Transcript Part 1 Chapter 1 Digital marketing fundamentals Introducing digital marketing

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Part 1
Digital marketing fundamentals
Chapter 1
Introducing digital marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.2
Learning objectives
• 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.
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Questions for marketers
• 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?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.4
Online Opportunities
Timeline of online services indicating innovation in business model or
marketing communications approach
Table 1.1
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.1
Google timeline
Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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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
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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What is it?
Introducing the scope of digital marketing
• “Achieving marketing objectives through
applying digital technologies”
– How?
• Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.
Chartered Institute of Marketing
– How?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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A more in-depth definition
• Customer-centric digital marketing involves:
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Applying…
Digital technologies which form online channels…
(Web, e-mail, 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
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Which platforms are involved?
• What ways can you access the
Web or Internet through a browser?
– Dual-screening is important
– For suggestions, see p 12-13
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.2
Qype UK (www.qype.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.3
The intersection of the three key online media types
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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How do digital technologies contribute to
marketing?
• The definition of marketing by the Chartered Institute
of Marketing (http://www.cim.co.uk/) is:
• Marketing is the management process responsible
for identifying, anticipating and satisfying customer
requirements profitability
• Give examples of how the Internet (web and e-mail)
achieves these?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.13
How do digital technologies
support marketing
• 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.
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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YouTube video explaining the Tesco Homeplus Virtual Subway Store
presence in South Korea.
Figure 1.4
Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Benefits of digital marketing – The 5Ss
Table 1.2
The 5 Ss of Internet marketing
Source: Chaffey and Smith, 2008
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Applications of digital marketing
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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
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.5
North West Supplies Ltd site (www.northwestsupplies.co.uk)
Source: Opportunity Wales
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Summary and examples of transaction alternatives between
businesses, consumers and governmental organisations
Figure 1.6
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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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?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.7
The distinction between buy-side and sell-side e-commerce
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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What are the challenges
of managing strategy!
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Unclear responsibilities for digital
Setting objectives
Lack of budget
Budget wasted through experiments/duplication
Developing new propositions and campaigns to
compete
• Lack of measurement
– i.e. No plan!
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Why is a digital strategy needed?
• 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 email
marketing)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Different overlapping forms of web presence
Give an example of each
• 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
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.8
A generic digital marketing strategy development process
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.9
RACE: Reach-Act (Interact)-Convert-Engage.
Source: Smart Insights (2010)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Table 1.4
Key marketing communications concepts
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Six categories of e-communications tools or media channels
(Chaffey and Smith, 2008)
Figure 1.10
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.11
Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.12
Evolution of web technologies
Source: Adapted from Spivack (2007)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Differences of digital media
• 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
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Summary of communication models for (a) traditional media,
(b) new media
Figure 1.13
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Summary of degree of individualisation for: (a) traditional media
(same message); (b) new media (unique messages and more information
exchange between customers)
Figure 1.14
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.15
Channels requiring integration as part of integrated e-marketing
strategy
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.16
The role of mixed-mode buying in Internet marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Table 1.5
An interpretation of the differences between the old and digital media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Figure 1.17
Travel Republic (www.travelrepublic.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Fundamental digital
marketing concepts
• 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
• Permission marketing:
– A value exchange in return for communications and
profiling, e.g. Email opt-in, Like of brand on Facebook
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Content marketing activities
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Define content engagement value
Create content media / assets
Content syndication (influencer outreach)
Content participation
Content access platform
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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Content marketing approaches
All available from: http://pinterest.com/smartinsights/our-infographics/
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013