Digital Merchandising

Digital Transformation

Integration of digital technology into all business areas.

What is an example of digital transformation?

Uber, Lyft, Airbnb

Merchandising

The activity of promoting the sale of goods, especially by their presentation retail outlets.

Promotion

Any communication used to inform, persuade, and/or remind people about an organizations or individuals goods, services, image, ideas, community involvement, or impact on society.

Traditional Media

Media buying, the simple act of the transaction between media owners and companies ex. Newspaper and physical things

Mass (broadcasting) media

The stage of active planning, the practice of determining how, when, and where to deliver a message to the audience Ex. Radio and Telivision

How many types of media there and what are they?

Three: Mass media, Traditional media, Digital Media

The two types of media are __________.

Passive Media Consumption

Push Media

Where people people passively consume content, Companies are pushing media at you. Ex. Newspaper, magazines, TV, direct emails, ads/promotional offers/emails filling inboxes with content

Pull Media

Where people actively engage with content. (Surfing the web, they can find information) Only pulled to things attractive and relative to them. Ex. Web Surfing, People getting "pulled to a brands site"

T or F: We have to know what stage the consumer is in, so we need to tailor the experience to the consume.

True

Digital Disruption

Turbulences caused by emerging digital technologies and business models

What do we need an understanding of to grab peoples attention?

1. What medium the consumer is using

2. Why they are using it in the context of making product decisions, and how

3. The stage consumers are in and whether or not these particular promotional messages are relevant to them at that time, in that context

Consumer Dialogue

Businesses have to learn how to have a meaningful conversation with their customers, through diverse (digital) media.

What are the two main roles of a digital merchandiser?

• to initiate the conversations

• to figure out when and where the conversations are taking place and become a part of them.

Digital Merchandising

All about driving customer conversion and satisfaction across all digital touchpoints. Everything that promotes your product through a digital venue.

Consumer conversion

Any action that companies want from consumers (mainly about purchase), but it can change based on goals or objectives. (Ex. Any action of consumers that we want.

We want to fill consumers' carts)

Conversion

When a visitor to your website completes a desired goal, such as making a purchase, filling a form, or signing up.

"Casual Buddy" Brand

• Friendship is low in affect and intimacy.

• Characterized by infrequent or sporadic engagement.

• Few expectations for reciprocity or reward.

"Best friend" Brand

• Voluntary union based on the reciprocity principle, which ensures endurance through the

continued provision of positive rewards.

• Characterized by the revelation of true self, honesty, and intimacy.

• Congruity in personal interests in common.

"Soulmate" Brand

• Long-term, voluntarily imposed, socially supported union.

• High in love, intimacy, trust, and a commitment to stay together despite adverse

circumstances.

• Adherence to exclusivity rules expected.

T or F Digital merchandising is all about driving customer conversion and satisfaction across all digital touchpoints.

T

T or F The decrease in media and the digital landscape have put people in

control and increased disruption.

F) Increase

Digital Transformation

A process where people and technology collaborate to transform existing processes/services or create new ones.

Intenet of Things (IoT)

Smart devices (like Alexa, smart homes, wearable health tech) connected online.

Social Media

Companies + consumers share info online (Instagram, TikTok, LinkedIn, etc.).

Mobile Apps

Apps for shopping, social, banking, games, etc.

Artificial Intelligence (AI, incl. ChatGPT)

Machines that "think" and make decisions (like ChatGPT, Siri, hiring software).

Augmented Reality (AR) versus Virtual Reality (VR)

AR = adds digital things into real life (like Snapchat filters, virtual furniture try-ons).

VR = fully virtual world (Oculus, gaming, training).

Metaverse

Giant virtual world combining AR + VR where people use avatars (like Roblox on steroids).

Corporate Digital Responsibility (CDR)

Companies being ethical with tech and data (privacy, fairness, no manipulation).

What are the layers of business challenges

Societal, Economic, Technological, Politicial

Digital

the convergence of multiple technology innovations enabled by connectivity (the Global Center for Digital Business Transformation)

Digital Disruption

Examples of Digital Disruption

Hotel/accommodation, Mdeia and Entertainment, and Information Technology

Information Technology

The way people interact with tech and info

Media & entertainment

Subscription business model

Hotel/accommodation

Sharing economy (LikeUberr sharing cars)

Digital Vortex

The inevitable movement of industries toward a "digital center" in which business models, offerings, and value chains are digitized to the maximum extent possible.

Is data-intensive inside the digital vortex or outside?

Inside

Is asset-intensive inside the digital vortex or outside?

Outside

Digitization

Standardizing business processes and operational necessity

Digital Mindset

the ability to see and make the most of the opportunities that digital change offers.

Match: Digital, Traditional Digital: One to many, One to one

TD: One to many. D: One to One

T or F: Digital Transformation is the effect of digital technologies and business models on a company's current value proposition and its resulting market position..

F: Digital disruption

T or F: Digital Disruption is a process where people and technology collaborate to transform existing processes and services or create new ones; it changes the way businesses are operated, and how value is delivered.

F: Digital Disruption

What are the three principles of network science?

I. Metcalfe's Law: a measure of network effects

II. Milgram's Small World Hypothesis: six degrees of separation

III. Power Law Distribution / 90-9-1 Rule

Metcalfe's Law

• A measure of network effects

• The value of a communications network is proportional to the square of the number of its users.

Participation "Tipping Point"

- "Network effects" lead to participation "tipping points"

- After a certain number of people get on to a platform, it starts to become more attractive

Milgram's Small World Hypothesis

"We're all connected by just "six degrees"

Power Law Distribution / 90-9-1 Rule

- Participation inequality

- "90% of people are observers

who read or observe only, 9% of members are contributors who edit or respond, and 1% of people actively create new content."

Who made the Power Law Distribution / 90-9-1 Rule?

Jakob Nielsen

Who made the Milgram's Small World Hypothesis?

Stanley Milgram

Consumer Network Strategies

Access, Engage, Customize, Connect, Collaborate