Digital Marketing

Communication
Lecturer: Elke Alexandrina, MSc.
BOOKS
 Chapter 1, 2
Internet Marketing as Part of the Marketing
Communication Mix

Elke Alexandrina
Internet Goes Mainstream

• HTML ( HyperText Markup

Language)
• Mosaic Browser in 1993
• Nestcape Browser
• Yahoo! in 1995
• Mosaic to Google
The Bubble Burst/Failures
1. Flooz (1999-2001): digital currency.
2. Pets.com (2000): pet food
3. Boo.com (the largest dotcom failure)
(2000): selling designer sports brand
in Europe and US.
Causes of failures:
1. It is ok to sell products for less than
what they cost you, bring more
customers.
2. Immune to economic cycles
3. Cannot spend too much on
advertisement
4. It is ok not to carry inventory, would
be profitable
Web 1.0, Web 2.0 and Web 3.0
Web 1.0
• Flat data.
• Limited interaction between sites and web users.
• Simply an information portal where users passively
receive information without being given the
opportunity to post reviews, comments, and feedback
Web 2.0
• It is the “writable” phrase of the World Wide Web with
interactive data.
• Facilitates interaction between web users and sites, so
it allows users to interact more freely with each other.
• Encourages participation, collaboration, and
information sharing.
• Examples of Web 2.0 applications are Youtube, Wiki,
Flickr, Facebook, and so on.
Web 3.0
• It is the “executable” phrase of Word Wide
Web with dynamic applications,
interactive services, and “machine-to-
machine” interaction.
• Semantic web which refers to the future.
• In Web 3.0, computers can interpret
information like humans and intelligently
generate and distribute useful content
tailored to the needs of users.
• Tivo, a digital video recorder. Its
recording program can search the web
and read what it finds to you based on
your preferences.
The Internet Users
Info graphics
Geographics
Demographics
Behavior of Internet Users
Reasons for using Internet
Digital Lifestyles
Internet Infrastructure Stack
Strategic Drivers of the Internet
Economy
1. Information creates added value.
2. Sixe and distance do not matter in many
types of communications and transactions.
3. Speed and flexibility.
4. People are the key assets in Internet
enterprise.
5. Growth in the network causes increase in
value.
6. Marketers deal with customers on a one-to-
one basis.
7. Demand can be predicted with greater
accuracy.
8. The nature of transaction has changed.
9. Customers have power in information-rich
 Chapter 3
Business Models and Strategies
What is Business Models?
• How a company makes money or not-for-
profit organization achieves its revenue
objectives, how an entity sustains itself.
Business Model Canvas
Internet Business Models
Business Models
1. Brokerage Model: Bringing Buyers and Sellers
Together. Example: ebay,B2B Marketplaces,
Kaskus.
2. Advertising Model: Delivering Messages with
content. Content on a website or in an email
can be sponsored, providing another type if
opportunity. Example: Yahoo, Google,
Facebook,detik.com,
3. Infomediary: Reselling Useful Data. A website
that gathers and organizes large amounts of
data and acts as an intermediary between those
who want the information and those who supply
it. Example: Google, Sharethis, Nielsen,
InfoUSA.
4. Manufacturer Model. A company that creates a
product or service. Example: Dell Computer,
new York Times, Harvest Cake.
Business Models
5. Community Model: Connecting Individual
to Groups. A business based on user loyalty
and repeat engagement. Example: America
Red Cross, RuangGuru.com, Kitabisa.com
6. Subscription Model: Delivering Services
and Content for a Set Fee. Example: Netflix,
Iflix, Jukebox, Spotify.
7. Utility Model: Delivering Services or
Content “Pay as You Go”. Example: First
Media, Skype, Indovision, telco provider.
 Chapter 4
Database Foundations of Internet Marketing
The Internet as a Direct Response Medium
• It is an Interactive channel, allowing two-way dialog between marketer
and prospective customer using direct response techniques or social
media.
• All marketing activities on the web have the potential to be
Information-driven.
• The Internet fosters Immediacy in a variety of ways. Marketers can
reply directly to customer queries, using human agents or automated
systems.
• Internet promotions can also be Involving. Marketers are increasingly
using streaming video, games and other types of media in Internet
advertising to attract and involve prospective customers.
Generic Direct Marketing Strategies
• Acquisition
• Conversion
• Retention and Customer Value Growth
Critical Strategy Elements
1. The Offer (product, price, positioning)
2. The List (the targeting vehicle)
3. The Media used (any medium can be
direct response)
4. The Creative Execution (action-oriented
context)
5. The Service and Support (experience and
stimuli)
Customer Lifetime Value (CLV)

• What it cost to acquire, maintain and service

a customer.
• Make a reasoned decision about how much
to spend to market a product/service to that
customer.
Customer Database
• Customer Profiling
• Segmentation Analysis
• Predictive activities
 CUSTOMIZATION
PERSONALIZATION
TRANSACTION

INTERACTION

INFORMATION

Hierarchy of Customer-Focused Marketing Strategies

 Chapter 5
Online Branding and Video Marketing
Marketing Effectiveness in the Age of New
Media
• The power of IMC mix that includes the
Internet as one component.
• Internet as a branding medium.
• The power of video, online advertising,
email and search as part of IMC
campaigns.
• Increasing interest in social media
marketing.
 Consumer Media Habits in the Internet
Age
• On-demand media that is available 24/7/365
Marketing Effectiveness in the Age of
New Media

• The power of IMC mix that includes the

Internet as one component.
• Internet as a branding medium.
• The power of video, online advertising,
email and search as part of IMC campaigns.
• Increasing interest in social media
marketing.
Consumer Media Habit
Media Habit:
• DVD
• Digital Video Recording
• Pay-Per-View and Video on Demand
• Video Streaming
• A proliferation of sites offering online
video games.
The Effectiveness of Online Advertising and
Promotion
• Among all media:
• TV
• Magazine
• Newspapers
• Online
• Which one is Best Suited for?
Why:
1.Driving Traffic/Purchase Intent
2.Creating Awareness
3.Promoting Consideration
4.Generating Familiarity
5.Promoting Loyalty
Consumer Decision Journey…
1.Company-Driven Marketing
Initial Consideration
• Traditional Advertising
• Direct Marketing
• Sponsorship
• In-store product experience
• Salesperson contact

2.Past Experience Active Evaluation

• Positive or Negative

3.Consumer-Driven Marketing
Closure

• Word of Mouth
• Online Research
• Offline and/or print reviews
•Building
Brand EquityInternet Brand
and Brand Image
Brand Equity: the set of associations and behaviors on the part
of the brand’s customers, channel members, and parent
corporation that permits the brand to earn greater volume or
greater margins than it could without the brand name and
that gives the brand a strong, sustainable and differentiated
advantage over competitors. (financial assets and competitive
advantages)
Brand Awareness
 Brand Recognition: remember seeing/hearing about a brand
 Brand Recall: Being able to remember information about a
product/brand
Brand Image: strong, positive brand associations
• Creating a Strong Brand on the Internet
• Awareness
• Familiarity
• Positive Imagery
• Completed Transaction
 Building Local Brand through Online
Marketing
http://searchengineland.com/build-local-brand-online-marketing-190389

• Brand gives identity

• A brand encapsulate the product, personality and values of a business
and enables these to be easily understood and appreciated by
customers.
• Having a strong brand builds familiarity between a business and its
customers, which makes selling to customers much easier.
• Brands Vs. Keywords & Locations
6 Ways To Enhance A Brand:
1. Consistent Branded Citations
2. Reputation Marketing
3. Social Profile Consistency
4. Publish Authority Content
5. Community Engagement
6. Video Marketing
Video Marketing
•The Reach of Video:
1.Consumer use of Video
2.Business Response
Video Marketing Strategy
 Publishing
 Developing customer-relevant content and stories
 Decide types of content
 Marketing objectives
 Identify Target Audience
 Make the content relevant to your audience
 Integrate the content across multiple social media marketing channels

 Optimizing for Search and Sharing

 Catchy Title, encourage user ratings, post on YouTube, using vide platform,
 Keep video brief/summary.

 Promote
 Post video on own channels, on other content channels,
 feature a link/embed video, write a blog post about the video,
 Post on Facebook or Tweet it, post on other’s publishers or
 social bookmarking sites, etc.

 Analyze
 Use Video Analytics or metrics by YouTube.
Video Marketing for Small Business
• Show your product in action.
• Give instruction and advice.
• Let your customers become fans by
reviewing and sharing yours or even
producing their own.
• Post your videos on your website as well as
on your vide-sharing platform of choices.
• Study the analytics by the platform.
 Chapter 6
Display advertising and
Other customer acquisition
techniques
 Offline advertising
Internet Customer Acquisition Tools
Events and PR
and promotion
Social Media
Marketing
Email Promotions

Affiliate Marketing

Online Advertising
Newly Acquired
Portal Deals
Customers
Search Engine
Marketing
Viral Marketing
TYPES of ONLINE Advertising
•DISPLAY ADVERTISING
• Includes copy, graphics and corporate branding
elements, like logos.
• Can be static or dynamic or making used of rich media
formats.

• SEARCH ADVERTISING – Chapter 8 SEARCH MARKETING

• Include various paid formats like pay-per click (PPC),
SEO, pay-per-view (PPV) or pay-per-impression (PPM)

• SOCIAL MEDIA ADVERTISING

• Comprises standard display formats and platform-
specific formats like Facebook Ads, Twitter,, etc.
DISPLAY ADVERTISING
Online Display Advertising
• Online Advertising Formats
See page 152, Standard Online Display Ad Formats

• Rich Media Ads

 Rich media is an Internet advertising term for a Web page ad that uses advanced
technology such as streaming video , downloaded applet s (programs) that interact
instantly with the user, and ads that change when the user's mouse passes over it.
 Do your research,
 Keep it simple,
 Tell a compelling story,
 Lead to Action,
 Make sure the landing page and websites are easy to take action.
 Keep the file size small for quick and smooth loading.
 Strong and attention-getting headline.
 Choose the right color.
 Choose sites that are appropriate for your target audience
 Test your ads.
WHY must target?
Online Advertising targeting methods
1. Demographic
How people actually live their lives.
2. Behavioral
Segmenting customers on the basis of actual behavior, in this case their
activities on web
3. Contextual
Targeted according to the content of the page the person is currently
visiting. (ads that are clearly base on the content)
4. Channel
Example: entertainment, politics, health, music, etc.
5. Geographic
Through advertising opportunities offered by service like Google Places
and Yahoo! Local, which allows local business to advertise to a local
audience in a cost-effective manner.
6. Re-targeting
Switch to another method for better result.
CHANNEL TARGETING
Behavioral targeting
1.Targeting Identified Users  straightforward
customers
2.Targeting Unidentified Users  anonymous
customers
3.Targeting with Predictive Models use
relevant data
BEHAVIORAL TARGETING
Social Network Advertising
Option

• Facebook Advertising
• Advertising on Blog
• Advertising on LinkedIn
• Event-Driven Marketing
• Trade-shows, exhibitions, conferences, seminars
• Affiliate Program
• Amazon.com
• Portal relationships
• Yahoo and AOL, Detik.com and Wolipop
• Viral Marketing
• Is a promotion that either by design or by accident,
catches on with Internet users and is passed from one to
the other, multiplying the effectiveness of the original
distribution.
• (mostly videos)
Social Media
Press Release
Template

Generating Publicity
Affiliate Programs

An affiliate program is a marketing program where you can receive

commission for helping a parent company (such as HostGator,
Amazon) generate sales.
 Chapter 7
EMAIL MARKETING TO BUILD CONSUMER
and business relationship
Why email?
E-mail Vs. Direct Mail
 Cheaper/Lower Cost  $.25 vs. $1.25

 Quicker Result/Faster  3-6 days Vs. 3-6

weeks

 Higher Response/Effective  5-15% Vs. 1-

2%
 Evolution Of Email Marketing:

3rd Generation
Customer Engagement
• Focus on individual
• Personalized content
• 1 to 1
2nd Generation • Dialogue
• Permission Marketing • Closed loop
• Responsible • Worth opening
• Segmented
• Usually relevant
• Value add
1st Generation
Broadcast, SPAM:
• High Volume
• Send and Forget
• Not relevant
Developing an email marketing
campaign
1. Gather Customer Data (internal and external) 2. Derive Customer Insights
• Contact Information • Customer Needs
• Offer, interaction, Privacy Preferences • Customer Value
• Customer Interaction history • Customer Feedback
• Offers or products customer will need next

4. Evaluate Response 3. Suggest Proactive Action

• Track and monitor click-through and open • Robust Privacy protection
• Customer Feedback • Develop customized email marketing campaign
• Customer Engagement • Refine campaign based on results and insights
• Train marketing and sales staff
Using email service providers

Help get emails delivered through ISP’s

Aid/help in tracking, measurement
Provide Database integration
Manage content dynamically
Integrate with social media and other campaign
Email Design:
 Preheader
 Subject Line
 Offer or call to action
 Time deadline, sense of urgency
 Web design principles (golden triangle)
 CAN-SPAM
•(include reply-to, unsubscribe and be compliant)
 Viral Marketing
 Social Media

Note; CAN-SPAM: Controlling the Assault of Non-Solicited Pornography

And Marketing Act.
The Golden R’s of Email marketing:
• RELEVANCE
• Content should be applicable to the recipient’s needs and
life style

• RESPECT
• Relevant content cannot be generated without in-depth
information about recipient

• RECIPIENT CONTROL
• Obtaining permission to communicate with recipient. Make
the recipient partners in deciding what content he wants to
receive and how often he wants to receive it.
 Chapter 8
Search Marketing: SEO
(search Engine Optimization)
Search Engine
Search Engine optimizationMarketing
PPC (Pay Per Click)
• Better Response • Immediate Results based on
bidding system in which
• More return traffic there are charges for clicks
received
• Lower cost
• Daily budget can be limited
• Long term marketing
solution • Gives definite search volume

• Brand recognition and • Easy to change focus

loyalty • Unlimited keywords
• Ability to test (keywords, ad
copy, landing pages)
 Organic Search

• Organic SEO (search engine optimization), sometimes

referred to as natural search optimization
• is the process of improving the rankings of a website in
search engine results for specific targeted keyword phrases.
• Organic search results are "free" in a sense - that is, you
don't pay for a listing in the search results pages for your
keywords, as you do with pay per click advertising, like
Google's AdWords and others.
• Unlike paid search, the benefits of organic SEO can be seen
long after the initial search engine optimization work has
been completed.
• With paid search, your ads in the search engine listings stop
once you stop paying for them or you have met your
budget.
• Organic SEO techniques, on the other hand, can keep
showing up for an indefinite time period.
How to do organic search
• Keyword research. Keyword research is the process of
selecting words and phrases that members of your
targeted website audience might use when conducting a
web search.
• SEO copywriting.  involves creating content for your
website that centers on the keywords you've targeted.
• On-page optimization. This step involves optimizing the
code, text and the anchor text used for hyperlinks
throughout your website. for your search engine
optimization campaign will bring the audience you are
targeting for your website.
• Link building.  is the process of finding other places on
the web - like blogs, other websites on topics related to
yours and online directories
• Other website promotion techniques. Additional website
promotion techniques, such as blog marketing, article
marketing and distributing online press releases can also
help build links to your website, thereby improving your
organic search engine optimization rankings over time.
 Chapter 9
Customer relationship development and
retention marketing
Customer Relationship Management
• In the old days focused on acquiring and
managing data that provided insights for
• marketing programs that led to successful
customer relationships.

• With the advance of Social Media Marketing

(SMM)—allowed marketers to listen to
• what customers are saying and to engage in
real-time dialog with them.

• CRM turned into Customer Relationship

Marketing or Customer Retention Marketing
Elements of CRM
1.Transactional Vs. Relationship
Perspective

Versus

•2. The B2B Foundations of CRM

Transactional Versus Relationship
Developing CRM Strategy
Thoughtful Data

1.Identify your
customers.
2.Differentiate them
according to their
needs and actual
or potential value
3.Interact with
customers based
on their needs
4.Customize some
aspects of the
organization's
dealing with the
customer
Thoughtful data will give…
1.Differentiated messages  leads to
effective communications
2.Customer Segmentation  by
socialgraphics and customer value and
opportunity to grow value
3.Lifecycle Communications  depends on
the customer’s position in the relationship
cycle.
4.Active Management and monitoring
performance  using indicators
 Chapter 10
Customer service and support in web
space
Impact on Customer Service
problems…
Customer complains
Satisfied/Dissatisfied/Mollified
Will purchase/will not repurchase
Customer service champions…
• Apple
• The Ritz Carlton
• Barnes and Noble
• Ace Hardware
• Starbucks
• Jaguar
• Charles Schwab
• Enterprise Rent-A-Car
• Dell
• Southwest Airlines
What Complain wanted…
• To be treated with dignity
• Product repaired/service fixed
• Explanation of problem
• An assurance that the problem would not be
repeated
• Express my anger
• A thank you
• An apology
• My money back
• Free product/service in the future
• Financial Compensation
• Revenge
 Chapter 11
mobile marketing and related
development
 Strategic Drivers of Mobile
Marketing
• Context
• Localization and personalization
• Growth of Social Networks
• Time Sensitive
• High Value
• Voice Activation
• One-click payment mechanism
• Security
• Privacy
• Expanded Permission marketing
Mobile Marketing Campaign Planning

1. Who are the customers and where are they

accessing content?
2. What attitudes do member of the target
audience hold about our brand?
3. What message will be compelling?
4. When to send messages and how often
both refer to important strategic drivers of
mobile marketing?
5. What action do we want the mobile user to
take?
6. What metric will be used to measure the
success of the campaign?
Other Technologies:

• Location Based Marketing

• Barcode Marketing
• Near Field Communication (NFC)
• Podcasting