part 1 digital marketing fundamentals chapter 1 introducing digital marketing

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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013

Part 1 Digital marketing fundamentals

Chapter 1Introducing digital marketing

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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.

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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?

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Online Opportunities

Table 1.1 Timeline of online services indicating innovation in business model or marketing communications approach

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Figure 1.1 Google timelineSource: Google Corporate Timeline: www.google.com/about/corporate/company/history.html

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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

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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?

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A more in-depth definition

• Customer-centric digital marketing involves:

• 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

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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

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Figure 1.2 Qype UK (www.qype.co.uk)

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Figure 1.3 The intersection of the three key online media types

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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?

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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.

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Figure 1.4 YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South Korea.Source: http://www.youtube.com/watch?v=fGaVFRzTTP4

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Benefits of digital marketing – The 5Ss

Table 1.2 The 5 Ss of Internet marketingSource: Chaffey and Smith, 2008

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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

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Figure 1.5 North West Supplies Ltd site (www.northwestsupplies.co.uk)Source: Opportunity Wales

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Figure 1.6 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations

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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?

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Figure 1.7 The distinction between buy-side and sell-side e-commerce

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What are the challenges of managing strategy!

• 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!

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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)

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Different overlapping forms of web presenceGive 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

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Figure 1.8 A generic digital marketing strategy development process

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Figure 1.9 RACE: Reach-Act (Interact)-Convert-Engage.Source: Smart Insights (2010)

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Table 1.4 Key marketing communications concepts

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Figure 1.10 Six categories of e-communications tools or media channels (Chaffey and Smith, 2008)

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Figure 1.11 Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)

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Figure 1.12 Evolution of web technologiesSource: Adapted from Spivack (2007)

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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

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Figure 1.13 Summary of communication models for (a) traditional media, (b) new media

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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)

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Figure 1.15 Channels requiring integration as part of integrated e-marketing strategy

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Figure 1.16 The role of mixed-mode buying in Internet marketing

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Table 1.5 An interpretation of the differences between the old and digital media

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Figure 1.17 Travel Republic (www.travelrepublic.co.uk)

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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

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Content marketing activities

• Define content engagement value• Create content media / assets• Content syndication (influencer outreach)• Content participation• Content access platform

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Content marketing approaches

All available from: http://pinterest.com/smartinsights/our-infographics/

part 1 digital marketing fundamentals chapter 1 introducing digital marketing

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