Transcript What Digital Marketing?

Slide 4.1
Marketing on the Internet
Dr. Chantal Ladias
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.2
Questions
1. What is digital technology in marketing?
2. How can companies gain competitive
advantage from using digital marketing?
3. What is digital marketing communication?
4. What is consumer digital interactivity?
5. How can companies analyze and understand
consumer digital shopping behavior?
6. How do marketing managers use ICT and
digital technologies to support internal
marketing decisions?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.3
Disneyland Paris
http://disney.co.uk/
• 15 Million visits in 2013
• Using a combination of
technologies for
customers to come from
the virtual to the real world
and give the experience
throughout the Disney
movies, websites and
parks..
• Disneyland shows how
analytics and engagement
merge to produce a stunning
effect.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.4
The social media
• 47 Million like on Disney
Facebook
• Using social media
platforms to continue the
conversation in order to
increase engagement
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.5
What Digital Marketing?
Digital marketing refers to Information and
Communication Technologies influencing, among
others:
Analysis and planning: how to drive insight
Databases: Big Data
Communications: how to communicate
Research; Google analytics
Customer relationship management
Self-service technologies
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.6
Google and Search Optimization
• Search engine are
becoming reputation
engines
• 85% of internet surfers use
Google to access a website
• SERP = Search Engine
Result Page is like a
directory
• Wording is crucial
• Optimize your words for
research
•
•
Organic search
Paid search
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.7
Digital technologies for various
puposes
eCommerce:
sales,
supporting
sales,
distribution,
customer
services
eProcurement
Supporting
sourcing,
tendering and
fulfillment
processes
eManufacturing
Digital
technology
supporting
demand and
capacity
planning,
forecasting
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.8
Comparison Shopping
http://www.compareireland.ie/
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Slide 4.9
Etender.gov.ie
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.10
What is Digital Marketing
Communication?
Digital Marketing Communication is
communication and interaction between;
 a company or brand and
 its customers using digital channels and
 Information technology.
It facilitates interactivity, eWOM and online
communities.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.11
Internet users in the world
http://www.internetworldstats.com/stats.htm
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.12
Volume and percentages
Internet Countries
In Volume - China
dominates…
Still more growth ahead
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.13
The world of Apps
Access anything, anywhere….
Are the apps killing the web?
• 35% of consumers have online
retail applications (2013,
Mintel)
• Ability to access information
and purchase through Apps
• Potential for lucrative sales
channel
• Importance to adapt their
business models : click and
brick strategies with emphasis
on Smartphones and Tablets
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.14
Strengths and weaknesses of App
Strengths
Weaknesses
• Smartphone ownership: 1.6 M
Irish people own Smartphone
• Convenient purchasing
• Improving Mobile Internet
infrastructure: 4G
• High level of innovation: Failte
Ireland
• Increased targeting
opportunities
• Potential for increased sales..
Using a variety of channels
• Increased Smartphones and
tablet ownership
• Payment security: concern for
Irish people
• Lack of sensory experience:
touch – smell
• Privacy concerns: concern of
Big data
• Nomophobia a growing issue:
smartphone addicts?
• Lack of in-app purchases: too
expensive
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.15
The Long Tail theory,
(Anderson Chris, 2116)
• Amazon is making
most of its sales/profits
in the long tail.
• A bookshop operates in
the body and is limited
by the number of its
offerings.
• In a digital economy,
variety matters
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.16
Social media and networking
• http://www.youtube.com/watch?v=OXL
_e51dcwg&feature=player_embedded#
!
An explanation of what web 2.0 is and
how it has evolved
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.17
Dimensions of social networks
(Money et al, 99)
Tie strength
Strength of the interpersonal relationship
Intimate and special
Actor attributes
Similarity of attributes – homophily
e.g. age, gender, lifestyle, status, etc.
Source credibility
Perceived competence of the wesite
e.g. Tripadviisor and P2P
Trivago.ie
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.18
Characteristics of strong ties in
social networks
• A sense that the relationship is intimate
and special with a voluntary investment in
the tie and a desire for companionship with
the partner
• An interest in frequent interactions in
multiple contexts
• A sense of mutuality of the relationship
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.19
What is homophily?
Homophily refers to the tendency of
ties to occur between actors who have
similar attributes than between those
who do not.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.20
Source credibility
• It depends on a message source’s perceived
ability or motivation to provide accurate and
truthful information concerning the issue
under consideration.
• It is high if the source is perceived to have
high expertise and trustworthiness.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.21
Brand community types
• Exclusively consumer driven
with no interference from
companies: fan clubs Harley
Davidson
• Company driven with input
from consumers to customers:
lovemarks.com
• Consumer/customer-company
joint ventures : LEGO
community website
• Setting up a website
community does not guarantee
success!!!
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.22
Approaches to communicating
with brand communities
Fight
Opposition to a group e.g Real Madrid vs.
Barcelona or us vs. them
Role models
Backbone for a community e.g. Jamie Oliver
Exchange
Lugnet.com LEGO users group Network
Manifestation
Human needs for traditions, rituals, symbols
and icons
Progression
Constantly looking for progression:
Second Life
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.23
The LUGNET community
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.24
Second Life: a virtual world
For a short video on
Second Life go to:
www.youtube.com/watch
?v=ELysOAj89EU&featur
e=PlayList&p=C4B31251
A7F9F813&playnext=1&i
ndex=20
The St Patrick’s Day Parade in Ireland received 12 million visitors on Second
Life the virtual world on the Web
Source: Linden Research, Inc.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.25
The Social Technographics
Ladder of Engagement
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.26
Viral marketing
Advantages
• Inexpensive
• Active and
participatory
• Effectively targeted
through peer-topeer networks
Disadvantages
• Requires
technologically
compatible
programs
• Filtering programs
may prevent receipt
• Must be easy
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.27
Developing a viral
marketing campaign
Step 1: Create compelling content
Step 2: Target the right audience
Where is your audience, what does it follow
Step 3: Seed the message
With innovators and early adopters (2.5% - 13.5%)
Step 4: Control/measure results
Use blogs and social media to response an/or engage
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.28
Which Channel would you use?
Social Media Channel
Reasons
Facebook
Twitter
Google +
LinkedIn
Bloggs
YouTube, Myspace
Slideshare, Pininterest
Second Life, Mysapce
Come2Play
Living Social, Groupon
Tripadvisor
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.29
Select the social channels in the 4
zones
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.30
Research your social audience on
social bakers…
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.31
Nestle: Social Media Marketing (SMM)
Juicy Juice children drink through Twitter
• First global brand in 2009
to allow Twitter users to
post tweets into an ad
unit that can appear
anywhere on the web.
• Banner ad on a range of
parenting sites asking
“How do you stimulate
your child’s mind?”
• Users tweet their
responses and are
marketing their
engagement
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.32
Cardbury experimenting with social
networking
• New Product experiment:
Crème egg twisted bar
with “Goo on the loose”
• Consumers invited to
become Cardbury
Intelligence Agents
• CIA competition:
generating the most
exposure across all
platforms by sharing their
exploits on videos to win
£20,000 . Dean Stkes
was the winner
• https://www.youtube.com/
watch?v=aQSeCKWrSTo
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.33
Viral Marketing
Reflect on Kony 2012…
• Developing
compelling content
• Watch the video
• Evaluate what made
the video contents
so compelling
• https://www.youtube
.com/watch?v=Y4M
npzG5Sqc
• 100 Millions on
YouTube
• 70 Mill in one week
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.34
Email marketing- The killer application:
steps for creating a commercial email
• Email should identify person who initiated email
• Subject line should not mislead
• Return email address or Internet response
mechanism should be included
• Physical address of the company should be
included
• Message should contain clear and conspicuous
notice that the message is an ad or solicitation
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.35
Levels in permission marketing – EU directive on privacy and electronic
communications (2002/58/EC) the spam directive
Source: Adapted from E. T. Brey, S.-l. (A.) So, D.Y. Kim and A. M. Morrison (2007) Web-based permission marketing: segmentation for the
lodging industry, Tourism Management, 28, 1408–16. Copyright © 2007 Elsevier. Reproduced with permission
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.36
What is viral marketing?
Viral marketing is an
Internet adaption of marketing
using the word-of-mouth effect.
http://www.visiblemeasures.com/adage
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.37
Other digital
communication channels
• Search Engine Optimization: improving the volume
and quality of traffic through SERP (Search Engine Result Page)
• Wireless Internet access: Presence of “hot spots”
• Mobile phones: convergence trends
• Banner ads
• Interactive television
• Self-service technologies: Kiosks at airports
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.38
Mobile Phones and texting
• The real winner for the
mobile phone is texting
• 6.8 billion active users
dominated by developing
nations
• Broad band phones
representing only 30% but
with significant growth
• Convergence trends with
the usage of many functions
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.39
Facebook and mobile application
• Facebook is getting
a larger mind share
of the market
smartphone
http://online.wsj.com/news/articles/SB10001424
052702304428004579350971373442410
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.40
Self service technologies
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.41
What is search engine
optimization?
Search engine optimisation (SEO)
is the process of improving
the volume and quality of traffic
to a website from search engines.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.42
Perspectives on
consumer digital behavior
(Edelman David 2010)
• Now the Consumer Decision Journey:
• Consider
• Evaluate
• Buy ( The loyalty loop)
• Enjoy
• Advocate
• Bond
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.43
Potential determinants of consumer digital shopping behavior
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.44
Cultural influences on digital
shopping behaviour
• Human-like websites: Making the website more human
• Online personalization: recognizing your customers as individuals.
Amazon.com
• Product or service versioning: creating a version for each
customer
• Mass customization: Dell
• One-to-one personalization: assist.com offering personalized
letters or offering help online
• Customization: Implying tracking and conditional content
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.45
Cultural Influences on digital
shopping behavior (continued)
• Database, data mining and modeling data
• CRM software
• Marketing dashboards: on-screen easy to read summary
of key marketing metrics
• Biometrics: science of fingerprint and retina recognition
e.g. cars fitted with fingerprint matching
• Cashless future: technology impacting on payment and
pricing
• Gaming including multiplayers online games
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.46
The Omni channel approach
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.47
IKEA Uses online chat
to help customers
Source: © Inter IKEA Systems BV 2006
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.48
Company/customer interactivity –
Online social cues for website design
Language
Social role
Voice
Interactivity
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.49
CRM software:
As good as the information that is provided to it !
CRM is a software for gathering and managing customer information to improve
customer relationships and service provision
Source: SalesLogic CRM system from Scientific Computers Ltd (www.scl.com).
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.50
Apple New Pay system:
2nd mover advantage
Evolution rather than
revolution
•
•
•
•
•
•
Innovation
Released in October 14,2014
https://www.youtube.com/watch?v
=VY62ucifyH8
Building partnerships with key
players (83% of US credit cards
volume and major US retailers) to
make payments using iPhone 6 or
Apple watch
Using Touch ID fingerprint
scanner and iBeacon for locationbased information
Demonstration of how it works:
https://www.youtube.com/watch?v
=4I9MbIrlEUw
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 4.51
Cashless future:
RFID (Radio Frequency Identification)
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009