FUNDAMENTALS OFDIGITAL MARKETING

LEARNING OBJECTIVES

Defining Digital Marketing

Overview of traditional marketing approaches

Identify & evaluate innovations that have created new channels to reach consumers

LEARNING OBJECTIVES

Evaluate the role of the internet in reaching customers through multiple channels

Evaluate the changing nature of communication and CRM

Identify different channels of Digital Marketing

Defining Marketing

Marketing is an organisational function and a set of processes for creating, communicating

and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders.

(As defined 2004 by american marketing association)

Defining Marketing

Marketing is a way of thinking that puts the customer at the centre.

It is based on understanding the needs of customers and serving those needs,

competitively and at a profit.

Defining Digital Marketing

Achieving Marketing Objectives Through Digital Technologies

The Nature of Marketing

NEEDS

WANTS

DEMANDS

A State of felt deprivation:Physical – Food, Clothing, Shelter

Social – Belonging & AffectionIndividual – Knowledge and Self Expression

Form that needs take as they are shaped by culture and individual personality

Wants backed by buying power

Traditional Marketing Approaches

PRODUCT

PROMOTION

PLACE

PRICE

The 4 P’s of Marketing

Traditional Marketing Approaches

http://www.youtube.com/watch?v=u7jO6LkqoPc

Customer Centric Digital Marketing

Put the customer at the centre

Use

Digital technologies

To

Create and retain customers

By

Delivering products & services

that meet their needs

Market Innovation

Doing the same thing… Better

• Retail• Directory and portals• Online Auctions• Search engines• Web based mail• PPC search marketing• Search Engines• Online Publishing

• B2B Marketplaces• Social networks• Open Encyclopaedia• P2P web telephony• Video sharing• Web TV• Photo sharing• Government 2 Citizen

Digital Innovators

Why have these services become so successful?

What did they do differently?

Traditional Marketing Approaches

PRODUCT

PROMOTION

PLACE

PRICE

CUSTOMER

The 5th ‘P’ of Marketing

How the Internet supportsDigital Marketing

• Identifying Customers’ needs and wants through Market Research

• Anticipating Customer demands

• Satisfying Customer needs, wants and demands

• Managing the relationship with the Customer (CRM)

5 Core Marketing Concepts

NEEDS, WANTS & DEMANDS

PRODUCT OR SERVICE

VALUE & SATISFACTION

BUILDING RELATIONSHIPS

MARKET

A state of felt deprivation

Provides a solution

What the customer getsWhat the customer pays

Retain the customer by adding value and increasing loyalty

Monitor characteristics and trends

Alternate Marketing Concepts

PRODUCTIONCONCEPT

PRODUCTCONCEPT

SELLING CONCEPT

MARKETINGCONCEPT

SOCIETAL MARKETING CONCEPT

Concentrates on production and distribution efficiency.

Focuses on performance and innovative features

Focus on upgrades and upselling

Understand customer needs and create competitive

products

Monitor characteristics and trends

Fine as long as the customer wants what is produced.

Costs money to be at the cutting edge. Easy to forget

customer needs

People don’t like being sold to. They like buying

Retain the customer by adding value and increasing

loyalty

Monitor characteristics and trends

EXERCISE: In groups of 5 or more…

• Create a fictional product / service

• Identify how you would apply the 5 core marketing concepts to your product or service

• Which alternate marketing concept would serve you best?

Inside-Out Marketing

http://www.youtube.com/watch?v=qp0HIF3SfI4

WEB 2.0 – The Democratisation of the web

• Horizontal Revolution: Today information doesn’t just flow down from companies to customers. It flows between people and permeates geographical and social boundaries

• Social Media: Digital interaction. An online means of communication, collaboration and cultivation among interconnected people, communities and organizations.

WEB 2.0 – Characteristics

• Web services & interactive applications hosted on the web e.g. Flickr.com, Google maps...

• Supporting participation - Community• UGC – User Generated Content• Enabling rating of content• Data exchange between sites• Facilitates the use of rich media and creation of more interactive experience

• Rapid application development

Web 3.0

• Next Generation: Cloud Computing• high speed connectivity, complex cross community interactions

and an intelligent web where automated applications can access data from different online services.... e.g. www.dropbox.com

How businesses communicate is different now too…

http://www.youtube.com/watch?v=wg5jVrdCv68

How businesses communicate is different now too…

http://mashable.com/2012/06/26/user-generated-content-campaign/

New Channels to Communicate

Website SEO Paid Ads Social Media Blog Vlog E-Mail Marketing Viral content Mobile Content

Research for next week

Choose a current digital marketing campaign and comment on:

The Need / Want / Demand that it targeted

How the campaign utilised digital channels

The effectiveness of the campaign

< 500 words is sufficient

Upload to Moodle (Link TBC)