Part 1 Digital marketing fundamentals. Chapter 1 Introducing digital marketing 9/26/2014. Learning objectives. Questions for marketers

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1 Slide 1.1 Slide 1.2 Learning objectives Part 1 Digital marketing fundamentals Chapter 1 Introducing digital marketing Evaluate the relevance of digital platforms and digital media to marketing Evaluate the advantages and challenges of digital media Identify the key differences between customer communications for digital marketing and traditional marketing. Slide 1.3 Slide 1.4 Questions for marketers Online Opportunities What are the options for digital marketing to grow our business? What are the key benefits of digital marketing? What differences do the digital media introduce compared to existing marketing communications models? Table 1.1 Timeline of online services indicating innovation in business model or marketing communications approach 1

2 Slide 1.5 Slide 1.6 Definitions - warning Which definition is used isn t so important, within a company definitions help: Scope the digital marketing activities that need to be managed Explain opportunities for new marketing approaches digital transformation Highlights some risks to be managed Figure 1.1 Google timeline Source: Google Corporate Timeline: Slide 1.7 What is it? Introducing the scope of digital marketing Achieving marketing objectives through applying digital technologies How? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (American Marketing Association, Approved July 2013). How? Slide 1.8 A more in-depth definition Customer-centric digital marketing involves: Applying Digital technologies which form online channels (Web, , databases, mobile, iptv) to Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process and customer lifecycle) through Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs 2

3 Slide 1.9 Slide 1.10 Which platforms are involved? What ways can you access the Web or Internet through a browser? Dual-screening is important For suggestions, see p Figure 1.2 Qype UK ( Slide 1.11 Slide 1.12 How do digital technologies contribute to marketing? The definition of marketing by the Chartered Institute of Marketing ( is: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability Give examples of how the Internet (web and ) achieves these? Figure 1.3 The intersection of the three key online media types 3

4 Slide 1.13 How do digital technologies support marketing Slide 1.14 The growing range of digital marketing platforms Identifying the Internet can be used for marketing research to find out customers needs and wants (Chapters 7 and 10). Anticipating the Internet provides an additional channel by which customers can access information and make purchases evaluating this demand is key to governing resource allocation to e-marketing as explained in Chapters 2, 3 and 4. Satisfying a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched? These issues of customer relationship management are discussed further in Chapters 6 and 7. Desktop, laptop and notebook platforms Mobile phone and tablet platforms Mobile marketing Location-based marketing Mobile-based apps Other hardware platforms Gaming platforms Indoor and outdoor kiosk-type apps Interactive signage Slide 1.15 Slide 1.16 Introduction to Digital Marketing Strategy Figure 1.4 YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South Korea. Source: Positioning and Target Marketing Online Value Proposition Multichannel Marketing An effective Internet marketing strategy should: Be aligned with business strategy Use clear objectives for business and brand development Be consistent with the types of customers Define a compelling, differential value proposition Specify the mix of online and offline communication tools Support the customer journey Manage the online customer lifecycle 4

5 Slide 1.17 Slide 1.18 Applications of digital marketing An advertising medium A direct-response medium A platform for sales transactions A lead-generation method A distribution channel A customer service mechanism A relationship-building medium Benefits of digital marketing The 5Ss Table 1.2 The 5 Ss of Internet marketing Source: Chaffey and Smith, 2008 Slide 1.19 Slide 1.20 Figure 1.5 North West Supplies Ltd site ( Source: Opportunity Wales Figure 1.6 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations 5

6 Slide 1.21 Slide 1.22 E-business and e-commerce You are attending an interview for a job in an E-commerce department. You are asked to: Define e-commerce Explain the relationship between e-commerce and e-business? Figure 1.7 The distinction between buy-side and sell-side e-commerce Slide 1.23 Slide 1.24 Why is a digital strategy needed? Different overlapping forms of web presence Give an example of each To set clear goals for digital channels To align with business strategy (avoid ad-hoc approaches) Create a specific online value proposition (OVP) Specify communications tools to drive visitors Integrate digital and traditional channels Manage customer lifecycle (e.g. through marketing) Transactional e-commerce site: Examples Amazon, Dell Services-oriented/relationship building Accenture, British Gas Brand Building site Tango, Guinness Portal or media site Yahoo! Silicon.com Social network or media site Note that these types overlap 6

7 Slide 1.25 What are the challenges of managing strategy! Slide 1.26 Applying the 7 Ss Unclear responsibilities No specific objectives Lack of budget Budget wasted through experiments/duplication Developing new propositions and campaigns to compete Lack of measurement i.e. No plan! Experimental rather than planned approach 1. Strategy 2. Structure 3. Systems 4. Staff 5. Style 6. Skills 7. Superordinate goals Slide 1.27 Slide 1.28 Introduction to Digital Marketing Communications Pay-per-click Search engine optimisation Affiliate marketing marketing Landing page Rich media Figure 1.8 A generic digital marketing strategy development process 7

8 Slide 1.29 Slide 1.30 Table 1.4 Key marketing communications concepts Figure 1.9 RACE: Reach-Act (Interact)-Convert-Engage. Source: Smart Insights (2010) Slide 1.31 Slide 1.32 Social Media Marketing Monitoring and facilitating customer-customer interaction and participation throughout the web to encourage positive engagement with a company and its brands Figure 1.10 Six categories of e-communications tools or media channels (Chaffey and Smith, 2008) 8

9 Slide 1.33 Slide 1.34 Figure 1.11 Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011) Figure 1.12 Evolution of web technologies Source: Adapted from Spivack (2007) Slide 1.35 Slide 1.36 Benefits of digital media Differences of digital media 6 Is of the e-marketing mix: 1. Interactivity 2. Intelligence 3. Individualization 4. Integration 5. Industry restructuring 6. Independence of location Split into groups For each of 1.13 to 1.16 students summarise differences between traditional media and digital media and how they can be used to advantage by companies 9

10 Slide 1.37 Slide 1.38 Figure 1.13 Summary of communication models for (a) traditional media, (b) new media Figure 1.14 Summary of degree of individualisation for: (a) traditional media (same message); (b) new media (unique messages and more information exchange between customers) Slide 1.39 Slide 1.40 Figure 1.15 Channels requiring integration as part of integrated e-marketing strategy Figure 1.16 The role of mixed-mode buying in Internet marketing 10

11 Slide 1.41 Slide 1.42 Table 1.5 An interpretation of the differences between the old and digital media Figure 1.17 Travel Republic ( Slide 1.43 Key challenges of digital communications Complexity Responding to competitors Responding to changes in technology Cost Attention Slide 1.44 Fundamental digital marketing concepts 1. Customer engagement: Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand cscape the level of involvement, interaction, intimacy, and influence an individual has with a brand over time Forrester 2. Permission marketing: A value exchange in return for communications and profiling, e.g. opt-in, Like of brand on Facebook 11

12 Slide 1.45 Slide Content marketing activities Content marketing approaches Define content engagement value Create content media / assets Content syndication (influencer outreach) Content participation Content access platform All available from: 12