digital one, and I keep on purchasing iPod even though I know that that iPod does not sound as well as FiiO DAC, DSD, digital audio converter, etc. Why? Because the emotion that they associated with a product is still captivating me, is still attracting me. Apple is absolutely consistent and coherent with its own innovation. Everything is innovation. The new iPhone---as soon as the new iPhone is about to come out, people sell the old one and they want to buy the new one, even though they purchased two years ago for 1,799 euros the iPhone---the 15, 13, 14, whatever. They sell it because they want to kill and buy the new one. It\'s the same with the AirPods. 18:31 It\'s the same with the iPad; it\'s the same with Mac. It\'s exactly the same with all these companies. They\'re not the only ones, but they are the best in doing this. What do they do? They do marketing which is focused on one unique selling proposition or unique value proposition, and that is: I don\'t buy a piece of hardware; I buy super cool, innovative stuff. When you buy Gucci, you don\'t buy a beautiful T-shirt---white with \"Gucci\" gently written here. You buy luxury. When you buy a Mercedes, you don\'t buy a car---you buy the car, or at least the upper-segment car. When you want to buy a super sports car, even though you have all that money, you don\'t buy simply McLaren or Porsche and spend a lot of money, and they have strong brands, but the supercar is Ferrari. No discussion. Yes, you have Lamborghini, and you have a lot of other companies, yet the number one, the unique selling proposition\... I\'m can give you plenty of examples Apple or other brands. I have plenty of innovative brands you don\'t even know---you don\'t even dream that they exist. That is why I\'m not giving you the slides before. Let me go through it. Traditional marketing is exactly what I was referring to in the 20th century. It relied on big emotional communication---iPod with a lot of music, \"20,000 songs in your pocket.\" What is that? Emotion. That emotion involves people; they make them loyal to a brand rather than loyal to a product. Again, you want to buy the supercar---you buy Ferrari. You want to buy---you want to---and I will explain to you the reasoning behind. What was the limit of traditional marketing? Traditional marketing was one-way communication---companies communicating with you. They had big emotional involvement; they had a big part of, how to say, emotional surprise. They had---or they still have, because we\'ll be talking about traditional marketing even today and the effectiveness of traditional marketing---but it was one-way communication. Some companies---it is another example---Chrysler invested 6 million dollars for a 30-second, super beautiful ad during the Super Bowl 2019 or something. It was a complete fiasco. They didn\'t sell, after the beautiful commercial enough---after the big event, which was the Super Bowl---they did not even sell 50 percent of the expected amount of cars because probably that was not the right momentum; probably the people were not paying enough attention to that message. The real limit was one-way communication. The one-way communication was a big negative side effect of traditional marketing. Why? They didn\'t know---we didn\'t know---we didn\'t know how to deal with responding; we didn\'t know how to deal with generating involvement, which then would eventually generate people getting emotionally involved with Nike shoes, but then at the end of the day, they will buy Adidas shoes. So somehow you would do marketing for competitors. Campaigns were very expensive; they included a lot of investments, and channels were the typical traditional ones---television and TV shows and radio and advertisements on paper, etc. I will show you now what are considered the best five traditional marketing campaigns of all time. I made a mistake; I pushed a button---I don\'t know if you already saw, so I will cut a long story short. What is considered the best classic marketing campaign ever? And that is made by Nike. The motto is \"Just Do It.\" Do you know the origin of the motto? It looks and sounds incredible, but \"Just Do It\" is something that a person who had killed several other people and was sentenced to death penalty---to death sentence---he went to the electric chair; he sat on the electric chair. They were giving the final moments of talking, and he said, \"Okay, let\'s just do it.\" The origin of \"Just Do It\" is, of course, a negative moment, but Nike transformed it into a big and powerful moment of motivation. A lot of pictures, a lot of images of people playing sports, suffering, doing sports, and making mistakes during sports, but \"Just Do It\" was considered the best marketing campaign ever. What about the second one? Which one do you think would be the second one? Have you ever heard about Dove\'s \"Real Beauty\" campaign? It was launched in the early 2000s. It did not focus on the product; it never mentioned any product of Dove, but it focused on beautiful but not perfect girls and women in the world---fat or fit, grey or gorgeous, wrinkled or wonderful, etc. The \"Real Beauty\" campaign ads generated not only a huge amount of success turnover-wise for Dove but also generated a statement: you women are beautiful even if you are not perfect, because in the common sense, especially in the United States, the idea was either you are as beautiful as a Hollywood actress or you\'re worth nothing; there is nothing in between. Dove insisted with this campaign and generated a completely different culture. The culture is: I\'m beautiful even though I\'m not perfect, and this is considered the second-best campaign in the world. What about the third one? What idea do you have? I\'m not selling you anything about Porsche. \"Think Different\" was considered the third most effective campaign ever because it generated reflection, and this is one of the major pillars of marketing success of Apple in the world. \"Think Different,\" with all these very big reference points---Picasso, the creator of Bugs Bunny, the first female brave pilot, Einstein, etc.---that was considered and is still ongoing and has generated a huge amount of unique value proposition. One of the reasons why you buy Apple is exactly this. About the fourth one---it\'s not because I\'m fond of watches; it\'s not because I love the watch world. This is the fourth or fifth one. Coca-Cola---I\'ll be talking about watches in one minute; I thought it was the fourth, but Coca-Cola comes before. Number one, Coca-Cola\'s brand and logo is the most known brand in the world. You go to Afghanistan---you find a bombed, unfortunately, a bombed bar. At the bottom of the bar, you find the metallic block with \"Coca-Cola: We Refresh the World\" as a motto associated with Coca-Cola, and it\'s the widest, the most known brand on the planet. Immediately after, you have Visa, American Express, if I\'m not mistaken, again Ferrari, and then Armani, some other luxury brand, etc. But the biggest one is Coca-Cola, the power of their advertising inflenced billion of people. Coca-Cola in 1931 played a big role in shaping the current joly character we know today, before that there were many different depictions of Santa Claus around the world, including a tall gaunt man and an elf ---there was even a scary Claus. The Santa Clauss picture, the way how we imagine Santa Clauss was invented by Coca-Cola. Santa Claus, with that red-white beard and red dress, bringing happiness all over the planet, was generated and created by them. Coca-Cola is producing billions of bottles and cans a day. What was---or which was---the most successful campaign? It was Coca-Cola with the name of each and every one: Anna, Paul, Francesco, Jasper, Dimitrios, etc. That was the most successful campaign, launched in 1979, which never expired. They keep on saying, \"You are individuals.\" You go---of course, you don\'t---it is almost impossible that you would find Maurizio in a store in North Carolina, but you go here in Rome and you go to a Coca-Cola store where they sell bottles, and they say we sell bottles with names, and you would find Marco and the very common names. What is the message? Even though I produce in industrial quantities, you\'re still an individual for me. Buy the Coca-Cola with your name on top of it. Nutella has done exactly the same nowadays; they copied this marketing approach. These are emotional, best traditional marketing campaigns. The fifth one is the \"Don\'t Crack Under Pressure\" motto, generated by TAG Heuer. It started in 1968 or something, with the actor Steve McQueen that you can see in the picture. He was wearing that watch. \"Don\'t Crack Under Pressure\" was equivalent to anything you are doing---go on and perform, simply because you\'re under pressure. They kept on effectively launching with the \"Don\'t Crack Under Pressure\" with---nowadays, you find the same \"Don\'t Crack Under Pressure\" advertisement with Ronaldo; you used to find it with a lot of other tennis players, with sailing boats, etc. They keep on having exactly the same motto; they keep on having the same emotional approach---face of the actor, face of the pilot, face of the person feeling under pressure: \"Don\'t Crack Under Pressure.\" If you\'re getting the message, I will show you now another effective, emotional, traditional marketing campaign, and you\'re supposed to laugh: \"Eat Mor Chikin,\" written by cows. That was a very funny, very, how to say, provocative advertisement, but it did generate, in the eastern part of the United States, a big phenomenon---beef consumption decreased by about 30 percent in a six-month time because in a lot of highways, you would find those two funny cows painting \"Eat Mor Chikin\" with the mistake. It was an example of a very effective traditional marketing campaign. So, coming back to the roots and coming back to the core of the business of the presentation, what was the traditional approach? Somehow limited, but on the other side, very impressive, very emotional, very evocative because the need to generate a reaction from your potential customer, your leads, your prospects, needed to be done in a relatively small or rapid amount of time with a relatively high amount of investment of money. What are we putting on the table here? 18:46 Traditional marketing focuses on or involves a limited number of people. It gives less information because, of course, you don\'t have time to provide your potential customers with a lot of information. It has a huge amount of investment behind it. It is not flexible; it is not agile; it is not versatile; it is delayed because by the time you communicate on TV, on radio, people are taking action in a relatively long span of time, and the scope is very limited. I try to grab as many customers as possible out of those 8 billion people, but I have to communicate something which is a kind of universal value: women can feel beautiful even though they are not as perfect as Angelina Jolie, and people can buy Coca-Cola bottles and still feel connected because it is written on it---probably it is not their name, but it\'s their best friend\'s name, so they can eventually, how to say, humanize relationships with some other people, etc. Those are the limits of traditional marketing. On the other side, digital advertisement, digital marketing, digital communication, digital pieces of marketing include or involve low cost, a wide range of sources---social media, and you will see now in a few minutes---higher conversion rate. If you are successfully addressing an email campaign, you would be in a position to effectively respond to those marketing challenges. Higher conversion rate, measurable online marketing response, which is related to a higher rate of engagement of your potential customer, and you communicate immediately. A few days ago, I had a very nice experience, and probably you are getting that experience---not as intense as I got it a few days ago---but you\'re already experiencing this. A few days ago, I was in the middle of the street---no smartphone, no WhatsApp on, nothing---and I was talking to a friend of mine, and I was saying, after 25 years---I used to have a Ducati in Japan; I used to have a lot of models; I was younger---but after 25 years, I still miss the beautiful feeling of riding a Ducati. Quite a wild motorbike---no protection or nothing, big noise---it was a beautiful motorbike, and I said to him, \"I wish, or I will be reflecting upon the opportunity to eventually buy a second-hand Ducati, etc., even though I have three children; I don\'t want to die in the middle of the street in Rome here, because in Rome they drive like crazy, and so I\'m not so sure I want to buy a motorbike.\" But anyway, I was talking about the feeling of eventually having a motorbike again. No smartphone, no WhatsApp, nothing. I went home; I was checking on the web; I was surfing the web. Google ads pop up: \"Why don\'t you go and find the best offers in Rome? Aurelia Motorbike Dealer Ducati.\" Well, that was quite impressive to me because I did experience sending WhatsApp and messages and emails, etc., to a friend of mine, receiving Google ads which were specifically relating to something that I was discussing or to something I was taking care of, but it never happened to me that I was talking to a person, and somehow this little tiny thing was collecting my keywords and was generating a specific tailor-made Google ad for me. It didn\'t happen---or it was not happening---but again, it was striking, but it was an immediate communication. If I was still feeling involved in the feeling that I was missing Ducati, I would have pressed the button, and then I would have probably gone to the Ducati dealer, and I would have probably tested a motorbike. At the end of the day, probably I would not have bought it, but anyway, the communication---the effectiveness of digital communication---was immediate, impressive, and relevant. But let me ask you a question, and please don\'t answer in the chat, because you are 72 now, and it would take a little bit too much, but I\'m anticipating your answer. Who---or better, what---is the product of Google? I said it properly---the first question I placed better, or more properly---the first question: who is the product? The product is us. They collect data. They collect all the information that we provide them with. How do we do that? They give us a beautiful Gmail account---free. Then they give us a beautiful GPS system---Google Maps---and they give us plenty of information, and then they give us Google Drive, and they give us all the world---a set of products from Google for free. That is beautiful. Strangely enough, they are collecting our data. They go back to Renault cars, to efforts, to any company that wants to launch a digital marketing campaign, and they say, \"Listen, I have 2 million gigabytes of information on Maurizio Di Domenico, who every Saturday morning goes running, and then he takes a flight from Rome to Palermo every once a month, and then---why? Because I checked on GPS, and he does the booking with me, etc., etc. Everything related to Maurizio is in full detail defined in this big data. You want to launch a specific marketing campaign based on specific wishes, expectations, dreams of Maurizio Di Domenico---I have all the data.\" Why is Google the best search engine in the world? Don\'t tell me because they have good colors on the---or they do the Google---what do you call it---pads, or the doodles, etc., etc. Don\'t give me that. Don\'t believe that. Google is the top player in the market, and Yahoo is way below---in terms of market share, market penetration, and value proposition. What is the reasoning behind this? Why is Google number one? It\'s not because they know how to filter spam best. Very simple---they have the best algorithm. They have the best algorithm in the world, and they keep using and improving it to provide you with the best experience. They keep updating the algorithm, and this allows them to do something like this: I\'m looking for a \"hotel de congressi\"---very easy. But if I\'m looking for a beautiful hotel for the weekend for a family, with a swimming pool and a babysitter, they generate the best answer. No question about it. So Google has generated a significant advantage or edge over its competitors---Yahoo, Bing, and other competitor. They still have a great and significant advantage. Why? They know how to better run digital marketing campaigns. They know how to best collect our data, interpret those data, and provide them to their own customers. That is why I found myself in front of Google ads talking to me about Ducati. I\'m not in control because every single device you have ---computers, smartphones, tablets, etc.---they keep collecting the keywords. They keep optimizing the search engine content. Everybody knows, but Google is the best one in delivering that value. And that is why they are number one. I\'m selling you Google; I\'m giving you the picture. So what happened in the past? Why is traditional marketing transforming and evolving its features into digital? Because, number one, there was so much change that came into play---that jumped into the game. And there were a lot of them; most of them were wiped out. And now Google is dominant, but please be aware that, just as all the other players were dominant a few years ago and Google was not, Google might not be conditioned to keep that position over the long term. Search engines come into play. The social media revolution---you don\'t have just one medium only. You have plenty of media, and we\'ll be discussing it tomorrow. I will show you and highlight the differences between social media that help you deliver the best marketing campaign (sell side---company side) and help you define the best customer experience (client side). Mobile---the mobile moved from mobile into smartphone; we\'ll be discussing it later on. But mobile-first marketing made people not use computers anymore---laptops or desktops---but they started to have, at the very beginning, basic operations, and now very sophisticated operations using mobile phones. Then we had consumer data. Those data became, from a quantity standpoint, a huge amount of data. Nowadays, there is a key critical factor: companies have too much data, and they are finding difficulties in fully prioritizing those data. But data, at the very beginning, made the world of digital marketing campaigns way easier. Why? Because you knew that I was into watches, that I would run Saturday in the morning, that I have three children, and that I would enjoy, after so many years of traveling around as an expat, family life, etc. So all this generated an evolution of digital marketing in five key turning points and generated this world: website marketing, search engine optimization, social media marketing, pay-per-click marketing, content marketing, email marketing, affiliate marketing, and video marketing. Let me give you an example. I bought a smartwatch for my son, and I said to him, \"Okay, we don\'t have the new smartwatch\'s instructions.\" It was a smartwatch; I bought him a smartwatch. And I said, \"Let\'s put the telephone on the QR code; we\'ll get the digital instruction manual.\" He said, \"Dad, you are really a boomer. Don\'t even think about it. Don\'t even mention that. I will go through a six-minute video tutorial on YouTube, and I will get all the information. Don\'t even worry about it. I mastered my smartwatch in a six-minute video.\" That is a powerful marketing tool. It allows the product to be associated with added-value services that put potential customers in a position to become actual customers---not because this smartwatch is better looking or costs less or more than other smartwatches, but because they have video marketing, they have affiliate marketing campaigns. They have email marketing; they solicit the desire for that product through video content. We will also be talking about that. But this is the digital marketing world through its more specific tools---information that would allow each one of you to better anticipate demand and needs, anticipate requests of your potential customers, because you will be in a position to fully understand and eventually deliver added-value services through the digital marketing tools rather than channels. Why do you want to do that? The reason is, it\'s all in the five Ws of marketing. The 5 Ws of marketing are: Who, What, When, Where, How---which doesn\'t have a W at the beginning but at the end---and lastly, Why. Why do we focus on the Ws? In order to fully understand what is our unique selling proposition. Let\'s try to use the 5 Ws model with Alitalia. Who are you? I\'m an airline. What do you do? I transport passengers from point A to point B. When do you do it? Every day. Where do you do it? From Rome to 179 destinations in the world. How do you do it? With an aircraft. Why should I buy from you? What is the distinctive selling value or the distinctive value proposition? Why do you fly? I\'m not selling you Alitalia, but I\'m telling you the reason why Alitalia, which used to be the flagship airline of Italy---it does not exist anymore, so there is nothing that can be sold---but I\'m giving you a direct experience from Alitalia managers. The reason why was very clear, and it was: Why was my price in Japan higher than Japan Airlines and All Nippon Airways? No, no. Just listen to me carefully. The reason why Alitalia is very simple. Who are you, how, etc.---already responded. Why do I have to buy you? You\'re in Japan; you love Italy. You are willing to pay a premium price because as soon as you are in an aircraft, you\'re still in Tokyo, but you want to feel the Italian atmosphere. You jump into an aircraft, and you find Parmigiano cheese and \"La Dolce Vita\" movies, and the flight attendant winking an eye---all stereotypes of Italy, all positive things. So, Italy---the reason why is what makes your product completely different from anyone else, and that is the big challenge. Let me keep on giving you information about this. Why? If the answer is correct---I am a Japanese, Korean, Chinese---a lot of people from different nationalities, lovely---they will love to enjoy \"La Dolce Vita\" and walking in the streets of Rome and enjoying beautiful pasta and the Made in Italy products and Parmigiano cheese and the beautiful Ferragamo tie---I used to sell over 3,000 ties a month on those flights. The reason why you would fly with Alitalia was because Alitalia was the official carrier of Made in Italy. If the reason why of Alitalia is correct, but you need another example, let me ask you another question. Why do you fly with Ryanair? Price. I fly with Ryanair, and I\'m ready to give up a lot of comfortable qualities because I fly from Rome to Palermo with €9.99. I know it\'s a bus with wings. I know they offer me nothing. I know they keep announcing on the public address system, \"Do you want to buy a lucky draw ticket? Do you want to buy a bottle of water? Do you want to buy perfume for only €25?\" I\'m not negatively addressing Ryanair; please quote me. What I\'m saying is, if I fly with Ryanair, I have a clear reason why. Ryanair was outstanding, very brave, and efficient in delivering, addressing, identifying, and communicating the reason why. I fly Ryanair because I want to save money. I want to spend a weekend every weekend of November in a different European city. I can afford it because I pay, at the end of the day, €20 back and forth. That is the why exactly--- it goes way beyond the individual data. The reason why is I fly Ryanair because I want to save money. I used to fly with Alitalia because I wanted to find myself in the Italian atmosphere. If those two concepts are valid, I ask another question. Have you seen Air France advertisements these days? You don\'t see an aircraft, you don\'t see an airport, you don\'t see a flight attendant. You see a beautiful blonde lady swinging in the clouds with a beautiful evocative song from Edith Piaf. And at the bottom of this beautiful, evocative video, what do you see? You see you fly with Air France because you love the French allure. The reason why is what makes your company distinctive, sometimes unique, and that is why you have to focus in terms of marketing on how clever, direct, and clear your message is. Because the reason why, independently from traditional marketing campaigns or digital marketing campaigns, is what makes the marketing strategy effective. Where? Where are you promoting your business---from Rome to London. When? When do you want to go to market; when exactly do you want to go there? Who is your customer? Who is your target customer? What makes your business different? And why do they have to choose you? The how is included by the idea---is what exactly you have to think. If you\'re working in pharmaceuticals, in sustainability, in supply chain management, probably you will not use these tools, disciplines, and skills in your professional life. But number one, you must know them. Number two, you must know how to manage them. Number three, eventually, even in the supply chain management system, even in sustainability in pharma, and in any set of activities, you will be in a position to fully ask yourself the five Ws in any marketing campaign. Because the idea is to generate a unique selling proposition. Let me tell you what the unique selling proposition relies on: what your brand, your company, your startup, your institution, your bank does well---that is your comfort zone. Don\'t get into my comfort zone because I know how to do it very well. I have skills, capabilities, expertise, capitalization. Don\'t get into my core business because there is nobody who does it better than me. Okay, then you find yourself in what your competitors do well, and that is the red X. Avoid going there. Try not to kill your competitors. Why? Because it\'s their comfort zone; it\'s their core business. They will do their utmost to compete against you. But what does the consumer want? The consumer wants a part of what you do very well, a part of what your competitors do very well, but there is still a yellow question mark--- the so-called undecided customer, the so-called \"who cares.\" That is your grabbing area. You want to become dominant in the market. Don\'t even mention---don\'t waste time killing your competitors, and don\'t, of course, allow your competitors to kill you. So focus, if you want to generate a unique selling proposition, on the undecided, the potential customers, the ones that might be choosing you or the opponent. And once they decide, do what Apple does best: make them loyal customers, make them love your brand, make them fall in love with your brand, and put them in a position never to quit your brand. That is exactly the final aim of each and every single company when it comes to marketing. That is exactly what you have to do. And it\'s important because you will be in a position to do this: to ask your passenger, your customer, your partner, \"Why should I buy from you?\" And you will not ask that question because he or she will let that question be clearly answered by your brand, by your behavior, by your marketing campaigns, by your marketing communications, etc., etc. I will show you why. This is exactly what we need to do. This is exactly where companies strive to remain competitive because they want to keep defending their core business, but they are proactively and aggressively grabbing the yellow question mark---that is the risk. If your competitors get that, you are out of business in a matter of a few years because technology, innovation, new rules and regulations, new trends, new desires of your customers will put you in a position to eventually disappear. You have to grab that because that is the risky point behind the undecided ones. And that is why we\'re here. With traditional marketing, the big limit was there was no alternative; the digital world was not there yet. So you really had to be outstanding in being provocative, evocative, emotional---exactly like the big guys: \"Don\'t crack under pressure,\" \"Think Different,\" Coca-Cola\'s \"We Refresh the World,\" and \"Just Do It,\" etc., just to make a few examples. But the rise of digital marketing generated a big transformation, a big evolution, a big transformation of the rules in the market. Why? Because as technology started developing, companies would enjoy direct contact with customers. They didn\'t need wholesalers, retailers, or importers to communicate directly. They needed advertising, which would eventually cost a lot of money and would, for sure, generate a non-relevant amount of responses, actions, and reactions. They needed to find, through technology, a way to not only talk directly but also to give and receive feedback. I will give you examples of companies that duly receive feedback and are able to keep competing against the big guys. The very important information was data. They would suddenly get back a lot of information through search engines, big data collectors, and digital surveys. How many times and how often do we receive an email---or we surf the web and find on a website---that says, \"You send us your email---no privacy violation---we\'ll send you a beautiful ebook for free.\" Okay, I\'ll write it down. I send them my personal email, I get the ebook, and three days after, you receive an email: \"Dear Moritza Dominico, did you have the chance to read the ebook? Did you find it useful? Would you like to go into more details? Would you like to get more accurate data or information? Can we call you or arrange a Zoom call or Google Meet in order for us to understand what exactly you need?\" That is something which did not exist 20 or 30 years ago because the digitalization of marketing started in the early \'90s, let\'s say. But the big component was data information---feedback. On the other side, you would be based on data to better know what was your return on investment related to advertisement. I would send you an email; you would eventually call me back or write back. That doesn\'t mean that you\'re purchasing my product, but it means that my advertisement campaign did generate 1, 10, 1 million, 10 million reactions. Out of those 10 million, the AIDA funnel---which is something that I will show you later on---will be conditioned to generate an output: customer, client. As a matter of fact, the idea is that I would know exactly where my customer is, what my customer wants, what their expectations are---if they live with family or if they are single, if they are old, if they are Boomers, so X, Y, Z, etc. What was the reasoning behind? Suddenly, or not so suddenly, in a relatively small amount of time, companies were able to fully understand what the requests, dreams, and wishes were all about. And that was the big advantage. You can still hear me, right? You\'re not going away, are you? Just a \"Yes\" in the message will make me think that I\'m not talking alone. Perfect. Okay. Personalization was the big opportunity, and it was finally---thanks to all of you---in a relatively small amount of time, possible to know how to make personalized campaigns, how to create beautiful interactions with my potential customers. Let\'s use the big guys. I tend to use the names of the big brands because, coming from all over the world, if I would go too much with European or Italian brands, some of you might not know them. That is why I focus on the big guys. Why do we talk about Amazon? Mr. Jeff Bezos---you see the picture---up to 1997, he was absolutely nobody or almost nobody. I don\'t want to offend the guy, but in 1994, I saw a video where he showed the offices to his father. He was a little skinny guy, wearing clothes bigger than his size. He was carrying around; he had a lot of desks, and he had a bed behind the desk. He would send books online, get money online, and sleep there. And as soon as a message would blink, he would wake up and immediately send the book because he was becoming, somehow, a bigger company. But the gradual growth of Amazon was dramatically interrupted in 1997. What happened in 1997? In 1998, my daughter was born in Tokyo, but in 1997, there was a major event. I\'m joking, of course, but in 1997, what did he have access to? He finally got access to a global source of information through a main search engine---you know which one that is because it was the beginning of 1998. He was able to fully understand what Amazon customers wanted. How did they want it? What was the expected time, etc.? Funny enough, customers of Amazon were sick and tired of receiving only books; they wanted to have everything---everything at a glance. They were ready to pay premium prices for products to be delivered within 48 hours. They wanted to have everything from toothpaste to pharmaceutical products to anything---water, food. He is not yet active in the food industry, but he will be very active in just a matter of months. Think about the personalized restaurants and supermarkets that are already at the starting point in the United States, and they\'re all branded Amazon. So the level of personalization of services was so big that immediately he got access to a huge amount of data, to a huge amount of information. What was the biggest or the quantum leap? He called the best guys and girls in Silicon Valley and said, \"I\'m not only a skinny guy doing a lot of book selling,\" etc. He was already making some millions in three years\' time. The total turnover jumped from millions to billions, and nowadays, it\'s equivalent to trillions. Amazon, Apple, Google are so capitalized that they can buy a piece of Belgium. They can buy the entire gross domestic product of a relatively big African country. They are so capitalized. They do research and development for the space industry, and they still sell everything. The neutral e-commerce platform of Amazon is becoming nowadays a benchmark. The final strategic aim of Jeff Bezos is to become a benchmark, and he\'s already successful in doing that. Why am I putting this on the table? When you, tomorrow morning, will love to have this beautiful bottle because your professor Domenico showed it to you. Okay, so tomorrow morning, you want to have a plastic green Super Sparrow bottle---you want exactly this one. What do you do? You wake up, you dress up, you go to a physical store, and you buy the bottle. No way. You stay in bed; you don\'t even dress up; you don\'t even bother. You pick up the computer, you put it on your lap, you type Amazon.com, and you see price first, availability, colors, how many stars other people who voted for the product put on that specific product. If 5,000 people, 17,000 people have already bought that beautiful green bottle and they have put five stars, you might be inclined to buy it. Sometimes you don\'t even buy the product, but you did the benchmarking, and then you go to a physical store. You go to buy food in a supermarket, and you find yourself in front of the beautiful bottle, which is also sold in the supermarket. Ninety percent of the time, you don\'t even bother---you buy on Amazon. Why? Because 90% of the time, you open up Nike.com, you want to buy a beautiful pair of Nike shoes, and that pair of shoes costs \$194. You move to Amazon---strange enough---because it\'s \$170. So why bother? You are a Prime customer; you receive the product in front of your home, no fuss, no nothing. They finally understood that we all wanted personalized services. That doesn\'t mean that personalized service cannot be exactly the same as my neighbor who lives in front of my door. Personalization means I want to deliver a personalized service to my e-commerce neutral platform customer. My name is Amazon. You like to have it within 24 hours, and you are willing to pay 36 euros to get a specific service. My neighbor is not willing to spend 36 euros a year or month---I don\'t know---but he wants to have personal service anyway. Amazon got the information and was able to deliver the service. This is the role of data and personalization.