Slide 1.

Part 1
Digital marketing fundamentals

Chapter 1
Introducing digital marketing

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.2

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 digital media introduce
compared to existing marketing
communication models?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.3

Online opportunities

Timeline of online services indicating innovation in business model or

Table 1.1
marketing communications approach
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.4

Online Opportunities (Continued)

Timeline of online services indicating innovation in business model or

Table 1.1
marketing communications approach (Continued)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.5

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.6

MOST POPULAR E-MARKETPLACES

Region/Country Product Category Aylık
Ziyaretler
AMAZON Global General 5,7 milyar
PayPay Mall Japan General 2,1 milyar
eBay Global General 1,6 milyar
Mercado Libre Latin America General 661,7 milyon
AliExpress Global General 639,1 milyon
Rakuten Global General 621,5 milyon
Taobao China General 545,2 milyon
Walmart.com ABD General 469,0 milyon
JD.com Global General 318,2 milyon
Etsy Global Art&Handmade&Souvenir 266,3 milyon

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.7

IN 2019:
1,92 BILLION PEOPLE DID ONLINE SHOPPING
14,1 OF RETAIL SALES CAME FROM E-SALES
THE PERCENTAGE OF MOBILE COMMERCE IN ONLINE
COMMERCE IS %67
The WINNERS ARE:
1. TAOBAO (515 Billion Dollars)
2. TMALL (432 Billion Dollars)
3. AMAZON (344 Billion Dollars)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.8

ACCORDING TO 2020-
2024 ESTIMATION,
WITH %20.2,
TURKEY HAS THE
HIGHEST E-
COMMERCE
GROWTH RATE

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.9

E-COMMERCE IN TURKEY

1998 •Hepsiburada.com
2001 •Gittigidiyor
2009 •Trendyol
2012 •n11.com
2018 •Amazon.com.tr

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.10

E-COMMERCE IN TURKEY
2021
1. Clothes, shoes, and
accessories (%70,07)
2017 2018 2019 2020 2021
Internet Use 2. Food order or catering
services (%40,8)
Man %75,1 %80,4 %81,8 %84,7 %87,7
Woman %58,7 %65,5 %68,9 %73,3 %77,5
3. Cosmetics, beauty and
Online Shopping health products (28,7)
Man %29 %33,6 %38,3 %40,2 %48,03
4. Books, magazines, and
Woman %20,9 %25 %29,9 %32,7 %40,3
journals (%27,7)

5. Cleaning products,
personal care supplies
(%27,6)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.11

Introducing the Scope of Digital Marketing

• ‘The application of the Internet and other

related digital technologies with traditional
communications to achieve marketing
objectives.’
• Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.
Chartered Institute of Marketing

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.12

How do Digital Technologies

Contribute to Marketing?

• How does internet help?

• Identifying – the Internet can be used for marketing research to find out
customers needs and wants.

• 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.

• 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?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.13

Which platforms are involved?

Desktop, laptop and notebook platforms
• Desktop browser-based: Internet Explorer, Google Chrome etc.
• Desktop apps: Apple App Store
• Email
• Feed-based and API data exchange
• Video marketing: IPTV
Mobile phone and tablet platforms
• Mobile operating system and browser: Google Chrome, Safari, Samsung
Internet etc.
• Mobile-based apps
Other hardware programs
• Gaming platforms: PlayStation, Nintendo, etc.
• Indoor and outdoor kiosk-type apps: interactive kiosk and augmented reality
options
• Interactive signage: Touchscreen, Bluetoothi etc.
• Wearables: smart watches, smart glasses
Software platforms for managing modern marketing (e.g. infrastructure
services, marketing backbone platforms)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.14

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 life cycle)
• through…
• Improving customer knowledge (of their profiles, behavior, value and
loyalty drivers), then delivering integrated targeted communications and
online services that match their individual needs

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.15

Figure 1.2 The intersection of the three key online media types

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.16

Benefits of Digital Marketing – The 5Ss

Table 1.2 The 5Ss of Internet marketing

Source: Chaffey and Smith (2012)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.17

Benefits of Digital Marketing

How can Internet be used to achieve these four expansion strategies?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.18

Figure 1.9 A generic digital marketing strategy development process

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.19

Applications of Digital Marketing

• An advertising medium
• A direct-response medium
• A platform for sales transactions
• A distribution channel
• A customer service mechanism
• A relationship-building medium.

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.20

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 life cycle (e.g. through email
marketing).

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.21

What are the Challenges of Managing Strategy?

• Planning
• Organizational capabilities
• Integration of digital channels into marketing
• ROI evaluation

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.22

Summary and examples of transaction alternatives between businesses,

Figure 1.6
consumers and governmental organisations
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.23

Figure 1.10 RACE: Reach–Act (Interact)–Convert–Engage

Source: Smart Insights (2010)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.24

Figure 1.11 Six categories of e-communications tools or media channels

Source: Chaffey and Smith (2012)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.25

Figure 1.12 Evolution of web technologies

Source: Adapted from Spivack (2007)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.26

6Is of Digital Marketing

• Interactivity
• Intelligence (low cost of collecting consumer
data)
• Individualization
• Integration
• Industry restructuring (disintermediation, re-
intermediation)
• Independence of location
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.27

Summary of communication models for (a) traditional media,

Figure 1.13
(b) new media
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.28

Summary of degree of individualisation for: (a) traditional media

Figure 1.14
(same message); (b) new media (unique messages and more information
exchange between customers)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.29

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

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.30

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. E-mail opt-in, Like of brand on
Facebook.

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.31

Fundamental Digital
Marketing Concepts
• Content Marketing:
– is a form of marketing focused on creating,
publishing, and distributing content for a targeted
audience online.
• Content Marketing Activities:

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016