Marketing digitalization immediately raises the question of where to start, in what order, and what final structure to form. This is the layout issue of marketing digitalization.

-01- Digitalization from the Brand Owner's Perspective When discussing digitalization now, manufacturers (brand owners) often feel confused or even unable to understand. There are two reasons:

First, most current digitalization initiatives are from the perspective of platform operators and retailers. Business thought has a standpoint. New retail naturally stands on the side of platform operators and retailers, while new marketing stands on the side of brand owners. Digitalization was first proposed by platform operators, who extended it to new retail and are also pursuing digitalization. Platform operators and new retail were the first to achieve online transactions. It is easy to understand that digitalization started with them. Many of the digitalization theories, business logics, and cases discussed now are from the standpoint of platform operators and retailers.

Second, those who build digitalization systems are mostly from the 2C and internet fields. The business logic of 2C digitalization differs from that of 2B digitalization. Moreover, traditional manufacturers' digitalization is more about BC-linked digitalization, which is more complex than pure 2B or 2C.

Remember: digitalization serves marketing, not the other way around. The purpose and means must be clear. I have communicated with many who build digitalization systems; they find it very difficult to understand the business logic and operational methods of deep distribution (2B). It is even harder to understand the three-dimensional connection and BC integration. The core part of traditional manufacturers' marketing digitalization must be BC-linked digitalization. BC-linked digitalization will be repeatedly emphasized. This is the characteristic of traditional enterprises' marketing digitalization and the key to leveraging digital business to drive non-digital business. If digitalization cannot be combined with business logic, it becomes digitalization for its own sake. Some enterprises' digitalization systems have not played a role or have even become a burden, precisely for this reason.

The marketing digitalization I discuss is from the perspective of brand owners. If I discuss from other perspectives, I will explicitly state so.

-02- Marketing Digitalization vs. Digital Marketing Marketing digitalization and digital marketing are two different concepts. Many people confuse them. Marketing digitalization is about achieving marketing online and accumulating data online. Therefore, purchasing a system and having marketing online is necessary. Digital marketing mainly refers to the application of digitalization to marketing. However, digital marketing can be done without marketing being online. For example, digital product R&D mainly uses external data; digital communication also mainly uses external data. Yuanqi Forest sells through convenience stores, making it difficult for C-end users to be online, but that does not prevent them from doing digital R&D. Digital marketing, such as R&D digitalization and communication digitalization, involves fewer departments and mainly external data, so it can be started first. Marketing digitalization involves organizational transformation and process reengineering, which takes a long time. If not done well, it may have negative effects at certain stages. It should be piloted and implemented gradually.

-03- Four Major Modules of Digital Marketing Almost all areas can be digitalized. When undertaking digitalization, first clarify the framework of the brand owner, i.e., what digital modules exist; second, clarify the order of application of each module. Enterprise digitalization includes many modules, such as production digitalization, operation digitalization, logistics digitalization, and HR digitalization. Marketing digitalization is only a sub-module of operation digitalization. Operation digitalization also includes supply chain digitalization.

Brand owners' digital marketing has four major modules:

Module 1: Digital R&D How to use big data for product R&D? There are now relatively mature systems for digital product R&D. Because the data needed for R&D is mainly external, it can be obtained without extracting data from within the company, though internal data support would be better. Implementing the R&D module involves few departments and only a few core people. Therefore, I advocate applying the R&D module as soon as possible.

Module 2: Digital Communication The digital communication module also involves few people, mainly cooperating with some agencies. Digital communication also does not require internal data. The above two modules mainly use external data and do not involve internal organization and processes, so they will encounter less resistance in application. However, it is important to note that all digital applications have business logic behind them; not any digital system fits the enterprise's needs. For example, in product R&D, current digital applications easily arrive at the concept of "three zeros." But how did Yuanqi Forest's digital R&D derive this user need? If not done well, digital R&D becomes digital bandwagoning. Similarly, I do not particularly agree with some of the business logic of digital communication. Especially, the practice of precise communication by some multinational brands in recent years shows that the effect of precise communication is not satisfactory. It is said that traditional advertising "knows half the advertising budget is wasted, but not which half." Precise communication should be effective, so why is it unsatisfactory? I am an active practitioner of precise communication, but I think some of its logic is problematic. In the practice of three-dimensional connection, we proposed "blowing up a county online." Blowing up is itself the result of internet communication.

Module 3: Distribution Digitalization or Channel Digitalization The concepts of distribution digitalization or channel digitalization are not accurate. Traditional deep distribution can achieve 2B digitalization. If extended to the C-end to achieve BC integration, there will be 2B data, 2C data, and BC-linked data. This is important in this article and will be explained separately below.

Module 4: Digital Marketing Management Digital marketing management targets sales department personnel, agents, terminal store owners, and cloud store owners. This is a derivative of marketing data. Jinmailang's "Four-in-One" is more about marketing management digitalization than distribution digitalization, optimizing the behavior of "small workers" to do deep distribution well.

-04- Channel Digitalization Brand owners' channel digitalization can be discussed from multiple angles. For example, according to the object of digitalization, it can be 2B, 2C, or BC-linked digitalization. Brand owners' pure 2C mainly includes e-commerce and social e-commerce. E-commerce digitalization is mainly completed by platforms; I do not recommend social e-commerce. Therefore, pure 2C digitalization is unrelated to traditional channels. Brand owners' channel digitalization mainly involves 2B and BC-linked digitalization. Especially BC-linked, which is a marketing system that traditional marketing and e-commerce do not have. BC-linked, with both B-end and C-end online, forms data. Its power is more formidable than pure platform e-commerce 2C. Special emphasis: being online does not necessarily mean online transactions. One product, one code is actually online after the transaction. Data online after the transaction is still valuable. Based on my understanding and practice, the core of brand owners' channel digitalization has three major modules:

First, 2B SaaS systems. Although SaaS systems are relatively common, they are currently mainly used for field force management, with little real contribution to sales management or incremental growth. Even Jinmailang's "Four-in-One," which uses SaaS well, has not fully utilized the system. 2B digitalization is crucial for improving deep distribution effectiveness in the future. In the past, deep distribution was a human chain, a human wave tactic. In the future, 2B will mainly be a data chain; people only need to make precise visits and solve precise problems.

Second, BC-linked "one product, one code." The pace of one product, one code is relatively fast, but it has basically not achieved the effect of digitalization. It is mostly used for sending red envelopes, lacking corresponding marketing strategies and policies. This is a goldmine of digitalization with great potential for exploitation. The fast pace of one product, one code is mainly because it does not involve organization; it only solves problems at the production end. However, real application must be matched with marketing strategies and policies.

Third, BC-linked "cloud stores." The cloud store system reaches C-end through B-end, which is a very good method for user online presence. The three-dimensional connection we proposed in 2019 can be seamlessly integrated with the cloud store system. The proposal of the cloud store system means that future offline stores will have both the advantages of offline stores and online stores. Some people now view cloud stores as mini-programs of micro-malls and social e-commerce, which is a great misunderstanding. In the future, we will also focus on discussing this issue. Cloud stores are the standard configuration for future stores. One product, one code and cloud stores are both BC integration models. In 2020, BC integration was widely accepted as a new marketing model. Now some enterprises combine one product, one code and cloud stores, achieving better results. Functionally, the two may overlap.

-05- Digital Marketing Strategy Data serves marketing, not the other way around. Obtaining data is not the key to digitalization; formulating marketing strategies based on data is the core of digitalization. On Alibaba and Pinduoduo, users become addicted once they register and go online. Because formulating marketing strategies based on user data is the key to attracting users. From what I know, even if traditional enterprises have implemented digital systems, they basically lack related marketing strategies. Digitalization requires investment; only with supporting marketing strategies can it produce output. Now the penetration rate of one product, one code is relatively high, but there is basically no marketing strategy for it. Apart from scanning codes to send red envelopes, there are no other application strategies. The same is true for cloud stores. Cloud stores are BC-linked digitalization and should have many strategies and supporting policies, but now they are basically used as micro-malls for offline-to-online transition. Research on digital marketing strategies for traditional manufacturers is a new field. When planning marketing digitalization, manufacturers must study this simultaneously.

-06- Order of Digital Infrastructure Construction Should marketing digitalization be a "tough battle" first, or find a breakthrough first? Or implement everything at once? My view is: overall planning, gradual implementation; easy first, difficult later; incremental business first, then existing business; marketing first, then management. I advocate the following order:

First, modules involving fewer departments and people can be done first. The more people involved in digitalization, the harder the operation. The greater the difficulty, the higher the possibility of failure. Digital R&D and digital communication involve few departments and few people; some enterprises do them quietly. If needed, such digitalization can be done first. The high penetration rate of one product, one code is also because it only requires spending money and does not require the sales team's cooperation. In fact, this is only the initial stage. Using one product, one code's BC linkage to formulate marketing strategies requires considerable technical content, and when combined with marketing, the effect will be very good.

Second, do incremental business first, then existing business. For example, do new markets first, new customers first, new salespeople first, new products first. During transformation, there is a particular fear of existing business decline. A transformation cannot be said to be successful if sales have declined. Incremental business does not have the problem of transformation; it starts from zero.

Third, BC-linked takes precedence over 2B. In deep distribution, 2B is already very difficult. Digitalization also finds it hard to solve 2B problems. The current unsatisfactory application of SaaS is an example. In the past, channels could not reach 2C. As long as digitalization reaches the C-end, it will quickly show results. Once 2C shows results, doing 2B becomes relatively easier. Using BC-linked to leverage 2B, and using digital business to leverage non-digital business, will be the digitalization strategy for traditional manufacturers for a long time.

Fourth, sales takes precedence over management. Sales team management does need digital assistance. However, as long as the tool is used for internal management, it will become a "common enemy." Unless management has an iron hand and strong will. The better the business, the easier the management. First use digitalization to solve business problems, then solve management problems. This makes implementation relatively easier. Of course, the above order is only in principle. In specific application, it must be combined with the actual situation of the enterprise.