Digital Marketing Strategy Implementation and Prac 220825 185854

Instructor’s Manual
Digital Marketing
Eighth edition
Dave Chaffey
Fiona Ellis-Chadwick
For further instructor material

please visit:
go.pearson.com/uk/he/resources
ISBN: 978-1-292-40101-0
 Pearson Education Limited 2022

Lecturers adopting the main text are permitted to download and photocopy the manual as required.
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Sixth edition published 2016

Seventh edition published 2019
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ISBN 978-1-292-40101-0
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Contents
Parts and Chapters Pages
Part 1 Digital marketing fundamentals 5
Chapter 1 Introducing digital marketing 6

Chapter 2 Online marketplace analysis: micro-environment 19
Chapter 3 The digital macro-environment 34
Part 2 Digital marketing strategy development 49
Chapter 4 Digital marketing strategy 50

Chapter 5 Digital branding and the marketing mix 62
Chapter 6 Data-driven relationship marketing using digital platforms 72
Part 3 Digital marketing: implementation and practice 83
Chapter 7 Delivering the digital customer experience 84

Chapter 8 Campaign planning for digital media 95
Chapter 9 Marketing communications using digital media channels 105
Chapter 10 Evaluation and improvement of digital channel performance 115
3
4
Part 1
Digital marketing fundamentals
5
CHAPTER 1
Introducing digital marketing

One sentence overview
What and Why? An introduction to the fundamental concepts of digital marketing and the
book structure.
The chapter is structured around the 7Ds of digital marketing (Figure 1.2, Slide 1.6)
Notes on using slides for the first chapter in lectures – lesson plan
Learning objectives and topics
The three learning objectives relate to 7Ds as shown in Slides 1.2 and 1.3. Objectives cover:
• Business options and challenges explored through digital goals and audiences
• Digital communications options that can be delivered via devices, platforms and media
• Using marketing data and marketing technology to improve media use and experience
What is digital marketing?
Ask students how they define it without mentioning specific tools or channels. Their answers
should mention the 7Ds – so can relate to that.
Slide 1.4 gives the succinct book definition. Highlight the need for integration and how traditional
media remain important.
Slide 1.5 (Figure 1.1) shows the range of digital media across paid, owned and earned which have
different costs, so which are used varies by budget available. Which would be the best for startups
on low budget?
Slide 1.6 (Figure 1.2) is the 7Ds.
Slide 1.7 explains how links to statistics, recommended sites and latest trends for each chapter
are available from www.davechaffey.com/book-support.
Slide 1.8 Burger King Brazil uses a mobile app to give an example of how the 7Ds can be applied
to one digital engagement campaign.
Digital marketing goals and strategy
Slides 1.10 and 1.11 introduce the RACE marketing framework to define digital marketing
activities.
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Dave Chaffey and Fiona Ellis-Chadwick, Digital Marketing, 8e, Instructor’s Manual
Slide 1.12 presents the 5Ss in Table 1.1 as a simple way to present goals.
Slide 1.13 shows how the primary goal varies for different types of business. Ask students to
relate the 5S goals to each type of business.
Slide 1.14 (Figure 1.4) shows that in larger organisations there are many barriers for adopting
digital marketing and can be used to introduce the popularity of digital transformation.
Slide 1.15 (Figure 1.5) describes a typical process-based structure for digital marketing planning
that is expanded upon in Chapter 4.
Digital marketing audiences and buyer behaviour
Slide 1.18 (Figure 1.6) covers broad digital audience types and corresponding sites used to serve
them. Students can be prompted about the most commonly used sites they use in each category.
ComScore provides data on-site popularity in many countries.
Slides 1.19 to 1.22 provide four alternative frameworks for considering the difference in
interactions between traditional and digital media.
The 7Ds and key concepts
Slide 1.24 (Figure 1.11) is significant for summarising six core digital media channels. These are
related to different paid, owned and earned media techniques for these channels.
Ask students about digital platforms that can be used to achieve audience interactions with each
of the six channels.
Zalando, Mini Case Study 1.2 helps bring to life how a successful application of a digital marketing
strategy can be used to drive the growth of a new business to the world business. This case also
emphasises the importance of planning and the opportunities afforded by trading in global digital
markets.
Key concepts covered are:
1. Inbound marketing
2. Permission marketing
3. Content marketing (Figure 1.12 from main book)
4. Customer engagement
5. Always-on lifecycle marketing (Figure 2.1 from main book)
6. Marketing technology (Martech) (Figure 1.13 from main book)
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Groups of students can be asked to consider these and explain the main features and practical
value of each concept.
Activities
Activity 1.1: Why are C2C interactions important?
Purpose
To highlight the relevance of C2C transactions to B2C companies.
Activity
Consult with fellow students and share experiences of C2C interactions online. Think of C2C on
both independent sites and organisational sites. How can C2C communications assist these
organisations?
Suggested answer
Social networks are the obvious sites for C2C interactions. Includes Posting, Replying and
Sharing.
You can also ask students to consider types of sectors.
For other types of site or business, the comments are less core to the business. For example:
• Retail – product reviews or reviews of a service (e.g. Trustpilot)
• Travel – holiday reviews
• Telecoms – customer support forums for solving problems with smartphones and broadband.
Activity 1.2: Integrating online and offline communications
Purpose
To highlight differences in marketing communications introduced through the use of the

internet as a channel and the need to integrate these communications with existing channels.
Activity
List communications between a PC vendor and a home customer over the lifetime of a product
such as a PC. Include communications using both the internet and traditional media. Refer to
channel-switching alternatives in the buying decision in Figure 1.10 to develop your answer.
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Suggested answer
Examples of interactions related to the figure include:
1. A phone number on a website offering a customer to call a tracked phone number.
2. An ad in a magazine or on TV with a call-to-action or discount code to be used on the website.
3. An option to pay offline, e.g. by phone or in store.
4. Offline delivery.
5. Online delivery of software as part of package, e.g. Music or Office software.
Hybrid online/offline options with an operator also exist such as Web chat.
Activity 1.3: Understanding adoption of digital devices and platforms
Purpose
To reflect on the questions marketers should ask about consumer device and platform adoption
and to share relevant sources to access this insight.
Context
You work in the innovation team for a cosmetic brand such as L’Oréal and are considering
opportunities to add more interactive virtual and augmented reality (VR and AR) features to
marketing communications aimed at increasing brand engagement and brand loyalty.
Activity
Identify the types of questions about device usage, media consumption and platform usage you
would need to ask to gain insight on adoption within different age groups. Complete searches or
access databases to identify useful sources for these types of questions.
Here are some examples of questions that you would seek to understand for different
demographics such as age group, gender and income.
Device usage:
• How many devices?
• Adoption of device browsers or apps that support AR and VR. For example, for Apple or
Android?
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Media consumption:
• When are different types of media (and devices) used through the day?
• How popular are different mobile and desktop platforms for VR and AR?
• How common is multiscreening (where more than one device is used simultaneously)?
Platform usage:
• How popular are different social networks? Do they have support for interactivity?
• How many searches and what types of searches happen on Google?
• How does media spend compare between traditional and digital platforms?
Lecturer’s Guidance
Questions students could research are provided in the book in this case.
Recommended resources: see www.davechaffey.com/book-support/, digital marketing statistics

sources section. Specific insights sources that are recommended are:
• ComScore
• DataReportal.com
• Ofcom UK Market Communications Reports
Activity 1.4: The latest marketing technology landscape
Purpose
To illustrate the range of systems available to support marketers and to explain the main
categories of service available. We look at different forms of martech to support marketing
throughout the book and there is a dedicated section in Chapter 3.
Questions
1. Search for Scott Brinker’s latest marketing technology ‘Supergraphic’ similar to that from
Brinker (2020) for the current year on his chiefmartec.com site. For each of the six categories of
service he identifies summarised in Figure 1.13, write a simple description of how they can
support digital marketing activities by reviewing the proposition as described on the websites of
the most popular services in the category (the most popular are listed first).
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Martech category Explanation Key technologies

Marketing experiences Provide website content and Content management
selection of services systems (CMS) and
personalisation
Commerce management
Marketing Operations Facilitate automation and Marketing Automation
analysis Analytics e.g. Google
Analytics
Marketing Middleware Connecting different marketing Application Programming
services to exchange data Interfaces (APIs) e.g.
Google Tag Manager
Marketing Backbones Provide core services (overlaps Content management
with the first two) systems (CMS)
Marketing Automation
Infrastructure Database storage for data MySQL (used for

including both audience insight Wordpress sites) or
and operational data enterprise Oracle and IBM
databases
Internet Networking technology to Secure HTTP, TCP/IP
connect systems to internet
2. Make a note to understand the different types of service defined in each category.
See table above.
3. Choose one or two vendor systems and visit their websites to see how they explain the
proposition and explain it to others in your group(s). Alternatively, identify the most popular
service(s) in each category.
Useful vendors for students to engage with, which are used by many smaller businesses and
agencies are:
• Wordpress CMS
• Mailchimp and HubSpot Marketing Automation
• Google Analytics and Google Tag Manager
Case study 1 Boo.com
1. Discuss which strategic marketing assumptions and decisions led to Boo.com’s

inevitable failure.
Boo.com lacked the expertise, resources and capabilities to make a successful launch in 18
countries simultaneously. The founders had created a successful online book business in
Scandinavia, but Boo.com was a much more complex operation.
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Additionally, the underlying technology infrastructures were not in place and the ‘aspirations’ of
the management team for the functionality of the website were way beyond the ‘know-how’ of
developers at the time.
2. Compare and contrast the marketing strategy of Boo.com with Boohoo.com and
suggest what made the difference between success and failure.
Ultimately, Boo.com did not have a coherent strategy and so rather than building a scalable
business that could grow over time they aimed to build a global business overnight. The company
benefited from the high demand for high-tech stocks, which allowed money to constantly be
pumped into the business. However, once the company demonstrated its inability to deliver, the
launch date for the website was constantly put back. The failure to deliver on time linked with
the stock market crash contributed to the fact that it was almost inevitable that the business would
fold.
In contrast, other businesses were making more scalable and sustainable plans. Companies like
Tesco.com and new pure plays like Last minute.com are examples of businesses that looked at
the potential in the marketplace and developed both sustainable and scalable solutions.
3. Use the framework of the marketing mix to appraise the marketing tactics of Boo.com
in the areas of product, pricing, place, promotion, process, people and physical evidence.
4. Ps – Product, Pricing, Place and Promotion
Boo.com wanted to offer a product range of branded goods to the 18- to 24-year-olds who were
both fashion conscious and had good incomes. In essence, this approach was OK if the size of
this target group at the time of launch was not as extensive as predicted and there were still many
barriers to shopping online both for this group and other potential targets. This made a heavy
demand on the promotional budget as Boo had to launch a new shopping concept; establish
credibility for the brand and reinforce to the target audience that it was ‘OK’ to shop online. Boo
failed on the logistic side, and there were many problems associated with logistics throughout the
supply chain. Goods were delivered late and returns were mishandled.
The extended service mix
Shopping with Boo was a laborious process. Physical evidence: the user interface had many
graphical features, which meant slow download speeds, and it was not seen to be user-friendly.
When it is working, the online environment created by Boo was sophisticated and offered many
of the interactive features that shoppers were looking for; however, this was not the case for much
of the time. Furthermore, many shoppers did not have broadband and as a consequence could not
enjoy any of the benefits. Process: the shopping process did not work in a streamlined way and
there were many angry customers. People: the website used JavaScript and Flash technology to
allow Miss Boo, a sales-assistant-style avatar, to assist shoppers, but this did not work very well
especially when using a 56k modem and dial-up connection.
More specifically, the marketing mix is covered in Chapter 5, so this part of the question should
only be set if this concept has been covered previously.
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Details of the marketing mix that relate to Boo.com are as follows:
• Product. Premium brands were used, leading to premium prices. Unclear on mix between
sportswear and high street fashion. Scope relatively narrow, limiting target audience.
• Price. As mentioned in the case, there were issues of pricing in different regions. No
mentions of discounting are made, consistent with the brands’ premium positioning.
However, competitive selective promotions are today commonly used by many e-retail
brands.
• Place. Boo.com had a worldwide distribution, which was good for achieving reach, but added
to the cost-base of the company, impacting on promotion. A global launch of a new brand
was ambitious and can be contrasted with the more conservative approach from the likes of
Amazon and eBay.
• Promotion. To build the Boo brand and drive visitors, it was reliant on online advertising,
which gave rise to a high cost per customer acquisition that ultimately led to the brands
failure. The use of PR was more effective and is one of the successes of Boo. The magazine
appears overambitious and did not pay for itself through sales generated. At the time, the
promotion through online marketing techniques such as search engine advertising and
affiliate marketing techniques was limited in its possibilities. Today, these are more effective
for companies.
• Process. People and physical evidence. It is well known that the technology was too
advanced for a time when the vast majority was accessing the web over dial-up modems.
This led to a ‘clunky’ experience that resulted in the low conversion rates referred to in the
article. It also seems likely that the cost of providing customer service was not factored into
the business model.
5. In many ways the vision of Boo’s founders was ideas before their time. Give examples
of the e-retail techniques used to create an engaging online customer experience which
Boo adopted and is now becoming commonplace.
When boo.com collapsed, the company left a legacy of the underlying e-commerce
technology. This was bought for £250,000 by Dan Wagner, which enabled him through his
company Bright Station to create an e-commerce solution package, which runs many of
today’s successful online retailers’ web operations. The 3D images of products, sales
assistant avatars and multiple country online stores are examples of some of the features of
Boo.com operations that have now become commonplace, for example, IKEA for online
sales support through their ‘Ask Anna’ facility.
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Exercises
Self-assessment exercises
1. Explain digital marketing.
Digital marketing can be defined as ‘achieving marketing objectives through applying digital
media, data and technology.’
In practice, digital marketing focuses on managing different forms or online company presence
such as a company website, mobile apps (for larger organisations) and social media pages,
integrated with online communication techniques. These techniques include search engine
marketing, social media, online advertising, email marketing and partnership relationships. These
tools and techniques are used to achieve marketing goals, for e.g. raising awareness, acquiring
new customers, developing existing relationships and so on.
2. Explain the importance of integrating digital and traditional communications channels

through the customer lifecycle.
Integrating digital and traditional communications channels through the customer lifecycle
creates opportunities to connect with different types of customer behaviour and stages in the
buying process. Repeated communications such as retargeting are more likely to make an impact
compared to a single touchpoint.
The demographic profile of an online audience varies significantly and not all customers are
committed users of digital channels. As a result, website content should be tailored to suit the
interest of the target community. Appropriate social media should be used to engage a particular
audience, for example, Facebook and Twitter attract a different demographic to Instagram or
Snapchat. Online content can be used to provide information and reach; can encourage audiences
to engage with a brand; can be used to convert leads into sales and revenue and can also be used
to build customer relationships.
Traditional communications can be used to draw customers towards online channels.
Figure 2.1 at the start of the next chapter gives a visual response to this question.
3. Outline different applications of digital marketing which can help meet business
goals.
Students should consider the different forms of online presence and how these support digital
marketing.
Within each there are different applications to support online and offline marketing.
1. Transactional e-commerce site (online sales, click and collect or offline store finder).
2. Services-oriented relationship-building website (Help desk and FAQ), lead generation

through data capture.
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3. Brand-building site – can include sampling, capture of leads or creation of community

and sharing.
4. Portal or media site – publishing through news, blog and social networks.
5. Social network or community site – encouraging sharing through creation of consumer-

generated content.
As noted in the text, these are not mutually exclusive; it is a matter of emphasis.
4. Explain what is meant by electronic commerce, social commerce and digital

business. How do they relate to the marketing function?
E-commerce refers to transactions for the trading of goods and services conducted using the
internet and other digital media. Digital business is broader, including electronically
mediated transactions, which are internal and with suppliers as well as those to buyers. They
are both methods of supporting the marketing function – e-commerce refers to customer-
facing websites; digital business also includes links with partners and suppliers through
extranets and internal marketing communications through intranets.
Social commerce can support both e-commerce and digital business. It refers to supporting
sales through encouraging consumer sharing, interaction and advocacy. It is integrated into
e-commerce as reviews and ratings, for example.
5. Six digital media channels are introduced in this chapter. What are they and how do
they work to reach, engage and convert an audience?
The six media channels can be distinguished by terms mentioned later in the text, that is, pull or
push or inbound marketing. They are as follows:
1. Search Engine Optimisation ((SEO) and Paid search marketing (PPC) including
Google Shopping). These are ‘pull’ media which are a response to consumer demand
through search engines and search networks (ads are displayed on third-party sites also).
2. Online PR. This includes outreach to publishers and bloggers.
3. Online partnerships. For e-commerce sites, affiliate marketing is the main arrangement, a
commission-based approach to sales.
4. Digital advertising. Display ads use a ‘push’ approach similar to traditional ads,
reaching audiences as they use media sites.
5. Opt-in email. Tends to be mainly used with in-house customer lists, but can advertise
in publishers’ permission- based lists or e-newsletters.
6. Social media marketing. Reaching audiences through organic and paid communications as
they use the main social networks and encouraging sharing of content.
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6. Summarise the main communications differences between digital and traditional

media.
• Interactivity and inbound marketing – not solely a push medium (email), but also
pull (customers search for information). Information can be collected from customers
via web pages (direct response).
• Intelligence – can monitor customers’ interests and profile them.
• Individualisation – it is possible to tailor email and web communications (personalisation).
• Integration – of online and offline channels remains important.
• Intermediation – new intermediaries can be used as a route to market and there is also
the opportunity to sell direct.
• Independence of location – possible to reach a wider marketplace.
Also explained by concepts covered in the next question.
7. Distinguish between social media marketing, inbound and content marketing.
1. Social media marketing. Encourages interactivity, participation and sharing by

individuals who create user generated content.
2. Inbound marketing. Raises awareness through content to engage which is then shared.
3. Content marketing. Engaging content is developed for sharing as part of social media
and inbound marketing often from a content hub. Content is developed not just for
sharing, but to support sales.
8. How can digital marketing be used to develop new markets and penetrate existing
markets? What types of new products can be delivered by the internet?
International markets can be targeted without the need for sales/promotional infrastructure.
Fulfilment methods must enable delivery with minimal need for local servicing. The internet
may give opportunities for new market segments such as the youth market that may have
been difficult to target previously. For existing markets, the internet can be used to increase
awareness and add value to a company and its products.
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Exam and discussion questions
1. Some would see digital media primarily as a means of advertising and selling
products. What are the opportunities for digital marketing?
Non-promotional opportunities or benefits include:
• Marketing research
• ‘Below-the-line promotions’
• Customer service and relationship building/loyalty enhancing.
• Brand enhancement through digital interaction and social proof from user generated
content.
• Advocacy through social media amplification.
The 5Ss given are also a suitable framework for answering this question.
2. Digital marketing and inbound marketing represents a pull medium for marketing
rather than a push medium. Discuss.
This can be answered considering how some digital channels like search and social media
are mainly based on consumer pull. However, other media such as digital advertising and
email marketing are similar to traditional push media.
3. You are a newly installed marketing manager in a company selling products in the
business-to-business sector. Currently, the company only has a limited website
containing electronic versions of its brochures. You want to convince the directors
of the benefits to the company of investing in the website. How would you present
your case?
This is best answered by explaining a logical process for making the business case.
• Understand changes in media consumption – how do their prospective (?) and customers
use the web to inform their buying decision?
• Set objectives in terms of number of site visitors and leads generated.
• Formulate a strategy to develop relevant content, that is, more depth than electronic
brochures, to help customers decide on relevant products or complete their jobs.
• Develop a plan to promote the site, including details of tactics for each digital media
channel and lead nurture in combination with the sales team.
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The directors will be interested mainly in generating new enquiries and increasing
conversion of these leads to sales. Students may mention the following benefits:
• Reach new audiences, for example, smaller businesses through pull effect of search
engines.
• Provide a new method of generating leads through offering white papers or other gated
content.
• Provide customer services to existing customers and promote alternative products

(cross-sell).
4. Explain the main benefits that a company selling fast-moving consumer goods
should gain from its website and integrated digital campaigns.
The aim of this question is to stress that the web is not suitable for direct sales of all products.
However, digital media may be used for generating awareness and brand building. This can
be achieved through display advertising on third-party publisher sites. Audiences with an
affinity with a brand may visit a website or social media to interact with the brand.
This engagement can occur through microsites hosted by publishers or by the brand and
social networks. Consumers can be encouraged to opt-into e-newsletters or get involved in
SMS promotions. Students should learn the concepts of inbound and content marketing to
show how relationships with consumers can be developed. Good examples to recommend
are Bacardi, Lynx and Red Bull.
5. Which digital marketing techniques can be used to increase awareness of a brand

and encourage interaction with the brand?
Digital media offers a range of platforms to increase awareness as web users search and
consume content online. Techniques include search engine marketing, online PR and
outreach and partner marketing. Display advertising and reaching publisher audiences
through email lists can also be used to increase awareness. Amplification can be achieved
through videos and social media if content is sufficiently engaging. Interaction is usually
facilitated using a model where visitors are referred to a site, microsite or social network
where content marketing is used to encourage interaction. These methods can be used across
both desktop and mobile platforms.
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CHAPTER 2
Online marketplace analysis: micro-environment

Explores how to complete a situation analysis for the main elements in the micro-environment
influence to support digital marketing strategy and planning.
Notes on using slides for the second chapter in lectures – lesson plan
1. Online Market place analysis: The micro-environment. Slides 2.2 and 2.3 show an
overview of learning objectives and topics covered in this chapter.
The purpose of this chapter is to identify the elements in an organisation’s environment,

which has implications for digital marketing planning. To explore how to review the
importance of different players in the micro-environment: customers, competitors,
publishers, intermediaries, suppliers and competitors. To consider business and revenue
models enabled by digital markets. By the end of the chapter, students should have a greater
understanding of the importance of the micro-environment and how it might influence digital
marketing strategy development.
2. Reviewing the complex lifecycle interactions. Slide 2.4 presents Figure 2.1 as the new
customer lifecycle marketing touchpoint summary for a retailer. This visual
representation of the customer journey highlights the stages in the complex journey and
links each of the stages to the RACE framework. The model shows the application of
different media and experiences in a typical retail customer journey. Key point is
to highlight how companies need to assess potential online media and distribution
partners. For further discussion see “Customer journeys and the online marketplace,
pages 46–47.” The customer lifecycle summary map also shows the complexities of the
digital trading environment.
3. Situation Analysis for digital marketing. Slide 2.6 and Figure 2.2 shows the digital
marketing environment map. Each of the elements in the figure can help students understand
the relationship between the macro and the micro-environment and the elements which make
up these two areas. This is an important foundation for the learning in the remainder of the
chapter.
4. Tools for insight to support situation analysis. Slides 2.7 and 2.8 and Table 2.1 accompany
Digital marketing insights 2.1. See below for further details.
5. Understanding customer in digital markets. Slide 2.9 introduces the different types of
customers, which might be considered as part of the marketplace analysis. It is important to
remind students that while often consumers are the main focus of discussions there are other
types of customers and destinations online which form the online marketplace. Customer
journey mapping: It is important to explore the connections between physical and digital
marketplaces. Slide 2.10 (Figure 2.3) shows an example of a customer journey revealing
digital and physical touchpoints. Customer journeys vary depending on the profiles of
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individuals in selected target markets. Key point: the focus has moved away from online
marketplace analysis towards the customer. Analysis of customers online, the content they
engage with, the channels they use is central to creating successful digital marketing
campaigns. Online customer behaviour is highly trackable so it is important to understand
the stages in the conversion process in relation to different channels. See pages 52–64 for
further discussion.
6. The latest insights on digital marketing adoption? Slide 2.12 links to the latest insight on
each chapter and a downloadable presentation.
7. The importance of search. Slide 2.13 and Figure 2.5 slide to accompany Digital marketing
insights 2.2. See section below for further details.
8. Modelling sales from multichannel customer journeys. Slide 2.14 and Figure 2.6 shows
conversion model between the digital channel and traditional channel during the buying
process. Conversion modelling (advanced) and can be used to explain the need to assess
demand for use of different services and then to create a conversion funnel model.
9. Customer Choice and digital influence. Slide 2.15 introduces the key topics, covered in the
next part of the chapter in relation to consumer choice, targeting and the buying process.
10. Evolution of consumer behavior. Slide 2.16 and Figure 2.7 show the stages in the
development of experiences in internet use. Interesting to consider how the type of decision
links to the internet media.
11. How do these drivers compare to drivers of online purchases? Slide 2.17 and Figure 2.8
show the influences on online purchasing behavior in the UK. Use this to start a discussion
of the relative importance of different influences and question whether these influences apply
to all types of products equally.
12. What do we need to understand about B2B audiences through insight we collect? Slide
2.18 provides a list of variables for identifying B2B target segments and also highlights the
importance of considering the role of the individual within the firm’s buying center.
13. And B2C audiences? Slide 2.20 focuses on demographic and psychographic variables for
using in targeted marketing campaigns.
14. Mini case study 2.3 See the next section for details.
15. Drivers of digital experiences. Slide 2.22 and Figure 2.9. This figure is a framework for
understanding concepts which motivate online consumers. It also highlights the importance
of considering past experiences and how these can shape future behaviour. Encourage
students to identify a good and a bad previous shopping experience and then to consider how
this shaped their future behaviour.
16. Personas Slide 2.23 and Figure 2.10 provides powerful insights into the practical uses of
structured persona profiles. Give students a particular context such as online grocery retailer
and then encourage them to create examples of the thumbnail descriptions which might form
the basis of personas for a seasonal digital marketing campaign.
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17. A linear online purchase model. How closely does this mirror reality? Slide 2.24 and Figure
2.11. This figure is a summary of how digital channels are used to support various stages in
the buying process. The model raises questions around how to effectively link the stages in
the buying process with the tools, techniques and channels being used to engage the customer
through the purchasing process. This is a useful model to stimulate discussion as students
have their own experiences of responding to the buying mode.
18. The complexity of today’s customer journeys. Slide 2.25 and Figure 2.12 show an example
of a customer purchasing journey for headphones. It is important to show this complexity as
this offers both opportunities and challenges for digital marketers.
19. Competitors. Slides 2.26 to 2.28 introduces competitors, and benchmarking techniques and
tools. Encourage students to consider how the RACE framework can be used to review
competitor activities. Also, how to use the techniques and tools in Table 2.3 to identify
competitor actions and online success. In class, the discussion to accompany these slides
should seek to cover the nature and shape of competitive markets. For further discussion, see
the section “Competitor analysis” on pages 70–76. Discuss Porter’s five forces in the digital
context and competitor analysis and benchmarking.
20. Publishers. Slide 2.29. Discuss the different types of online publishers in relation to target
audiences and consider the different types of content required for paid, owned and earned
media.
21. Suppliers. Slides 2.30 highlights suppliers and intermediaries. Ask students to identify
different types of suppliers, intermediaries or portals. Different types of intermediaries were
introduced earlier in the chapter in the section on marketplace analysis (see Figure 2.4).
22. New channel structures. Slides 2.31 and Figure 2.14 shows the concept of disintermediation,
reintermediation and countermediation in relation to channel structures. Intermediary models.
Cover value chain analysis, disintermediation, reintermediation and countermediation. Discuss
the implications of cutting out or adding intermediaries into a channel structure.
A tool for summarizing business models. Slide 2.33 and Figure 2.16 focuses on the
importance of having a clear business model in the digital world. When moving part or all of
a business’s operations online, it is important to refine existing models and to incorporate
new opportunities. The business model canvas is a very useful framework to use to carry out
this evaluation. The points to highlight from the canvas are:
• Value proposition
• Customer segments
• Customer relationships
• Channels
• Key partners
• Key activities
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• Resources
• Cost structure
• Revenue streams
Figure 2.17 on page 83 in the text shows a revenue model spreadsheet.
Mini case studies
Mini case study 2.1: How social media influencers can shape our opinions: from meat
eater to vegan
This mini case explores the extent to which influencers can disrupt markets. Using examples,
the case considers Naked Glory a meat free product brand and how it raised awareness using
15 creative influencers, Instagram and Facebook to shape consumers behavioral intentions.
Key point: a creative and carefully planned influencer campaign to achieve extensive reach
and exceed campaign objectives.
Mini case study 2.2: Supporting cross-channel customer behavior
This case explores creating successful cross-channel experiences and highlights the
importance of understanding customer touchpoints. Examples from Epiphany, a digital
search-based agency, shows connections between using mobile phones and visits to physical
stores. Time of day and website speed are also found to influence customer experiences. Key
point: it is important to go beyond looking at the channel itself to understand customer use
and customer journeys.
Mini case study 2.3: L’Oréal using video advertising on Facebook and Instagram to
micro-target.
This mini case explores how L’Oréal’s specialist skin care brand La Roche-Posay targets
potential customers using highly targeted personalised ads. Key point: It should become
possible to develop a persona using different variables enabling digital markets to develop
campaigns which empathize the needs, wants and interests of the target audience. The mini
case also highlights how this highly personalised approach to advertising increases the
opportunity to develop finely targeted marketing campaigns to engage very specialised target
customers.
Mini case study 2.4: Personas ‘with wings’
This case explores AMP, a marketing agency and their work with clients using personas to
create targeted marketing campaigns. The case provides an example of a persona for Red
Bull and how this might be used creatively in communication messages. Key point: brands
need to be aware of how they can differentiate themselves online and personas are a useful tool
to help to conceptualise individuals in a given target market.
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Activities
These activities are designed to encourage students to engage with the materials in the
chapter but also to explore beyond the book as desk research.
Activity 2.1: Using digital research tools to assess variation in device usage
Purpose
To explore the value of digital research tools in assessing variation in consumer preference
for online purchase.
Activity
Using the resources listed in Table 2.1:
1. Create a table with a column for each of the FAMGA companies and a row for each of
the 7Ds of digital marketing we introduced in Chapter 1, that is, digital goals, digital
audiences, digital devices, digital platforms, digital media, digital data and digital
technology.
2. Student groups can fill in examples of specific devices, platforms, data and technology
(for example, Facebook has its PortalTM device, Facebook, Instagram, WhatsApp and
Messenger social platforms, advertising media, API and Insights data and technology).
3. Identify recent examples of how innovations from these businesses have given marketers
new options for interacting with consumers (for example, mobile, messaging, social or
device developments).
Activity 2.2: LinkedIn: making professional connections
Purpose
To consider the insight about B2B decision makers available in online business networks
such as LinkedIn.
Activity
Businesses rely on their connections to other businesses and key individuals to develop their
businesses. In 2002, Reid Hoffman had an idea, which he turned into the largest professional
network in the world: LinkedIn. Today, there are over 500 million professional individuals
signed up to the network in 200 countries worldwide and in 24 languages.
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Use the free facilities available via the search function to gain insights about decision-makers in
a business. Choose three brands you are familiar with and now answer these questions:
1. Find three examples of businesses that are using LinkedIn to access their target markets by
visiting their business pages and reviewing the types of content they are publishing to appeal
to different target audiences.
2. Use the LinkedIn Search function to find employees in a marketing role. Assess how many
people have dedicated digital marketing channel roles.
3. Use the LinkedIn Campaign Manager or supporting documentation to determine the B2B
audience attributes that can be used for targeting and insights (available if you have an
account).
Digital Marketing Insights 2.1 Resources for analysing the online marketplace
This DMI provides resources, which students can visit, explore and use for marketplace analysis
/tasks. This should enable greater understanding of the resources that are available for developing
an informed picture of customer behavior, which is especially important for strategic and tactical
planning of digital campaigns. Table 2.1 provides details of digital information services web links
and a brief introduction to the type and range of services offered from each of these providers.
This DMI has scope to be used as part of a desk research exercise, encouraging students to
discover the information types and to consider how this might be used to assist with the planning
of digital campaigns. Use in conjunction with Activity 2.1.
Digital Marketing Insights 2.2
From share of search to share of searches – evaluating search marketing effectiveness
This DMI highlights how share of search and search marketing can be evaluated. Share of search
is a powerful measure of competitiveness. Binet (2020) proposes that share of search is a high-
level benchmarking technique. Key learning point for marketers is that in order to review a
brand’s performance over time looking at search performance and search terms can provide useful
insights.
Case Study 2: Creating the beauty that moves the world
Questions and answers:
1. Discuss how digital tools and technology are driving the development of the L’Oréal
Group.
L’Oréal has transformed the business using a digital first transformation strategy. The integrated
approach to the deployment of digital technologies, tools and techniques has been utilised in each
of the groups’ divisions to provide end-to-end digital solutions.
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The transformation began in 2015 with L’Oréal’s development of its e-commerce channel. This
has grown to account for 12 per cent of the business in 5 years. As well as e-commerce, the
company has been deploying cutting edge technologies to help develop competitive advantage.
Highly efficient data management systems ensure the flow of information across the company,
through the divisions and around the globe. Artificial intelligence is being used to optimise
customer experiences and to ensure the best market intelligence is extracted from the company’s
data sources.
Digital marketing and social media platforms are also very important, and these have been used
very effectively to extend the reach of each of the divisions online. Using social media, YouTube
and other popular digital channels around the globe L’Oréal has significantly grown brand
awareness, developed customer engagement and retained its customers.
New product development has also benefited from the deployment of technology and radical
innovations are being introduced like digital makeup, which allows users to wear virtual make up
on social media channels. The company has become very switched onto digital and is leading the
way in many areas of the cosmetics industry.
2. Mass personalisation has the potential to add value for customers. Explain how each
of L’Oréal’s divisions benefit from this focus on the individual customer.
L’Oréal divisions and brands
The following are just a few examples of the different approaches showing how L’Oréal
demonstrates the power of digital and how it is used to enable the digital transformation to
continue to gain momentum through each division with a specific focus on connecting with
the individual.
Consumer Products division
This division has concentrated on bringing customers closer to its brands through technology by
finding ways to increase consumer engagement through social media. By listening to individuals
and reaching out to their friends with their communication campaigns and promotions, L’Oréal
has been able to build a large customer-base of which they have very individualised knowledge.
Customers are also invited to engage through social media and online polls providing the
company with even more information on customer preference.
Professional Products division
This division has focused on reinventing the professional trade through encouraging hairdressers
to become influencers, specialist training and focus on consumer experiences. The professional
salon teams are also given training support and digital intelligence to enable them to be better
informed to meet the needs of better-informed customers. Each salon is encouraged to develop
its digital expertise and the company engages salon owners through training and education. Social
media has been used to give individual businesses the opportunity to share their stories, which
are then used to inspire others.
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Active Cosmetics
This division uses social media to build close relationships with its customers. In this division,
technical product knowledge is increasingly important and by giving consumers access to more
information on skin and hair care; individuals can make better product choices and to enjoy the
benefits of improved buying decision-making. For example, using AR and dermatological
expertise, Vichy’s Skin-Consult application detects signs of ageing so they can adapt better skin
treatments. The My Skin Track UV sensor and its accompanying mobile application can also
measure exposure to pollution, pollen and other climatic conditions giving customers the very
best opportunities to maintain and protect their skin.
L’Oréal Luxe
This division has benefited from clear focus and deployment of digital technologies, and
international trade. L’Oréal Luxe is the leading cosmetic brand around the globe. There are 26
brands in this portfolio and relationships with customers are tailor made through online and
offline channels to ensure customers have experiences which make a difference and make each
customer feel like an individual.
3. Consider the extent to which the macro- and micro-environment influences have
shaped L’Oréal’s Digital First strategy.
For this answer, select each of the most relevant areas of the macro/micro-environment and
explore the likely impact on the company’s strategy.
For each of the selected elements of the situation analysis, ensure that it is clear what the influence
is on the L’Oréal strategy and if possible identify evidence in the case study to support the answer.
4. Choose one of the L’Oréal’s divisions and find out more about how it is currently
utilising digital technologies and tools to meet the company’s corporate goals.
The L’Oréal corporate website at https://www.loreal.com/en/our-global-brands-portfolio/ is a

very good resource for providing up-to-date information on how each of the divisions are utilising
technology. There are commentaries, interviews, and detailed information on product ranges.
At https://www.loreal.com/en/beauty-science-and-technology/beauty-tech/digital-transformation/
there is information about the digital transformation strategy and how this is ‘reinventing the future
of beauty’ (L’Oréal, 2021). These are good sources of information to answer this question.
1. Explain the components of the digital market environment.
The e-marketing environment consists of a multi-layered trading arena which is made up of (a)
macro-environment – external forces, for example, political, legal, environmental, technological
and social influences, which affect a company but are largely beyond influence, and (b) micro-
environment, which is predominantly made up of factors that can influence and be influenced by
a company, for example, customers, competitors, suppliers and intermediaries.
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2. Suggest reasons why is environmental scanning necessary.
At the macro level, it is important to understand new constraints such as legal and technical
constraints on conducting business. These may also present opportunities. At the micro level, it
is important to be responsive to customers’ needs and competitors’ actions.
3. Summarise how each of the micro-environment factors may directly drive the content
and services provided by a website.
At the micro-environmental level, suppliers, competitors, intermediaries and customers have

influence over the content and services offered through the web. In the first instance, it is
important to ensure that customer needs are met by the website. Companies should seek to
understand their customers, their abilities (and motivations) for using the web and their needs.
Competitors also influence the design and functions of a website. In a particular industry sector,
companies tend to try to match the web offering of their competitors in order to remain
competitive. Intermediaries, especially web solution service providers, have significant influence
over the design, development and operational functionality of a website. Good relationships are
important between the client and the intermediary. Suppliers (depending on the nature of the
operation) need to align with their customer’s technology. Either the supplier of the customer
may have outdated technology which can hamper trading relations. This has been greatly
improved with e-procurement systems via the web.
4. Explain how you would analyse demand for digital marketing services.
Environmental scanning and customer analysis (see sections from pages 50 to 60) is discussed in
some detail in this chapter. The key elements to understand are customer behavior, insight and
segments using sources of data designed to analyse the online marketplace.
Customer behavior analysis can be considered from two perspectives: (1) demand and gap
analysis, which involves considering volumes of visitors and the extent to which each prospect
converts to tactical and strategic outcomes; (2) digital consumer behavior, analysing the needs and
wants of the customer and their online behavior.
5. Discuss the players in the micro-environment and suggest how their roles are changing.
The micro-environment is known as the operating environment and focuses on the players that
shape the immediate trading environment. These players include the customers whose needs and
wants are to be satisfied, along with the competitors, intermediaries, and suppliers. These groups
of players shape the online marketplace, and a digital marketer needs to understand their
behaviour and interpret this correctly to build and adapt an efficient and effective digital
marketing strategy.
As demand for digital services, online shopping and the digital economy has grown so has the
complexity of the roles each of the different types of players adopt. For the customers, the
purchase journey has become integrated between on and offline touchpoints. This means that
suppliers and intermediaries need to understand and be able to interact with the customer through
a multitude of touchpoints.
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Measurement and analytics have become more sophisticated and require close and careful
analysis to understand the market potential of any given trading arena.
6. What are the main aspects of customer adoption of digital marketing that managers
should be aware of?
Customer choice, experience and influence. Figure 2.11, page 68 maps out how digital media can
impact on the buying process of a new purchaser. Managers should be aware of all of the elements
of this model and consider the implications of each stage. To assess customer adoption of the
internet and digital media, managers should consider:
• Where the customer is in the buying process
• The communication objectives in the digital marketing plan and the implications of
these for customer adoption
• The implications of specific tactical digital marketing techniques.
7. What are the main changes to channel structures that are facilitated through
the internet?
• Direct selling – disintermediation
• New intermediaries – reintermediation
• Countering new intermediaries – countermediation
8. How should a marketing manager benchmark the online performance of competitors?
You should have identified the need to distinguish between benchmarking criteria that define the
company’s marketing performance in the industry and those that are specific to web marketing.
Then consider structured elements within an organisation market, which have implications in
competing marketing, for example:
• Internal capabilities, such as resourcing, structure and processes
• Customer lifecycle: acquisition, conversion retention
• Financial performance. Available from About Us, Investor relations and electronic copies
of company reports. This information is also available from intermediary sites such as finance
information or share dealing sites such as Bloomberg (www.bloomberg.com) for major
quoted companies.
• Marketplace performance. Market share and sales trends and significantly the proportion
of sales achieved through the internet. This may not be available directly on the website
but may need to use other online sources. For example, a new entrant to European
aviation.
28
• Business and revenue models. Do these differ from other marketplace players?
• Marketing communication techniques. Is the customer value proposition of the site clear?
Does the site support all stages of the buying decision from customers who are unfamiliar
with the company through to existing customers? Are special promotions used on a monthly
or periodic basis? Beyond the competitors’ sites, how do they make use of intermediary sites
to promote and deliver their services?
• Services offered. What is offered beyond brochureware? Is online purchase possible? What
is the level of online customer support and how much technical information is available?
• Implementation of services. These are the practical features of site design that are described
in Chapter 7, such as aesthetics, ease of use, personalisation, navigation and speed.
1. Imagine you are about to set up a business online. Set out a plan for investigating
the micro-environment as part of the situation analysis.
To plan for a business start-up, it is critical to understand the marketing landscape. For the
question, the requirement is to examine the micro-environment. In the micro-environment, the
key elements are the factors which shape the immediate internal environment of a business, which
includes customer, competitors, intermediaries and suppliers. So, for the analysis each of these
groups should be explored in some detail as well as developing an understanding of the resources
and core competencies of the business.
Customers should be understood for example in terms of their needs and wants, expectations of
levels of service, and their personal demographics (or business profiles) and personas.
Competitors should be analysed to establish the shape and nature of the competition. This can be
achieved by applying the five forces model, competitor analysis and using benchmarking
techniques.
Suppliers and intermediaries should be considered in relation to the services and products
offered, pricing strategies, delivery options, expertise, technology management. Answer to this
part of the question could provide examples and contexts for the answer.
2. Evaluate the usefulness of research tools for assessing digital markets. Suggest the
limitations of two search tools of your choice.
Focus on the contents of DMI 2.1 pages 50 to 51 to determine the range and type of research
tools available to a digital marketer then identify two specific search tools. The question
requires discussion of the limitations of search tools, which may include cost; target market
of the data source; currency; lack of depth and detail; bias; long periods between frequency
of updates.
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Examples to choose from for the two search tools:
Two of the largest platforms, which provide the

best sources of free, accurate tools for
marketplace analysis. Recommended Google
tools are:
• Display planner tool – this Google Ads tool
shows relative size and audience composition
of publishers in the Google programme.
• Google Trends – trends in search volume by
1. Google and Facebook tools See country – no sign-in required.
www.thinkwithgoogle. • Keyword Planner – this tool requiring
com/tools/ and Facebook. registration in Google Ads gives details on the
com/iq number of searches each month.
• Find My Audience – this YouTube tool defines
in-market and affinity audiences.
The recommended tool in Facebook IQ is now
only available to advertisers:
• Audience Insights – provides Facebook
audience country breakdown by gender, age,
interests and job titles, plus information on top
page likes.
Freemium tool enabling comparison of visitors to
2. SimilarWeb (www. sites and which channels prompt the visits.
similarweb.com) Sample dependent on users of the toolbar. A paid
alternative is Alexa.com.
Freemium tool with some free tools for
3. Socialbakers
benchmarking brand social media popularity, e.g.
(www.socialbakers.com)
in Facebook.
Paid-for global audience panel service with useful
4. Global WebIndex
insights on social media adoption via its blog.
(www.gwi.com)
Nielsen is another alternative.
Paid-for home-panel tool but free data on
5. Comscore consumer behaviour on mobile and desktop for
(www.comscore.com) search engines and publishers available from its
Insights section.
6. Google Analytics Free and paid-for services, which provide insights

(www.google.com/analytics) into website traffic. Includes competitor
benchmarking.
7. Internet or Interactive
Advertising Bureau (IAB) (UK: Research focusing on investment in different
www.iabuk.com, Europe: digital media channels, in particular display ads
www.iabeurope.eu; US: and search marketing. Paid-for services.
www.iab.net)
Data, analysis and insights for the retail industry.
8. Internet Media in Retail Group The IMRG Capgemini Sales Index provides
(IMRG) (www.imrg.org) benchmark statistics on UK e-retail sales, mostly
limited to members.
30
Useful government sources include Office for

National Statistics (UK, www.ons.gov.uk);
Eurostat (EU, www.ec.europa.eu/eurostat/);
9. Government sources Ofcom (UK, www.ofcom.org.uk – excellent
communications market reports); statistics.gov.uk;
and www.data.gov for the US.
Include Pew Research Center (US,
www.pewresearch.org/topic/internet-technology/
good for social media adoption) and International
10. Non-government organisations Telecoms Union (www.itu.int, a good source for
mobile adoption). www.datareportal.com,
www.statista.com and www.marketingcharts.com
are recommended for insights from other sources.
3. How does the quality of customer persona information affect the effectiveness of
marketing communications for B2C and B2B personas?
Personas are fictional profiles that represent a particular target audience. Personas are a tool,
which can help understand online customer characteristics and behaviour and then create
communications more relevant to your audience. Creating personas is a powerful technique
for developing customer-centred online strategies, company presences and campaigns, and
forms part of marketplace analysis.
Personas are essentially a ‘thumbnail’ description of a type of person. They have been used
for a long time in research for segmentation and advertising, but in recent years have also
proved effective in improving website design by companies that have applied the technique.
To be effective for digital marketing, personas should go beyond a simple summary of
audience characteristics, needs and aspirations.
Figure 2.10, page 66 presents an example of persona, which could be incorporated into the answer
for this question.
Effectiveness of marketing communications is largely controlled by the extent to which the

target audience is known and understood. The reasoning behind this is that all the elements
of a communication campaign is based on the customer. The effectiveness of the campaign
needs all of the following to appeal to the target audience:
• The imagery
• The message
• The appeals
• The media
• The channel
• The tone
• The content
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All these elements should align with the interests, beliefs, attitudes and wants of the
customer. A detailed persona can provide this information and contribute to the development
of an effective communications campaign.
The same is true in B2B context but the needs and wants of the customer are based at an
organisational not an individual level. For instance, the size and quantity of the order will
tend to be large and therefore the risk of making the wrong purchase decision higher than
with an individual. Looking at personas for B2B customers, needs to consider, attitude to
risk; innovation; management structures, and price sensitivity for example.
4. Complete a competitor benchmarking for online services for an organisation of

your choice.
Discussion should focus on the need to distinguish between benchmarking criteria that define
the company’s marketing performance in the industry and those that are specific to web
marketing, for example:
• Financial performance. Available from About Us, Investor relations and electronic
copies of company reports. This information is also available from intermediary sites
such as finance information or share dealing sites such as Interactive Trader International
(www.iii.com) or Bloomberg (www.bloomberg.com) for major quoted companies.
• Marketplace performance. Market share and sales trends and significantly the proportion
of sales achieved through the internet. This may not be available directly on the website
but you may need to use other online sources. For example, a new entrant to European
aviation, easyJet (www.easyjet.com), has achieved over two-thirds of its sales via the
website and competitors need to respond to this.
• Business and revenue models. Do these differ from other marketplace players?
• Marketing communication techniques. Is the customer value proposition of the site

clear?
Does the site support all stages of the buying decision from customers who are unfamiliar
with the company through to existing customers? Are special promotions used on a
monthly or periodic basis? Beyond the competitors’ sites, how do they make use of
intermediary sites to promote and deliver their services?
• Services offered. What is offered beyond brochureware? Is online purchase possible?

What is the level of online customer support and how much technical information is
available?
32
• Implementation of services. These are the practical features of site design that are
described in Chapter 7 such as aesthetics, ease of use, personalisation, navigation and
speed.
33
CHAPTER 3
The digital macro-environment

A review of the opportunities and constraints placed on digital marketing by the broader
environment, for example, economic, legal and political, social, technological and
environmental forces.
Notes on using slides for Chapter 3 in lectures – lesson plan
1. The Digital Macro Environment. Introduces the main topics learning outcomes (Slide
3.2).
Which macro-environment factors are the most important to consider in digital marketing
context? Discuss the extent to which each of the macro forces are important to digital
marketing and try to establish ways in which the forces might be most relevant. At this point,
you can refer to SLEPT or PEST. Ask students which are the most important aspects of the
macro-environment that require management. Most students of digital marketing will be
familiar with the forces of the macro-environment, but it can be useful to put this into context
with the digital world and consider the implications for firms operating online.
2. The rate of environmental change. (Slide 3.4). The rapid speed of change of the
marketing environment in terms of new technologies, social, cultural and other trends
means that firms need to constantly review their environment to develop strategic agility.
On discussing these matters, students could be encouraged to identify how their own
values have changed in the last 3 months/12 months/5 years.
3. Discuss the Macro Environment Force. Technology (Slides 3.5 to 3.16)
Technology is fundamental to most businesses but when considering this force, it may be
useful to cover the technology underlying the internet, the web and mobile as this is quite
fundamental to the growth of digital markets (see pages 96 to 108). The level of detail will
depend on the focus of your class.
• Slide 3.5 Technological forces, introduces the 7Ds, pillars supporting digital marketing.
Each pillar links to specific aspects and technologies which could be used in the
discussion of this force.
• Slide 3.7 Free practical tool, directs to the Wappalyzer service which can be used to find
out which technology websites and brands are using to support digital marketing.
• Slide 3.8 A short introduction to internet technology. You can discuss the development of
internet technology; how the internet works; internal and Cyber security is an issue,
which warrants discussion.
34
• Slide 3.9 to 3.12 Reviewing martech for different companies. For further detail, see
below in the Activity section.
• Slide 3.13 Assessing URLs, slide outline different levels of domain names and types of
domains. Use in conjunction with Activity 2.1. See Activity section for further details.
• Slide 3.14 to 3.16 Emerging technologies and innovation. Technology will continue to
create challenges for the digital marketer, and they will need to reimagine how they
access target audiences, the type of content they provide and the digital services offered.
Pages 105 to 108 provide detailed information for each of these slides. Slide 3.14 shows
the diffusion–adoption curve and helps to support the introduction of different behaviours
by different adopters. It is useful to highlight this and can be used as an analytical tool to
aid managers to understand, a) the state at which their customers are in terms of their level
of adoption; b) for a firm to look at its competitors to assess the level of adoption of
certain technologies. For example, personalisation, mobile apps, and so on. Slide 3.15
shows a commercial application of the diffusion curve developed by Gartner (2011). The
use of the term Hype cycle to highlight different stages of adoption. This model can be
used to help students see the multiple opportunities created at various stages of adoption.
Slide 3.16 summarises the choices a company may make in a dynamic marketplace when
responding to changes in technology.
4. Remaining Macro environmental forces: Economic, political, legal, and social
• Slide 3.17 Legal forces – introduces key areas of consideration and can be used to frame
discussions of legal issues and associated digital marketing activities.
• Slide 3.18 and 3.19 Table 3.1 on page 109 looks at the laws controlling digital marketing.
More detailed discussion may also be covered about the types of information collected
from customers using Table 3.2 (Slide 3.20) on page 111. DMI 3.2 discusses cookies and
the legal constraints on use. You may wish to add this to your coverage of legal issues as
well as discussing Creative Commons license options (see page 117).
35
• Slide 3.21 introduces social forces.
• Slide 3.22 DMI Digital minimalism. This DMI is a useful discussion topic and can be
used as the basis of a discussion of consumer behavior in a digital context.
• Slide 3.23 introduces elements of political forces.
• Slide 3.24 introduces elements of economic forces.
5. Case study 3: Social media and the changing face of celebrity influencers
This case explores how the reach and influence of social media is reshaping the
marketing environment.
• Slide 3.25 shows the case questions.
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Activities
Activity 3.1: What’s in a URL?
Here are some of the components of these URLs:
• Http is the protocol at the foundation of the Web; https is the secure version
• The domain name is, for example, campaignlive.co.uk; or thedrum.com
• The top-level domain or TLD is uk (also known as gTLD). The uk domain is also referred
as a country-code top-level domain or ccTLD; the subdomain is who is in the URL
nominet.uk/whois.
• URLs provide information that enables us to have an understanding of how deeply we

are navigating into a website(s).
Nominet UK™ is the organisation that manages the TDL and is the .uk domain registry.
Visit https://www.nominet.uk and click on “Discover Nominet” and then “About us” to find
out how this organisation manages and protects the UK domain.
Then click on “Our Services” and select “WHOIS” to look up the following domain names
to find out who owns each domain, when it was registered, who was the registrar, the status
of the domain and more:
1. pearson.co.uk
2. netaporter.co.uk
3. yeovalley.co.uk
This activity is an opportunity to gain understanding of how the domain naming system
operates and to reflect on this in relation to navigating the web and finding brands online.
Activity 3.2: Reviewing the range of martech and digital insight tools
Purpose
To review how different types of insight can be harnessed to improve digital marketing.
Activity
1. Review the Digital Marketing Tools wheel shown in Figure 3.2 and the infographic
categorising 5,000 tools created by Brinker (2017) to gain an idea of the range of insight
tools available.
2. Split up your groups so that you select a range of different types of business, for example,
small business, retailer, financial services, travel company, B2B service and consumer
brand.
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3. For your selected business, use a tool such as BuiltWith.com, SimilarTech or the Chrome
extension Wappalyzer to see the martech installed.
4. Visit the full infographic containing examples of the tools at http://bit.ly/smartdigital

tools and discuss and categorise the tools by importance for a small business, choosing
one of these options:
A. Essential.
B. Useful for optimisation.
C. Less valuable for smaller businesses.
For example, categories 2 (Digital Analytics), 11 (Content Management systems) and 29

(email service providers) could all be seen as essential for all businesses.
This activity gives an opportunity for students to engage with both digital technologies and
companies which use the technologies. Also helps with building analytical skills for digital
marketing planning and more strategic application of digital technologies.
Activity 3.3: Do digital companies manipulate our behavior?
Purpose
To evaluate the influence of major digital companies on consumer behaviour.
Activity Task
Watch this TED Talk: ‘How Amazon, Apple, Facebook and Google manipulate our
emotions’ by Scott Galloway of NYSU (Go to YouTube and search for ‘How Amazon,
Apple, Facebook and Google manipulate our emotions’), which discusses the increasing
dominance of some businesses. The answer/discuss the following questions:
1. What is the combined level of influence of Google, Apple, Amazon and Facebook, in
terms of global GDP?
2. According to Scott, what are our major concerns about this rising level of influence of
the Big Four?
3. Discuss the extent to which the behaviour of these firms is anti-competitive.
This activity gives an opportunity to consider the power and influence of large and dominant
digital brands and to consider the extent to which such companies should be allowed freedom
in the marketplace. Or is there a need for greater control by governments and society?
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Digital Marketing Insight 3.1 The main website security risks
This DMI identifies key risks for consideration by digital marketers and provides a brief
overview of some of the issues a digital marketer should consider.
Digital Marketing Insights 3.2 Understanding cookies and the cookieless future
This DMI explores cookies, the types and how they are used. It also considers the future use
of cookies and the implications for privacy and data protection. Provides a summary list of
issues companies should consider when reviewing their data protection legislation and
compliance.
Digital Marketing Insights 3.3 Digital minimalism and digital addiction
This DMI discusses these concepts and focuses on the work of Cal Newport (2020) who
popularised the concept of digital minimalism. Also considers misuse of our time with
constant use of digital devices and platforms and links the relevance of these concepts to
marketing.
Mini Case Study 3.1; How blockchain supports product innovation from ‘social plastic’
to ticketless concerts
This mini case explores applications of blockchain and innovative companies. For example,
beauty brands from Henkel (Germany); financial services from Nordea (Northern Europe);
True-tickets B2B event and concert ticketing business (USA). The key learning point is to
encourage students to be able to consider the range of uses for blockchain.
Exercises
1. Summarise the key elements of the macro-environment that should be scanned by

and e-commerce manager.
The most important elements are as follows:
• Legal. For updates on e-commerce legislation, see Marketing Law

(www.marketinglaw.co.uk).
• Social. Ethical issues can be assessed through articles in the general press, for example,
The Guardian’s online channel (www.guardian.co.uk).
• Economic. Changes to economy affecting viability of service. Government statistical

sites such as www.statistics.gov.uk can be used to monitor this.
• Technological. Changes in use of technology; new technologies to enhance service

and emerging digital markets.
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• Political. Government incentives or restrictions and other major political changes

resulting from parliamentary actions, e.g. Brexit.
• Environmental. Impact of technology and its use on the Physical environment
2. Give an example of how each of the macro-environment forces may directly drive
the content and services provided online across multiple channels: web, mobile and
social media.
• Social. Localised content for different cultures to create social communities around
issues, products, brands, and so on.
• Legal. Use and control of personal data, for example, ensure a Privacy statement in
terms and conditions.
• Economic. Changing economic circumstances, inflation, interest rates, influence

spending and economic activity.
• Political. Funding opportunities.
• Technological. The incorporation of personalisation, specialist targeting.
3. What actions should digital marketing managers take to safeguard consumer

privacy and security?
Ensure compliance with GDPR legislation.
Privacy statements should explain the actions taken to the customers. Firewalls should be
maintained to minimise the risk of unauthorised access to customer data. Data should be
backed up such that it cannot be deleted. The relevant data protection act in the country
should be followed.
4. Give three examples of techniques digital channels can use to protect the users’
privacy.
Privacy protection is achieved through protecting the users’ data as follows:
• Firewalls
• Data access controls
• Login/password.
5. How do governments attempt to control the adoption of the internet and to what extent
does this impact on the democracy of information?
Governments attempt to control the use of the internet through policies to promote its use and
through monitoring messages through ISPs and through lobbying groups that control the
internet.
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The Department of Media, Culture and Sport has strategies designed to support and control
safe use of the internet, which cover seven areas of use:
1. Connectivity
2. Skills and inclusion
3. The digital sector
4. The wider economy
5. Cyberspace
6. Digital government
7. The data economy
6. Suggest approaches to managing the rapid change of technological innovation.
• Frequent review of new opportunities.
• Achieving balance between adopting all new technologies and conservative non-
adoption.
• Careful selection of technologies that will achieve competitive advantage.
1. What macro-environment scanning activities and steps are necessary when producing
a new product or brand?
To begin to answer this question students should consider macro-environmental forces

discussed in this chapter and identify the forces which are likely to be most relevant in
exerting an influence over a new product or brand.
Forces to monitor in order of relative importance:
• Legal. Data privacy, privacy laws, exploitations of personal data for economic gain
• Economic. Changes to economy affecting viability of service.
• Social. Cultural diversity amongst digital communities, what is acceptable ethical use.
• Political. Government incentives or restrictions.
• Technological. Changes in use of technology, new technologies to enhance service,

emerging digital markets.
• Environmental. Physical environment.
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2. You recently started a job as a digital marketing manager for a retailer. Produce a
checklist of all the different legal issues that you need to check for compliance on
the retailer’s digital channels.
Major legislation in the UK and Europe, which have implications for retail businesses, are:
1) Data protection and privacy law
2) Disability and discrimination law
3) Brand and trademark protection
4) Intellectual property rights
5) Online advertising law
Also consider Creative Common options in relation to sharing of content on web, mobile and
social media channels.
Students should be asked to refer to their local government data protection/privacy

information site such as https://www.gov.uk/data-protection to ensure coverage of all data
protection and privacy (email, cookies) actions.
3. Discuss the influence of the UK Government on the growth of the digital economy.
The UK Government supports economic growth both on and offline. The Government
supports major funding initiatives through Innovate UK and other funding bodies, which help
to develop various aspects of the digital economy, for example, projects focusing on:
• Artificial intelligence
• Infrastructure development
• Business skills development
Another part of their strategy is to develop creative clusters of tech firms, for example, Tech
City in London. The Government also provides frameworks, standards and procedures for
digital workers and employers and education initiatives.
The Government also supports development of certain sectors on the digital economy, for
example, Fintech sector, which is a world-leading industry in the UK.
The Government also sets out to ensure compliance, for example, the GDPR legislation.
4. Discuss the legal constraints a marketer should consider when managing social
media channels for a manufacturer brand.
A marketer should consider how to ensure that social media is used both legally and ethically
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and seek to avoid any negative practices, which could bring the brand into disrepute. For
example:
• Cyberbullying, especially children
• Hacking and subsequent misuse of personal and private data
• Trolling
• Virtual mobbing
• Frauds, scams, fake news
• Security issues
But there are many offences, which can occur with misuse of social media. Defamation of
character and freedom of expression are two examples of individual rights, which are at the
opposite ends of the spectrum and can cause issues when using social media. So, the marketer
has many situations to consider. See pages 115 to 126 in Chapter 3 for further discussion of
legal issues.
5. Social media can be a powerful communication channel. Discuss the opportunities

and pitfalls of these platforms with reference to the main social networks and
examples of how brands have used them positively or negatively.
This answer should consider the influence of society in order to access opportunities and
pitfalls. Pitfalls to consider:
• Cyberbullying, especially children
• Hacking and subsequent misuse of personal and private data
• Criticism of business
• Frauds, scams, fake news
• Security issues
• Capacity to affect reputations (at personal and business level)
• Relationships issues and breakdown of communication
Opportunities to consider:
• Connectivity between individuals, brands and communities
• Targeted conversations around topics and issues
43
• Highly targeted advertising
• Raise awareness – of new products, services, issues, news
• Build communities
• Sharing information, reviews, feedback, etc.
6. Debate the impact of digital technology on the way we live, work and enjoy
ourselves by focusing on freedoms and limitations.
Answers to this question may take many different forms. But the key element is that answers
provide two sides to their arguments: freedoms and limitations.
Arguments for freedoms:
• Sharing economy
• Access to information and a global knowledge base
• Social connectivity
• Flexible working
• Location and transport mapping and services
• Access to entertainment
• Tools for managing home and energy consumption
• Learning opportunities
• Health and well-being monitoring
• Automation and Smart technology
Arguments against limitations:
• Social exclusion of the digital have-nots
• Social exploitation – cyber bullying; terrorism
• Loss of privacy
• Loss of jobs through automation
• Isolation
44
• Encourages compulsive behavior – shopping, gambling, use of social media
• Always on society
7. Discuss the implications of not conducting environmental scanning when launching

a new brand.
Environmental scanning and analysis are processes of continuously monitoring the environment
and events and responding accordingly. It involves scanning the micro-environment including
competitor activity and customer demand. Its purpose is to ensure that the company is compliant
with the latest laws and innovations.
If a new to the world brand does not consider the environment, they may encounter many barriers
and make costly mistakes due to ignorance of market performance, standards and legal
requirements for trading in a particular market. They may launch a product which is socially,
culturally and ethically unacceptable and this could be avoided by having a sound understanding
of the marketplace prior to the launch of the brand.
Technological: New products and services are growing online, for example, cyber security,
mobile and SMS messaging applications are providing all spheres of society with the opportunity
to trade, shop and communicate, at anytime and anywhere. The shift to mobile channels is
significantly affecting physical channels. Wireless technology is also significant in the shift
towards digital.
Case Study 3: Social media and the changing face of celebrity influencers
Questions
Answers to these questions can be supported by students being encouraged to carry out desk
research to prepare for the discussion of the case in class.
1. Use the dimensions of the SMMF to analyse the following:
a) Kylie Jenner’s cosmetics
Kylie Jenner has over 250 million social media followers and she has mastered the art of
storytelling to enhance her popularity online.
Scope: Kylie uses major social media platforms for storytelling and sharing pictures, she
seeks to give her communications a sense of fun and intrigue in order to stimulate interactive
dialogues amongst her followers.
Culture: Kylie is the youngest member of the Kardashian family, but she has used her
knowledge of fashion and beauty to build her online brand. She has targeted Millennials and
Gen Z – who are very interested in new trends, have grown up with reality TV and social
media. Kylie knows how to communicate with her target market and does this through
Snapchat, Instagram and You Tube. Her knowledge of the target audience has enabled her to
develop an in-depth social media strategy.
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Structure: Kylie uses family networks to share her social media messages and partners with
her mum, sisters Kim and Khloe and Kourtney. She also partners with social media beauty
influencers to promote her brand.
Governance: Kylie uses the behind-the-scenes stories of her brand to promote her products,
but the main focus of her social media use is her own experiences. She is keen on listening
to feedback from her community of loyal followers and Kylie is also keen to say publicly
that all her messages and tweets are posted by her. In this way, she is able to control the
content and the tone of messages. However, Kylie Cosmetics has its own dedicated social
media accounts which are managed by the staff.
Bibliography for these answers:
Talbot, K. (2018) 5 social media lessons for learn from Kylie Jenner, Forbes https://www.
forbes.com/sites/katetalbot/2018/07/24/5-social-media-lessons-to-learn-from-kylie- jenner/
Hillier, L. (2019) Behind Kylie Jenner’s success in a saturated cosmetics industry,

https://econsultancy.com/behind-kylie-jenner-s-success-in-a-saturated-cosmetics-industry/
b) Shannon Coulter’s #grabyourwallet
Shannon Coulter is an American marketing consultant and full-time activist. The #grabyourwallet
is an organisation and social media campaign that aims to boycott companies with connections
to Donald Trump.
Scope: The grabyourwallet campaign is a political movement, which has targeted business
like Uber, Ivanka Trump’s clothing, Nordstrom and encouraged shoppers to boycott these
brands. She uses social media to elicit action from her followers.
Culture: Coulter launched a social media campaign to reach out to the mass-market and on
the busiest days of the grabyourwallet campaign there were 30,000 unique visitors.
Structure: Deploying the campaign is straightforward; Shannon sends out messages from
her kitchen table and manages the social media campaign herself.
Governance: Shannon is keen for her supporters to speak out and speak freely but for her
campaign she is the one sending out the messages.
Grabyourwallet (2018) Wikipedia, https://en.wikipedia.org
Newcomb, A. and Sottil, C. (2017) For Grab your wallet’s Shannon Coulter, there’s no
quitting, NBC news, https://www.nbcnews.com
2. Suggest how the SMMF helps to:
a) Interpret what is happening in the financial services industry in relation to

its use of social media.
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Initially, social media was not widely used by financial services organisations. This is a risk-
averse industry, which avoids potentially threatening situations. However, today many firms
in this sector do have a social media presence but they do not tend to actively engage their
customers. Facebook, Twitter and other platforms are used in a very controlled manner as a
marketing channel.
According to Smart insights (2019), there are various reasons why the FSI needs a presence
on social media:
• Consumers, prospects, and competitors are there.
• Brands get mentioned, whether they’re on social or not.
• Peer marketing is more effective than brand marketing. We believe our friends over
brands.
• It’s the largest focus group in the world where interaction can happen with consumers
on a one-to-one basis.
• Personalised engagement will move consumers up the value chain – from awareness to
brand advocate.
b) Provide strategic solutions for the use of social media that might help to protect banks
and building societies from the FAMGA companies.
Financial institutions must protect personal data as their customers place their trust in these
institutions based on their ability to do this. FAMGA’s are entering financial markets as
providers of payment services and financial products. In order to counter, FAMGAs
encroaching on their markets, banks must strengthen their relationships with their customers
and provide them with what they expect in terms of levels of service. The development of
Mobile banking apps is a sign that financial organisations are attempting to do this. The
future of banking relies on developing meaningful, trusting relationships, millennials market
segments, who have grown up with digital technology and have a very different approach
towards banking brands than their parents.
3. Discuss the extent to which it is possible to strategically manage social media using
Case Evidence 1 to 4 in the case study.
Kylie Jenner has succeeded in strategically managing her use of social media to build a
billion- dollar brand.
Shannon Coulter has exhibited less control and direction as it was not her initial intention
to develop the grabyourwallet campaign into a widespread political movement. So, her use
of social media has developed more organically.
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The financial services industry is attempting to control its use of social media (and limit risk)
by taking a fairly passive and limited approach towards its use. However, competitive threats
from FAMGAs have made traditional financial organisations rethink their use of social
media and if they are to succeed in the future, will have to find ways to strategically deploy
this technology to connect with new target markets.
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Part 2
Digital marketing strategy development
49
CHAPTER 4
Digital marketing strategy

An introduction to stages involved in developing a digital marketing plan.
Notes on using slides for fourth chapter in lectures – lesson plan
1. Digital marketing strategy? Slides 4.2 and 4.3 The slide introduces the learning objectives
and topics.
2. The context of a digital marketing strategy. Slide 4.4 and Figure 4.1 introduces the
building blocks of marketing strategy and highlights where digital marketing strategy fits
into the overall planning process of a firm.
3. Digital strategic initiatives. Slides 4.5 and 4.6 and Table 4.1 provides a summary of the
types of strategic marketing initiatives a firm may pursue when planning their digital
marketing strategy.
4. Discussion – is a dedicated digital strategy needed? (Slide 4.7) DMI 4.1 considers the
term post-digital world and the future role of digital strategy as a business concept.
5. Importance of integrated digital marketing strategy. Slide 4.8 and Figure 4.2 allows us
to consider the essential components for developing a digital marketing strategy and how
digital strategy is influenced by other planning activities in a firm.
6. Digital marketing planning failures and solutions. Slide 4.9 and Table 4.2 discusses
failure to plan how to manage digital channels can lead to problems, which can be
reduced if a digital marketing strategy and transformation plan is in place to manage
them. This table provides an opportunity to discuss issues around the relevance of
planning and the resultant failures which can occur.
7. How to structure digital marketing strategy. Slide 4.10 and Figure 4.3 shows an overall
omnichannel strategy process model created by Dave Chaffey and Dan Bosomworth to
summarise activities involved in creating and implementing a digital marketing strategy.
The figure highlights the complexity of the planning process and the elements which
should be considered. Shows how the SOSTAC planning framework can be applied.
Students should be aware of all elements of this model as it plays an important role in
giving structure to this chapter and introduces more complex aspects of digital marketing
planning. However, learning the mnemonic SOSTAC also helps students to recall the
stages of the planning process and the questions associated with each stage help to focus
attention on the purpose of each stage in the framework.
8. Situation Analysis – capability review. Slide 4.11 and Figure 4.4 is a staged model
which can be used for assessing the capabilities of an organisation in the field of digital
50
marketing. Dave Chaffey devised this stage-model for assessing the internal capabilities
of digital marketing (primarily for larger organisations). This model is shown on this slide
and is devised to help organisations improve their contributions from digital marketing.
9. Consumer profiles Slide 4.12 and Figure 4.5 refers to shopper behavior online and the
character variables which marketers should consider when planning campaigns.
10. Situation Analysis tool. Slides 4.13 and 4.14 consider SWOT in a digital marketing
context.
11. Setting goals and objectives Slide 4.15 and Figure 4.8 shows the relationship between a
firms’ vision, goals objectives and KPIs.
12. Aligning strategic initiatives with situation analysis and goal setting. Slides 4.16 and 4.17
and Table 4.6 provide examples for discussing types of objectives, strategies and KPIs.
13. Strategy formulation. Slide 4.18 introduces the Ansoff matrix and relates this to
potential strategies objects for growth. Refers to strategic decision 1.
14. Key decisions in Strategy development. Slides 4.19 and 4.20 provide students with a
structured approach to understanding digital planning and how to arrive at planning
decisions.
Strategy Decision 1: Market and product development.
Strategy Decision 2: Business and revenue model strategies.
Strategy Decision 3: Target market strategy.
Strategy Decision 4: Positioning and differentiation strategy. Including the marketing

mix.
Strategy Decision 5 and 6: Consumer engagements and social media strategy and
multichannel distribution strategy.
Strategy Decision 7: Multi-channel communications strategy.
Strategy Decision 8: Online communications mix and budget. This is covered in more
detail in Chapter 8.
Strategy Decision 9: Organisational capabilities. (7S). Alternative forms of structure

and responsibilities for e-commerce.
15. Segmentation and targeting process. Slides 4.21 and 4.22 focus on segmentation and
targeting. Figure 4.10 provides a process diagram for target marketing. The following
slide is an example of website segmentation.
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16. Profiling site visitors by engagement. Figure 4.12 on Slide 4.23 shows a model of how
customer lifecycle segmentation and the different stages they may pass through when
buying online and engaging with an online brand.
17. Differential advantage. Slide 4.24 and Figure 4.13 suggests how online brands often
trade in crowded markets, so it is important to understand how to develop a differentiated
positioning. Market segmentation is key to understanding these opportunities. Refers to
strategic decision 3.
18. Business adoption of digital channels. Slide 4.25 and Figure 4.14 refer to a business
strategic options and shows how online revenue contribution increases over a period of
time.
19. Influences on customer of multi-channel decision-making. Slide 4.26 and Figure 4.15 refer
to strategic decision 7 and the influences on customer of multichannel decisionmaking.
20. Channel coverage. Map Slide 4.27 and Figure 4.16 refer to strategic decision 7. A
multichannel communications strategy needs to specify the extent of communications
choices made available to customers and the degree to which a company uses different
channels to communicate with particular customer segments.
21. Summary of the 7 S framework. Slides 4.28 and 4.29 and Table 4.7 show an application
of the 7S which is a useful framework for reviewing an organisation’s existing and future
capabilities to meet the challenges posed by the new digital channels.
22. Matrix for evaluating digital marketing business investment alternatives. Slide 4.30 and
Figure 4.17 refer to strategic decision 6.
23. Typical KPIs for a digital marketing dashboard. Slide 4.31 and Table 4.8 present a grid
for use when looking at the performance of an online retailer. This table links also to the
RACE framework.
24. ASOS Case study. DMI Slides 4.32 and 4.33 present the case study questions and can
be used for introducing the case. Answers at the end of these instructor notes.
Activities
Activity 4.1: Benefits of digital marketing planning
Digital markets are growing in complexity as reach extends through new applications, social
media platforms and technologies (Vieira et al., 2019). Without a digital marketing strategy,
new business, brand exposure and revenues can all be significantly affected, particularly
since new entrants may encourage digital disruption within a sector.
Purpose
To consider the barriers and benefits to the adoption of digital marketing planning.
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Task
Imagine you are a marketing manager responsible for the development of your organisation’s
digital marketing strategy. Using an organisation you are familiar with, outline the barriers
and potential benefits of proactive digital marketing planning.
Answer
This activity should elicit a list of barriers and benefits of digital marketing planning. Here
are some suggestions:
Barriers might include the following:
• Lack of resources to access multiple integrated media and agencies.
• Issues associated with managing relationship across a number of agencies.
• Issues associated with achieving consistency across media and messages.
• Difficulties associated with building relationships with existing and new media agencies.
Lack of staff buy-in.
• Poor management and control.
Benefits might include the following:
• Better coordinated and more coherent message.
• Extended reach to wider target audiences.
• Stronger brand messages.
• More effective marketing planning.
Activity 4.2: Situation analysis for an e-commerce business
Purpose
To consider which elements of a situation analysis could help to avoid digital strategy
failures (see Table 4.2).
Activity
1. Imagine you are a newly appointed digital marketing manager and you have been asked
to present your views on how the company can improve its use of digital channels. Select
an existing company to focus on and give context to this activity.
2. Map out how the company is currently using digital channels.
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3. Make recommendations for how the company can increase and expand its use of digital
channels.
4. Review the potential failure points in Table 4.2 to ensure that your answer to 3 does not
expose the company to the risk of failure.
Answers
1. Individual choice of a suitable company to research for the activity.
2. Map of the chosen company’s use of digital channels, this should include,
web/mobile/social/. Answer should also explain how each channel is being used, for
example, sales channel, communication channel, engagement and so on.
3. In answering this question, suggestion should be made in terms of additional use for
existing channels and /or additional channels which are not currently used.
4. Answers should apply the ideas in Table 4.2. For each of the suggested channels (existing
and new).
Activity 4.3: Online value proposition
Purpose
To explore the concept of online proposition.
Activity
Visit the following websites and summarise their online value proposition. You should also
explain how they use the content of the website to indicate their value proposition to
customers.
• Shopify (https://www.shopify.co.uk)
• Airbnb (https://www.airbnb.com)
• Netflix (https://www.netflix.com)
• HubSpot (https:/hubspot.com)
• RS Components DesignSpark (rs-online.com/designspark/)
Answers
OVP is a statement of the benefits of online services that reinforce the core proposition and
differentiate an organisation’s offering. Places to evaluate the OVP are on the home page, About
Us and where the company is asking the visitor to sign up to an email newsletter as is the case
with a resource center (e.g. MyTek on www.tektronix.com).
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OVPs for:
• Shopify (https://www.shopify.co.uk)
E-commerce enabler: online business tools, a ‘hassle free platform’ to build retail businesses
online.
• Airbnb (https://www.airbnb.com)
Market disruptor. Market leading peer-to-peer letting of accommodation, bringing together

hosts and guests. Airbnb provides guest with unique stays in a variety of locations and for
hosts the value of the platform is it creates opportunities to generate income.
• Netflix (https://www.netflix.com)
World’s leading internet entertainment service. Global service, which members can
access anytime and anywhere.
• HubSpot (https://www.hubspot.com)
Leading customer engagement platform, which enables direct markets to control inbound
marketing content and messaging from one platform. Enables digital marketing
management.
• RS Components DesignSpark (rs-online.com/designspark/)
A leading portal for design information.
Digital Marketing Insights 4.1 Is a digital marketing strategy needed in the post-digital
world?
This DMI explores the concept ‘pot-digital’ and the debate over whether digital marketing
strategy is sufficiently distinctive from marketing strategy per se.
This DMI creates an opportunity for discussing the future positioning of digital marketing.
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Digital Marketing Insights 4.2: Customer profiles: segmenting digital audiences
Highlights classification variables, which can be used to develop customer profiles and
personas. Also explores influence of attitudes and beliefs.
Creates an opportunity to encourage students to develop customer profiles.
Digital Marketing Insights 4.3: Retail digital channels and mixed-mode buying
This DMI explores operational strategies and how the proliferation of touchpoints has led to
a complex journey for shoppers who buy online.
Key learning point: complexity of the online customer journey and how this journey may
transition between on and offline.
Case Study 4: ASOS shifts the focus of high-street retailing to enhance the customer
experience
Questions
1. Apply the SOSTAC model to ASOS and highlight why it has become such a successful
online fashion brand.
For full details of SOSTAC and its application, see pages 146 to 184.
Stage in the What should be ASOS Success strategies

SOSTAC considered?
Framework Examples:
Situation analysis: Goal performance To assess latest performance levels,
Where are we now? Customer insight visit: https://www.asosplc.com
SWOT
Brand perception
Capabilities and
resources
Objectives: where do Customer acquisition, Very good at customer retention and
we want to be? retention, conversion, acquisition
engagement
Strategy: How do we Segmentation, OVP, Product choice is key; branded and own
get there? integration, Tools label tailored to meet the requirement
of the target segment
See Figure 4.18. ASOS’s strategic
pillars and global business model
Tactics: How exactly e-marketing mix, Creative in communication campaigns:
do we get there? details of content ASOS magazine reaches new as well
strategy as existing markets
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e-word of mouth – powerful brand

positioning and use of celebrities has
given ASOS the edge over many of its
competitors
Search marketing, social media
Actions: The details Internal resources Well-resourced especially with
of the tactics and skills, technical skills, invests in R&D to stay
responsibilities and ahead of the competition
structures
Control: How do we KPI’s web analytics, Conducts very careful basket analysis
monitor performance? usability testing, to manage customer activity and
visitor profiling performance
2. Describe how ASOS uses digital channels to engage its customers.
ASOS uses its magazine, eWOW of mouth. celebrity endorsement, search marketing and
social media marketing to attract attention and engage new and existing customers.
3. Discuss how ASOS has used digital marketing to develop its differentiated market
position.
ASOS operates in highly competitive fashion market and has managed to stay ahead by:
• Current designs always offering the latest fashions incorporating new ideas and trends in
fashion.
• ASOS offers a range of different price points so as to capture a wide market share, this
helps the company to differentiate itself from more mainstream catalogue retailers, for
example, Very.com.
• Tactical discounting, ASOS has an ‘outlet’ section in its website to satisfy bargain hunters
as well as regular shoppers. It also does promotional discounting using email discount
codes to regular customers.
• Reliable fashion – through its branded ranges, ASOS provides core items to suit many
tastes.
• Breadth and depth of product choice, through own-label and designer brands.
• Operationally reliable service.
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Exercises
1. How does a digital market strategy integrate with corporate and marketing strategies?
Digital marketing is becoming more integrated to every part of a firm’s activities and so it is
important that the planning is integrated to corporate and marketing plans. Refer to Figure
4.2 Hierarchy of organisational plans on page 144.
2. What is the role of monitoring in the strategic planning process?
Assessing performance against objectives and evaluating the success of implementation

require monitoring. This can be achieved using quantitative measures and digital analytics,
for example, visits to a site and marketing outcomes are part of the process since it indicates
whether strategic objectives have been achieved. Or using qualitative measures.
See further discussion in Chapter 9 of methods of measurement and monitoring.
3. Summarise the main tangible and intangible business benefits of the digital channels
to a company.
Refer to the section on potential business benefits within strategic goal setting, specifically
Table 4.4, page 156. The key benefits can be summarised as follows:
Tangible: customer acquisition (new sales).
Tangible: customer retention (incremental sales).
Tangible: cost reduction.
Intangible: image enhancement (corporate and brand).
4. What is the purpose of a digital marketing audit? What should it involve?
The purpose of the digital marketing audit is to assess the current marketing environment,
internal and external. In particular, market research must answer how effectively competitors
are using the medium and how customers are using it. The audit also considers use within
the current company customer base. More specifically, the purpose of the audit is to assess
‘Where are we now’ in terms of performance against set goals (7S model); customer insights
and brand positioning; SWOT; internal capabilities and resources.
5. What does a company need in order to be able to state clearly in the mission
statement its strategic position relative to the internet?
Essentially, the relative significance of the internet as a mechanism for delivering online
value and extending customer service.
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6. What are the market and product positioning opportunities offered by digital
channels?
• promote/sell existing products to existing customers/markets (a common application);
• promote/sell existing products to new customers/markets, that is, sectors or

geographically (may readily open new international markets for products that can be
delivered and serviced remotely); and
• promote/sell new products to existing or new customers/markets (new products give

the best opportunities for exploiting the new medium).
1. Discuss the frequency with which a digital marketing strategy should be updated for
a company to remain competitive.
This question is intended to highlight the impact of the dynamism of the internet/digital
technologies. Students should be encouraged to think about the following characteristics of
the marketplace, which suggest that five-year marketing plans or even one-year marketing
plans are probably inappropriate:
• Rapid growth in access levels of customer base in different countries may affect
feasibility/demand for Internet services.
• Speed at which new entrants can enter market.
• Speed at which internet can change their online services in terms of price and features.
• Changes in distribution channel/marketplace, for example, advent of business portals and

auction mechanism for purchasing.
• Introduction of new tax/export legislation.
• These highlight the need for careful monitoring of the marketplace and rapid response
on a monthly basis. Porter’s five competitive forces can be used as a framework.
2. Explain the essential elements of a digital marketing strategy.
The framework presented in this chapter uses the elements of a classic strategic marketing
plan, namely:
• Goal setting (develop digital marketing strategy).
• Situation review (develop digital marketing strategy).
• Strategy formulation (develop digital marketing strategy).
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Resource allocation and monitoring (define internet marketing plan and monitor).
The SOSTAC/omnichannel marketing strategy process model Figure 4.3 on page 147 sets out
each of the key elements of the planning process.
3. Discuss the extent to which the eight key strategy decisions are important to a new
online retail business.
Each of the decisions help a retail business to focus on key aspects of business strategy
development:
Decision 1 – Market and product matrix helps to identify strategies to increase sales
through either product or market development or a combination of both.
Decision 2 – Helps to identify suitable business models.
Decision 3 – Focuses on target marketing strategy and who the customers will be.
Decision 4 – Positioning of the brand and how it will be differentiated.
Decision 5 – Customer engagement and social media strategy.
Decision 6 – Helps to identify multichannel distribution strategy.
Decision 7 – Multichannel communication strategy.
Decision 8 – Online communication mix and budget.
4. The digital environment is disruptive, volatile and highly susceptible to change.

Strategy involves long-term planning and future resource allocation. Discuss the
conflicts raised by these two statements for a firm planning its future digital
strategy.
To plan requires considering future goals based on available information, assessment of

past performances and predicting the future. As the digital environment is highly
volatile, this adds another level of complexity when developing plans which can deliver
set goals. This volatility has increasingly led to short-term goal setting and more emphasis
on tactical rather than strategic goals. Whilst this is a widespread trend, firms like
Amazon and Apple set long-term goals. Jeff Bezoz places long-term thinking as a key
strategic priority.
Answers should also build an argument using Table 4.4.
5. Suggest how to develop a target marketing strategy for a digital marketing

campaign for a takeaway fast-food business.
Answer should apply the SOSTAC framework presented in Chapter 4, see Figure 4.3 on page
147 and uses the elements to develop each of the stages of the strategic marketing plan:
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• Goal setting (develop Internet marketing strategy).
• Situation review (develop Internet marketing strategy).
• Strategy formulation (develop Internet marketing strategy).
• Resource allocation and monitoring (define Internet marketing plan and monitor).
6. Briefly explain the purpose and activities involved in an external audit conducted
as part of the development of a digital marketing strategy.
The external audit should consider the state of the market in terms of customers and
competitors. Pertinent factors for the internet include:
• The size of the market, in terms of potential customers who have access to the internet.
• The type of marketplace (are customers purchasing through price comparison services?).
• How the market share varies across different countries and for different products and
services.
7. Explain what is meant by the online value proposition and give two examples of the
value proposition for online businesses of your choice.
8. Imagine you are the marketing director for a high-street fashion retailer:
• suggest how you would integrate digital media into your marketing strategy;
• outline and justify the objectives you would set for a digital strategy designed to grow
the online revenue contribution.
9. For a company of your choice, devise a digital marketing strategy.
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CHAPTER 5
Digital branding and the marketing mix

This chapter shows how the traditional marketing mix can be applied to inform digital
marketing planning and strategy.
Notes on using slides for the fifth chapter in lectures – lesson plan
Introduction to the marketing mix. Slide 5.2 introduces the elements of the chapter, learning
outcomes and key topics.
1. What is the marketing mix? Slide 5.3 and Figure 5.1 show a summary of the seven
elements of the marketing mix and their relevance to the internet.
2. Branding in a digital environment. Introduction to brands (Slide 5.4). Branding is as

important online as it is offline. It helps to differentiate an offer and distinguish between
companies. Slide 5.5 presents how digital media supports brand elements.
3. Product. Introduce this element of the mix through Slides 5.6 and 5.7 looking at some
examples of implications for the core product. Discuss options for varying the core
product. Important to highlight those changes to Product should that be informed by
market research to maximise opportunities to deliver customer satisfaction.
4. The long tail concept. Slide 5.8 contains Figure 5.2, Zipf’s law of the decreasing
popularity of items, for example, the long tail, which shows the diversity of customer
behaviour in selecting products. This concept is useful when considering product and
market opportunities. Zipf’s law shows the relative popularity of items. Digital media
can be used to facilitate choice down to a low level of demand.
5. Price. Discuss implications (Slides 5.9 to 5.10) of pricing policies and strategies for
online products and services. Digital media enables the refocusing of price and how it
might be used to distinguish brands online. Useful to discuss how the pricing options
(slide 5.10) can be used by different online brands and give examples for each.
6. Place. Slides 5.11 to 5.13 explore place. Online place relates to distribution and the
different types of marketplaces. Discuss the similarities and differences between online
and offline locations and encourage students to identify similarities, for example,
payment mechanisms and how these are changing in the physical world to mimic the
virtual world. Table 5.2 considers different places for virtual market representation. Slide
5.13 displays Figure 5.4 which shows Google shopping.
7. Promotion. Slide 5.14 shows the main elements of the promotional mix. This is not
covered in this chapter, since it is the main topic of Chapters 8 and 9.
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8. People, process and physical evidence. The service elements of the mix are important as
they impact on customer loyalty. People, process and physical evidence are particularly
important for service delivery (Slide 5.15). Slides 5.17 and 5.18 represent process for
managing inbound enquiries. Physical Evidence is represented on Slide 5.18.
9. Case Study: Spotify streaming develops new revenue models. Slides 5.19 and 5.20 present
Figure 5.7 and the questions for the case study.
Activities
Activity 5.1: How the marketing mix creates opportunities to gain differential
advantage.
Purpose
To highlight the scope for applying digital technology as a strategic marketing tool.
Activity
Review Figure 5.1, then consider each of these companies and how they have used elements
of the marketing mix to differentiate their brand online and create new market opportunities:
Suggested answers:
ASOS – Online clothing brand; product ranges are made by ASOS or other leading clothes
brands, which give the company a huge product portfolio. The e-commerce portal has
hundreds of different brands and so ASOS can very successfully differentiate the brand
through its product offer. ASOS uses pricing strategy to offer affordable and competitive
prices to its target audiences.
Facebook – Social media platform; advertising and promotions is how FB differentiates the
brand.
Alphabet (Google) – Internet search and advertising; this part of the business is interesting
in relation to the marketing mix as Google freemium pricing model for its search facility is
a key element of its differentiated position.
DocuSign – Electronic signatures; product and service are two important elements of the
mix for this brand. The DocuSign signature product eliminates manual tasks and is easy to
implement.
Netflix – Subscription-based streaming service; online streaming service, which uses a

subscription pricing model to generate income. Product choice is also a key differentiating
factor for this brand.
Adobe – Software company; service, Adobe focuses on its customers and providing its target
market with the services they require. Its customisation strategy has enabled the brand to
develop strong and committed relationships with its customers.
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GoDaddy – Domain registrar; Domain registrar and web hosting company offers strong
customer support and high levels of service for its core products.
eBay – Online auction and shopping. The online auction platform aims to stand out by
providing unique services and online support.
Activity 5.2: How to develop a new brand name
Purpose
To illustrate how non-words (those not recognised in everyday language) can be used as
brand names.
Activity
Visit the brand name generator at
http://business-name-generators.com. Generate new brand names that you feel have potential
as online brands. Evaluate your choice using the following criteria:
1. Easy to pronounce, Y/N.
2. Easy to remember, Y/N.
3. Intriguing word pattern (syllables and consonants), Y/N.
4. Has the potential to attract attention, Y/N.
5. Not close to existing known word(s), Y/N.
6. Creates a feeling of trust, Y/N.
7. Has an ‘air’ of professionalism, Y/N.
8. Suitable top-level domains available?
Once you have a name which you feel has potential to be successful (more than 5 Ys), suggest
some products which could fit with the name.
To answer, use the questions listed 1–7 to create a grid and then text the brand names you’ve
generated, for example:
Example of Pronunciations Memorable Intriguing Non- Possible products

a brand patterns existing
name word
Zoomlax Y Y Y Y Traffic App;
software;
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X-tough Y/N N Y Y Technically

enhanced clothing
Donair Y N N Y Air conditioning;
low-cost Asia Minor
airline
Digital Marketing Insights 5.1 Zoom freemium products. This DMI considers Zoom Inc.
and how video conferencing became so important during the pandemic.
Digital Marketing Insights 5.2 Beauty Pie has created a luxury brand at discount prices.
This DMI explores the online business model deployed by Beauty Pie. By focusing on price
transparency, the company can offer the customer the best possible prices for luxury
cosmetics.
Exercises
Self-assessment questions
1. Review the extended marketing mix (7Ps) and for each element of the mix identify
an important change in the digital context.
Figure 5.1 shows the seven elements of the marketing mix and the opportunities to vary the
mix in the digital context. Use this figure as the basis of a class discussion on the scope
offered by the digital mix.
Possible examples include the following:
• Product – varying core product characteristics and extended product characteristics

and researching consumer needs for new products.
• Price – prices have become dynamic and more flexible.
• Promotion – highly interactive and personalised.
• Place – virtual and connected worlds are merging through widespread adoption of
multichannel strategies.
• People, physical evidence, process – highly streamlined, faster.
2. Give examples of core and extended products you might encounter in digital
environments.
Products most amenable to changes are digital products such as media and music or service
products such as information services, which can be delivered via the internet so there is
much scope to launch a core product and then develop this further. Table 5.1 provides a list
of examples of core products and extended products offered by well-known digital brands.
Use this table as the basis for a class Q & A session.
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3. Explain the implications of the internet for price.
The main implications of the internet for price are:
• Increased price transparency and its implications on differential pricing.
• Downward pressure on price (including commoditisation).
• New pricing approaches (including dynamic pricing and auctions).
• Alternative pricing structure or policies.
4. What are the implications of the internet for place?
The main implications of the internet for the place aspect of the mix are:
• Place of purchase – vendor oriented, neutral or buyer oriented.
• New channel structures, for example, disintermediation, reintermediation and

countermediation.
• Channel conflicts with distributors or sales force.
• Virtual organisations
• Extended trading hours 365 days/24/7
5. Explain how digital channels have altered how companies can differentiate their
brands online.
Branding in digital environments helps customers to differentiate between products and

services. Online brands must follow offline brand principles and ensure the following:
• Brand values – set out the core values of the product or service
• Brand assets – distinctive names, symbols
• Brand personality – the character of the brand
• Brand reflections – how the customer perceives the brand
as well as taking the opportunity of developing these elements in the virtual world.
Once a digital brand has established the above, then it can begin to explore the opportunities
each of the elements the mix has to offer, for example:
• Product – opportunities for varying and adding services to the core product
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• Price – variable and flexible pricing models
• Place – new channel strategies
• Promotion – creative and instantaneous dialogues
1. ‘The marketing mix is no longer a valid concept in the internet era.’ Discuss.
This is clearly unacceptable since product features and benefits; prices and distribution are
still important!
But in support of the statement, the point can be made that the customer-oriented 4Cs
perspective on the marketing mix becomes more relevant:
• Customer needs and wants (from the product)
• Cost to the customer (price)
• Convenience (relative to place)
• Communication (promotion)
This highlights the importance of assessing customer needs through research and the internet is a
tool to achieve this. The increased availability of information about products through the internet
tends to lead to commoditisation, so it can be argued that customers can compare the mix for
products more readily, thus making other factors such as the trust associated with a brand more
important. Customer relationship management, based on targeting, segmentation and positioning,
has become a more important element of annual planning in the internet era.
2. Critically evaluate the impact of the digital marketing context in relation to the
elements of the mix for an industry sector of your choice.
This is a straightforward answer assessing each element of the mix in the order it is presented
in the chapter. Answers should be put into the context of the students’ chosen industry.
3. Discuss the potential impact of the internet on a firm’s pricing policies.
This answer should illustrate options through digital products or services that have the most
options, for example, rental/subscription, pay per use and unlimited usage. Suitable
framework is that of Baker et al. (2000), which suggests that companies should use these
three factors to assist in pricing:
These three factors are (1) precision, (2) adaptability, and (3) segmentation.
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The implications on traditional pricing options presented by Bickerton et al. (2000) should
also be reviewed:
• Cost plus pricing
• Target profit pricing
• Competition-based pricing
• Market-orientated pricing
New pricing options: forward and reverse auctions can be discussed under the heading
adaptability. Also, alternative pricing structures and policies, which are emerging alongside
new digital products, for example, digital music, software and remote services.
4. Discuss the opportunities offered by the Place element of the mix for (a) physical
retailers, and (b) digital retailers.
Answer could begin by discussing the significance of distance in the movement and provision
of digital products and services. Digital products and services are able to largely dispense
with the logistical issues associated with the movement of physical goods.
The answer can then discuss other key main areas, for example:
• Place of purchase.
• New channel structures.
• Channel conflicts.
• Virtual organisations.
• Multichannel strategies.
5. Explain the opportunities provided by digital channels for leading brands when
launching new products.
Answer should discuss:
• Options for varying the core product – for example, offering new and additional
information to extend the service.
• Options for offering new digital products – for example, subscriptions, pay-per-view,
bundling, ad-supported content.
• Speed of new product development.
• Speed of diffusion on new product diffusion.
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6. Discuss the extent to which the internet is affecting the physical high street.
Growth of online sales has grown to a point where in the UK approximately 20 per cent of
all sales take place online. This is causing physical retailers that are using digital channels to
rationalise their property portfolios and, in many cases, reduce the number of physical stores
they operate. This is causing a contraction of towns and an increase in vacant stores.
Digital channels facilitate wide reach and enable international sales which provide retailers
with growth opportunities.
Many businesses are still not open online particularly amongst SME businesses and they are
missing out on sales opportunities.
Competition from FAMGA and other large digital players are taking significant amounts of
online revenue and intensifying competition. The internet has opened up new channels to
market and in doing so is putting pressure on High Street stores. Those which do not adopt
digital channels and media may struggle in the future.
7. Explain how an organisation can vary its promotional mix using the internet.
New communication options include:
• Search engine marketing.
• Link building.
• Banner advertising and sponsorship.
• PR.
• Email.
• Affiliate marketing.
• Social media and
• Buzz marketing.
8. The global pandemic has significantly disrupted the marketing environment,

creating opportunities for digital brands to thrive. Examine the extent to which each
of the elements of the marketing mix have contributed to such online success.
Use Figure 5.1 as a foundation for answering this question. Suggested examples for each of
the elements of the mix:
Product: Video conferencing Zoom and Microsoft MS Teams are two examples of products
which saw their use explode during the pandemic and perhaps more significantly changed
working practices in both the short and longer term.
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Promotion: Social media has extended the reach of fund raising campaigns – Brands Tesco
love food stories / Maltesers – Isolation of life /. YouTube engaged with the pandemic
through it #stayhome and #withme campaigns.
Price: High demand products and shortages in supply saw prices rise; pet food, nappies toilet
rolls and cleaning products all saw increases in prices online.
Place: Became online. The pandemic gave a significant boost to e-commerce and online
sales. In the early stages, some grocery retailer in the UK had to restrict ordering online,
putting controls in place for who could order and how many products they could buy, for
example, Sainsburys / Tesco.
People: Service staff became virtual. The financial service industry had to largely operate
online; no face-to-face meetings for arranging mortgages or loans. Chat bots were introduced
by many companies to help with the demand for customer support.
Process: As customer moved online, processes had to be adapted to operate successfully

using online channels. Healthcare for example had to find ways to provide patients with
prescription drugs. Online video consultations with doctors and nurses became the norm
during the pandemic.
Physical evidence: Packaging became an important opportunity to convey brands

commitments to their customers delivering goods in a safe and reliable manner. The demand
for sustainable and hygienic packaging increased significantly during the pandemic and these
trends continue to reshape the global packaging industry.
Case Study 5: Spotify streaming develops new revenue models
Questions and Answer
1. Explain how Spotify uses the marketing mix to create differential advantage.
Spotify is a music subscription service, which operates in the challenging and complex music
industry. Digital platforms have mixed things up and opened up opportunities in the
marketplace.
According to the British Phonographic industry (BPI), music streaming continues to be a

booming business with over 14.8 billion music tracks being downloaded in 2014 in the UK
(which is double the number compared to the previous year). By 2019, predictions suggest the
market for digital music will be worth approaching 14 billion US dollars. So, for Spotify,
there is market growth to capitalise on. When developing its marketing communication
strategy, Spotify has clearly defined its positioning propositions.
Daniel Ek is the co-founder and CEO of Spotify, a music application, which was launched
in 2008, from it base in Stockholm, Sweden. Spotify began to attract investment and began
to implement its marketing strategy.
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Use of the marketing mix:
Product and price: Spotify were aiming to create a legal and safe digital environment for music
streaming and developed a revenue model which overcame the issues of music being free at the
point of consumption in order to satisfy customer needs.
This involved using two modes of access to the music (1) a freemium model – free advertising-
supported streaming service, and (2) a premium subscription service, which offered access to
millions of music tracks, free from advertising. This revenue model successfully supports a
distinct value proposition, which encourages users to sign up to the service. By 2015, Spotify had
15 million paying customers and 45 million free users. Recording artists receive payment per
streamed track.
Promotion: Spotify uses a range of interesting advertising formats:
• Audio Ad
• Display
• Homepage Takeover
• Branded Playlist
• Video Takeover
• Advertiser Page
Place is virtual and streaming music from online sources has many advantages such as
instant access to a global resource of music, opportunities to share music, search for new
artists and enjoy music on the go, anywhere in the world from a mobile device. This has
quickly become a very popular way to access music and which many millions of music lovers
around the world have been keen to adopt.
2. What is Spotify’s core product and what does it add to the offer as part of its extended
product?
The core product is the digital streaming music service offered by Spotify. The brand continually
looks for opportunities to extend its product offer with new and extended product lines. Using its
data on individuals has enabled personalised playlists to be offered based on individual likes and
dislikes. Other examples, Hey Spotify, a voice-enabled feature, gives mobile users a hands free
music listening experience. The car thing a smart music player for the car.
3. Suggest how the launch of ‘Hey Spotify’ (its voice feature) for mobile users might add
value for its customers.
Hey Spotify is a voice-controlled service which gives mobile users the opportunity to more freely
access their music playlists. It means for the customer unlimited access to their music, improves
search, makes listening to music easier. Voice controls bring many useful features, but it is also
important to consider personal security and privacy as this could be considered to be negative
value by the customer.
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CHAPTER 6
Data-driven relationship marketing using digital

platforms
Building long-term relationships with customers is essential for any business and this chapter
explores techniques for achieving relationship marketing using data-driven marketing techniques.
Notes on using slides for the sixth chapter in lectures – lesson plan
1. Learning objectives (Slides 6.2 and 6.3). Recommended that students are reminded
about the complexity of lifecycle marketing (Figure 2.1 or similar Figures 6.2 or 6.15)
and how marketing automation based on insight about customer interactions and profiles
can help manage this complexity. This is typically rules-based, but AI and machine
learning can reduce this. Both require the overall lifecycle to be considered.
• Assess the relevance and alternative approaches for using digital platforms for customer
relationship management by encouraging interactions through social media, mobile
messaging and email marketing
- Introduction
- Concepts of data-driven customer relationship marketing
- Customer lifecycle management strategy
• Evaluate the potential of data-driven marketing, artificial intelligence and ‘Big Data’
using digital technology and marketing automation to deliver more relevant interactions
and encourage customer loyalty
- Data-driven marketing techniques
- Applying artificial intelligence and Big Data to support data-driven marketing
- Using data analysis and targeting techniques to increase customer loyalty and
value
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• Assess how to integrate social and mobile interactions to develop social CRM
capabilities
- Using social media to improve customer loyalty and advocacy
2. Channels supporting customer engagement (Slide 6.4, Figure 6.1). Explains the
devices and media used to deliver messaging (Relate back to 7Ds).
3. Benefits of using CRM (Slide 6.5). Ask the students about the benefits of CRM or
marketing automation.
4. CRM technologies and data management (Slide 6.6). Consider different data types to
harness.
5. The goals of marketing automation (Slide 6.7). This quote from Dave Chaffey is
another way of explaining the benefits of data-driven digital communications.
6. Concepts of data-driven customer engagement (Slides 6.8 and 6.9). Covers marketing
automation and sales force automation.
7. Email marketing opportunities (Slide 6.10, Figure 6.2). Despite the popularity of
social media across all age groups, especially the younger age groups, email marketing
is a more effective direct sales driver (see, for example Figure 9.1). This figure shows
how automation can be used to schedule many types of email for lifecycle marketing
(Figure 6.15) explores social media marketing.
8. Customer lifecycle management strategy (Figure 6.3). Another introductory slide

related to strategic communications objectives.
9. Permission marketing (Slide 6.12). Explains the concept via the ‘dating the customer’
idea of Seth Godin.
10. Permission marketing example (Slide 6.13, Figure 6.4). This is a classic approach
seen on many retail sites – ask students for examples where there is a discount off first-
time purchase.
11. ‘E-permission marketing principles’ (Slide 6.14). Additional practical guidelines from
Dave Chaffey to implement permission marketing.
12. Touchpoint options for achieving permission (Slide 6.15, Figure 6.5). Different
touchpoints for achieving ‘opt-in’. Can refer to legal requirement for this detailed in data
protection and privacy section in Chapter 3.
13. Lead scoring and lead grading (Slide 6.16, Figure 6.6). A common approach to
evaluating the future potential of prospects using marketing automation.
14. Automated contact strategy example (Slide 6.17, Figure 6.7). Achieved through email
marketing, similar to Figure 6.2, but applied to retail.
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15. An automated email sequence (Slide 6.18, Table 6.1). This is a method for planning
contact strategies to achieve communications goals. Could be used in assignments
focusing on a company example.
16. Targeting options to increase relevance (Slide 6.19, Figure 6.8). Ask students about
the implications of the pyramid for data usage for targeting.
17. AI options (Figure 6.20, Figure 6.10). Presented in relation to the RACE lifecycle
(Similar to Figure 6.2)
18. Satisfaction and loyalty drivers (Slide 6.21, Figure 6.11). Reviews what needs to be
considered when aiming to improve customer satisfaction and loyalty.
19. Different levels of engagement, e.g. for online banking (Slide 6.22, Figure 6.12). A
visual way of explaining engagement through time for a single person. Can be shown
for different time periods (hurdle rates).
20. Cohort analysis example (Slide 6.23, Table 6.3). A more advanced technique. Ask
students which month is most concerning and why? (March since highest churn).
21. Lifetime value segmentation (Slide 6.24, Figure 6.13). A more advanced technique for
considering which audiences should be targeted to maximise value.
22. Lifetime value (Slide 6.25, Table 6.4). A more fundamental technique than previous
two to review value of cohort, but advanced.
23. RFM Analysis (Slide 6.26, Figure 6.14). Another advanced technique mainly relevant
to retail, although RF analysis can be used for any form of digital interaction.
24. Social media touchpoint opportunities (Slide 6.27, Figure 6.15). A summary of how
social media marketing techniques can be used across the customer lifecycle.
25. Social media activities requiring management (Slide 6.28). Five common strategic
activities beyond ‘social sharing’.
26. Using social media to improve customer loyalty and advocacy (Slide 6.29, Figure
6.16). Showing how social media can extend beyond marketing into other business
functions.
27. Buffer case study (Slides 6.30 and 6.31).
28. Summary of strategic CRM activities (Slide 6.32).
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Activities
Activity 6.1: Charity uses lifetime value modelling to assess returns from new CRM
system
A charity is considering implementing a new email marketing system to increase donations

from its donors. The charity’s main role is as a relief agency that aims to reduce poverty
through providing aid, particularly to the regions that need it most.
Currently, its only email activity is a monthly e-newsletter received by its 200,000
subscribers, which features its current campaigns and appeals. It hopes to increase donations
by using more targeted approach based on previous customer behaviour. The email system
will integrate with the donor database, which contains formation on customer profiles and
previous donations.
The company is considering three solutions that will cost between £50,000 and £100,000 in
the first year. In the charity, all such investments are assessed using lifetime value modelling.
Table 6.4 is a lifetime value model showing customer value derived from using the current
system and marketing activities.
A. Donors – this is the number of initial donors. It declines each year dependent on the
retention rate (row B).
B. Retention rate – in lifetime value modelling this is usually found to increase year-on-
year, since customers who stay loyal are more likely to remain loyal.
C. Donations per annum – likewise, the charity finds that the average contributions per
year increase through time within this group of customers.
D. Total donations – calculated through multiplying rows A and C.
E. Net profit (at 20 per cent margin) – LTV modelling is based on profit contributed by
this group of customers; row D is multiplied by 0.2.
F. Discount rate – since the value of money held at a point in time will decrease due to
inflation, a discount rate factor is applied to calculate the value of future returns in terms
of current-day value.
G. NPV contribution – this is the profitability after taking the discount factor into account
to give the net present value in future years. This is calculated by multiplying row E by
row F.
H. Cumulative NPV contribution – this adds the previous year’s NPV for each year.
I. Lifetime value at net present value – this is a value per customer calculated by dividing
row H by the initial number of donors in year 1.
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Based on preliminary tests with improved targeting, it is estimated that with the new system,
retention rates will increase from 50 to 51 per cent in the first year, increasing by five per
cent per year as currently. It is estimated that in year 1 donations per annum will increase
from £100 per annum to £120 per annum, increasing by £20 per year as currently.
Question
Using the example of the lifetime value for the current donor base with the current system,
calculate the LTV with the new system.
Answer
Table 6.4 Lifetime value model for customer base for current system
Current
Year 1 Year 2 Year 3 Year 4 Year 5
Donors 1,00,000 50,000 27,500 16,500 10,725
Retention 50% 55% 60% 65% 70%
Donations per annum £100 £120 £140 £160 £180
Total donations £10,000,000 £6,000,000 £3,850,000 £2,640,000 £1,930,500
Net profit (at 20% margin) £2,000,000.0 £1,200,000.0 £770,000.0 £528,000.0 £386,100.0
Discount rate 1 0.86 0.7396 0.636 0.547
NPV £2,000,000.0 £1,032,000.0 £569,492.0 £335,808.0 £211,196.7

contribution
Cumulative NPV £2,000,000.0 £3,032,000.0 £3,601,492.0 £3,937,300.0 £4,148,496.7
contribution
Lifetime value at net £20.0 £30.3 £36.0 £39.4 £41.5

present value
After system installed
Year 1 Year 2 Year 3 Year 4 Year 5
Donors 1,00,000 51,000 28,560 17,422 11,498
Retention 51% 56% 61% 66% 71%
Donations per annum £102 £122 £142 £162 £182
Total donations £10,200,000 £6,222,000 £4,055,520 £2,822,299 £2,092,683
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Net profit £2,040,000.0 £1,244,400.0 £811,104.0 £564,459.8 £418,536.5

(at 20% margin)
Discount rate 1 0.86 0.7396 0.636 0.547
NPV contribution £2,040,000.0 £1,070,184.0 £599,892.5 £358,996.5 £228,939.5
Cumulative NPV £2,040,000.0 £3,110,184.0 £3,710,076.5 £4,069,073.0 £4,298,012.5

contribution
Lifetime value at net £20.4 £31.1 £37.1 £40.7 £43.0

present value
Increase in NPV for new £40,000.0 £78,184.0 £108,584.5 £131,773.0 £149,515.8

system
Return on investment at –20.0% 56.4% 117.2% 163.5% 199.0%

£50K
Return on investment at –60.0% –21.8% 8.6% 31.8% 49.5%

£100K
Mini Case studies
Mini case study 6.1 Nestlé uses gamification to engage smartphone users
This mini case explores the use of digital media and gamification to engage target customers.
Mini case study 6.2 Using lead scoring and grading to improve B2B communications
relevance
This case explores lead scoring and grading.
Mini case study 6.3 WHSmith uses behavioral email to encourage engagement. This mini
case explores behavioral email marketing.
Mini case study 6.4 Taking the guesswork out of CRM – how Guess™ uses predictive
analytics.
This mini case presents an interview with Guess marketing director Victoria Graham
who discusses predictive analytics and the implications for marketing.
Mini case study 6.5 How car manufacturers use loyalty-based segmentation.
Case study 6 Buffer: from idea to paying business customers in seven weeks
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Questions
1. Explain the data-driven customer acquisition and retention techniques that Buffer
used to grow the company.
These include:
• Freemium model to encourage trial.
• Content marketing via blog [content hub]
• Social sharing
• Automated email marketing to encourage use of platform
• Email newsletter to engage through advice shared
2. How has Buffer used social media and content marketing to grow the business?
Recommend students review Buffer’s social media accounts and blog to see the type of
content they share as part of their content strategy. Examples include:
• Trends in social media marketing
• Advice on social media marketing
• Advice for entrepreneurs by sharing Buffer’s story
Exercises
1. Why are digital platforms so suitable for relationship marketing?
Digital platforms give a suitable method for collecting individual customer preferences and
delivering tailored information for each customer. This is based on the principles of
permission marketing and content marketing that are based on a value exchange. Digital
media also lead to amplification or ‘viral sharing’ of content. Email also provides a two-way
method of interaction between the company and customer.
2. Explain ‘personalisation’ in a digital marketing context.
Personalisation is the delivery of information that is specific to an individual or group of

similar individuals. This could be information about a specific product range or information
for smaller customers. It can be delivered through specific web pages, mobile apps or through
personalised email. It can be based on ‘collaborative filtering’, where preferences of a group
of customers influence the content delivered. Predictive analytics is used to show the most
relevant content to influence future behaviour based on past behaviour.
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3. What is meant by ‘customer profiling’?
The use of the website to find out the customer’s specific interests and characteristics is ‘customer
profiling’. It can be used for market segmentation and tailoring of communications.
4. What are the options for using Artificial Intelligence to improve marketing
communications?
AI performs tasks which previously required human intervention, interaction and analysis. As a
result, AI expands the scope of marketing in terms of productivities, cost efficiency, expansion of
services, etc. AI can be used to generate content, curate content, provide voice interaction and
voice activated search; it can perform predictive analytics. Machine learning algorithms can sort
vast stores of information to find out which are the best performing adverts and so produce highly
targeted adverts. AI can facilitate dynamic pricing, personalisation, chatbots etc. The scope to use
AI for marketing is significant.
5. How can customer concerns about privacy be responded to when conducting one-
to-one marketing using digital communications?
Customers should be reassured about the privacy of their data. The key is openness.
Companies should do the following:
• Send promotional email or pass on details to other companies, only if they opt-in to
this arrangement.
• Allow customers to access their data if required (one of the provisions of the Data
Protection Act).
• Explain why information is collected and how it will benefit the customer.
• Clearly describe techniques such as cookies that affect privacy.
6. Choose an e-commerce sector, e.g. retail, travel, financial services and explain
why different types of automated contact strategies are important.
Contact strategies vary depending on the sector, size and scale of an operation. Figure 6.11
on page 259 and Table 6.1 on page 250 give details of options for a retailer and highlight the
touch points a customer might encounter. The aim of this question is to consider how digital
touch points vary by sector.
7. Explain the concept and applications of RFM analysis to different types of web
presence.
RFM is sometimes known as FRAC, which stands for Frequency, Recency, Amount
(obviously equivalent to monetary value) and Category (types of product purchased – not
included within RFM).
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For retailing, which is the main application of RFM, customers can be targeted through
personalised email or website messages according to their level of activity, for example,
active and dormant.
For other types of companies, RFM can be used to assess activity levels when customers log
in to a secure service such as an extranet.
8. Explain the concept and applications of lifetime value analysis.
LTV is used to review the past or future value of different customer groups based on their
contribution to profit over time due to repeat purchases and advocacy, taking into account
changes in monetary value through time due to inflation. Its most important role is
determining how much can be invested in customer acquisition. It can also be used to assess
return-on-investment for marketing campaigns and development of new services aimed at
increasing customer loyalty (e.g. a loyalty programme or customer community).
1. Explain the factors that influence the development of multichannel customer

contact strategies.
This question is about Integrated Marketing Communications. It relates to both inbound

customer service contacts and outbound communications to nurture and encourage purchase.
Offering choice of channel is important to each.
For inbound customer service, key issues with managing digital enquiries are to balance the
following:
• Customer service and customer satisfaction levels.
• Cost – lower for shorter resolutions and contacts that don’t repeat.
• Conversion – may be higher for personal channels rather than web self-service.
For outbound contact strategies:
• Planning automated contact strategies based on interactions and interests evident from
data
• Frequency of interaction
• Integration with messages across different channels.
2. Explain how customer lifetime value analysis can be applied to improve all aspects
of the customer lifecycle.
This answer should start with an introduction to customer LTV analysis based on Activity 6.1.
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It should explain how effectiveness of these tactics can be tested:
• Acquisition media can be assessed to see which media have best retention.
• Onboarding new customers can be assessed for how this impacts retention.
• Ongoing outbound communications, e.g. via email can be used to assess impact on
retention.
• Digital experiences used to deliver customer service and provide value.
3. Explore the options, success factors and barriers to delivering AI and Big Data
applications for marketing.
Artificial Intelligence (AI). Benefits of AI:
AI performs tasks which previously required human intervention, interaction and analysis.
As a result, AI expands the scope of marketing in terms of productivities, cost efficiency,
expansion of services, etc. AI can be used to generate content, curate content, provide voice
interaction and voice activated search; it can perform predictive analytics. Machine learning
algorithms can sort vast stores of information to find out which are the best performing
adverts and so produce highly targeted adverts. AI can facilitate dynamic pricing,
personalisation, chatbots, etc. The scope to use AI for marketing is significant.
Challenges: practical challenges, as it requires significant investment to set up AI systems,

data sets must be sufficiently large and comprehensive to enable learning to occur. High cost
investment required. Skills shortage – finding suitably qualified staff who can design,
implement and manage an AI system that will perform to required standards, setting
appropriate standards/outcomes and goals can also be challenging.
Benefits of big data: identifying insights, trends and patterns through analysis of complex
and interrelated data sets. Identifying success factors to make marketing communications
more relevant. These ideas should be explored in conjunction with illustrative examples.
Challenges of big data: There are three dimensions to consider: (1) data volume, (2) data
velocity and (3) data variety.
The key question for marketers to consider is how to harness new data sources and increase
the relevance of communications.
4. Explore the legal and ethical constraints on implementing relationship marketing

using digital media.
Some of the issues that should be discussed are as follows:
• Privacy – use of opt-in, opt-out and cookies, selling of customer information to other
companies.
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• Legal issues – involving use of data and email under relevant jurisdictions, e.g, the
United Kingdom and European data protection and privacy laws.
• The neutrality of organisations offering to protect the consumer, such as TRUSTe and
Which? raises questions about the extent to which they are seeking to protect the
consumer. Trustpilot, Tripadvisor and other feedback platforms bring together customer
reviews and is free to use but the opinions offered must be considered in light of the
source of the message and the types of products and experiences being reviewed. The
extent of ethical protection varies and is open to interpretation.
• If customers are encouraged to opt-in, such as on the www.tesco.com site, then there will
be more opportunities to communicate with them.
5. Explore opportunities and methods for personalising an interactive web session

and adding value for that individual customer.
Specific content, products and offers can be recommended within panels. For some products
and services such as car configurators and personalised products can be selected.
Personalisation is covered more in Chapter 7.
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Part 3
Digital marketing: implementation and practice
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CHAPTER 7
Delivering the digital customer experience

Delivering the digital customer experience is a complex, challenging and rewarding activity
for marketing managers.
Notes on using slides for seventh chapter in lectures – lesson plan
1. Learning objectives and topics (Slide 7.2 and 7.3)
• Describe the different stages and processes needed to create an effective website, mobile
app or social media presence and to optimise its performance
- Planning website, app design and redesign projects
- Initiation of a digital experience project (including domain registration; hosting;

performance and availability)
• Define the success factors that contribute to an effective digital experience delivered as
a website, mobile app or, where relevant, in-store, virtual or augmented reality
- Defining site or app requirements (including usability, accessibility, personalisation

and cultural customisation)
- Designing the information architecture
- Designing the user experience
- Mobile design requirements and techniques
- The Internet of Things
- Virtual reality and augmented reality
- Online retail merchandising
- Evaluating the impact of service quality on e-loyalty
The evolution of digital experiences (Slide 7.31, Figure 7.11). Although

presented part way through the chapter, this new figure is a useful introductory
visual.
2. Slide 7.4 is a quote showing the business requirements for a customer-centred

approach.
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3. The online customer experience pyramid (Slide 7.5, Figure 7.1). A summary of the
requirements from a customer point-of-view based on de Chernatony (2001).
4. Online brand equity evaluation by Christodoulides et al. (2006). Slides 7.6 and 7.7.
Ask students how might these differ today? This evaluation seems to ‘stand the test of
time’ well. However, providing the option to feedback via reviews and ratings could be
highlighted more.
5. Planning websites, app design and redesign projects. Slide 7.8 introduces the main
development tasks and Slide 7.9 shows them visually in Figure 7.2.
6. Who should be involved in a digital experience project? Slide 7.10 lists who might be
involved with a website project, this list should be discussed to consider the different
roles and insight people can bring to the project.
7. Example of a website project timeline (Slide 7.11, Figure 7.3). A classic example of
a Gantt chart.
8. Typical website prototyping approach (Slide 7.12, Figure 7.4). This approach is for
large sites where changes must be tested with a subset of the audience before rolling out
to everyone.
9. Initiation of a digital project (Slide 7.13). A summary of factors to consider.
10. Usability. Slides 7.14 and 7.15 define usability, Slide 7.16 summarises requirements and
Slide 7.17 and 7.18 explain Top Tasks.
11. Accessibility. Slides 7.19 and 7.20 define this.
12. Responsive website design. Slide 7.21 (Figure 7.5) gives one example. Can demonstrate
for any site by varying the viewport dimensions (shrinking the window via mouse). This
can be used alongside Figure 7.12.
13. Personalisation options. Slide 7.23 shows Figure 7.7. It is important to consider
requirements for personalisation and how levels of personalisation fit with digital strategies.
The pyramid shows 3 levels: Optimisation using AB testing; Segmentation using rules based
on targeting; 1:1 Personalisation.
14. Slide 7.22 shows the Jack Wills store in Figure 7.6. Unfortunately this doesn’t show
personalisation impact. Is simply the home page for context.
15. Translation options. Slide 7.24 shows Figure 7.8 and should be considered with Table 7.2.
Scalable translation drivers and challenges, which summarises how different translation
options form a continuum based on resource constraints. This slide should be considered as
part of the discussion of local and cultural customisation. It is important to consider
appropriate levels, which can achieve set marketing goals.
16. Information architecture. Slide 7.25 defines this.
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17. Blueprint example. Slide 7.26 shows Figure 7.9 which can be used to highlight the
architecture of a website. This figure is a blueprint for a website design and shows layout
and relationships with various elements of the site. Blueprints are often referred to as site
maps or site structure.
18. Example of a wireframe for a children’s toy website. Slide 7.27 shows Figure 7.10.
Useful to distinguish between a blueprint and a wireframe. The blueprint is a design tool
whereas the wireframe is what a web designer uses to develop the actual layout of a
website.
19. Landing page requirements (Slides 7.28 to 7.30). These be interactively reviewed with
students by considering a classic landing page perhaps accessed via a Google Search.
20. The evolution of digital experiences (Slide 7.31, Figure 7.11). Although presented part
way through the chapter, this new figure would be a useful introductory visual.
21. Responsive web design (RWD). Slide 7.32, Figure 7.12 explains how content is rearranged
depending on screen resolution and dimensions. Can demonstrate for any RWD site by
varying the viewport dimensions (shrinking the window via mouse). Table 7.3 in Slide 7.33
summarises other options.
22. Virtual reality and AR. Slides 7.34 and 7.35 can be used to introduce these. Zappar can
be shown to students for case studies of AR in different sectors.
23. Defining site or app requirements. Slide 7.36 summarises some of the techniques
considered in this chapter.
24. Content mapping. Table 7.4, Slide 7.37 gives a tool for students to review content used
by B2C and B2B organisations.
25. Information processing. Slide 7.38, Table 7.5 presents Hofacker’s practical framework
for visual impact of promotional content on a site.
26. Online retail merchandising. Slide 7.39 shows important factors for retail
merchandising. Useful to discuss as many of the websites which students encounter are
likely to be consumer facing. Discuss the common approaches.
27. Faceted navigation. Slide 7.40, Figure 7.14 shows this (‘refine by’).
28. The impact of Service quality on e-loyalty. Applying service quality frameworks to
the web involves consideration of the topics highlighted on Slide 7.41.
29. The dimensions of Webqual. These also relate to brand equity frameworks introduced
at start of the chapter.
30. Online elements of service quality. Table 7.6 in Slide 7.44 summarises these.
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31. Case study: Refining the online customer experience at i-to-i.com. Slide 7.45
introduces i-to-i.com.
32. Case Study 7 and Slide 7.46 shows questions.
Activities
Activity 7.1: What can go wrong without a planned approach to website or app
design?
Purpose
To indicate potential problems to customers, partners and staff if the design of an online
presence is not carefully planned.
Activity
Make a list of the potential problems related to a poorly planned design that may be faced by
customers of an online retailer. Base your answer on problems you have experienced on a
web site that can be related to planning and implementation of site design.
The answers you identify all define the requirements for a new website design including
relevant content, acceptable performance that it renders correctly in browser and searchable
within search engines (search engine optimization or (SEO).
To answer this question, you should think back to your experience of purchasing a book or
other products online. Alternatively, visit a site and go through the different stages. Write
down your expectations of service quality from when you first arrive on the website until the
product is delivered. There should be around ten different stages.
Our expectations are informed by our peers and past experiences. So, when we shop online,
we expect, or indeed demand, that the experience will be superior to traditional shopping. The
list of requirements is long.
1. Easy to find what you are looking for by searching or browsing.
2. Site easy to use, pages fast to download, with no bugs (on both smartphone and desktop).
3. Price, product specification and availability information on site to be competitive and

correct, but we probably prefer great customer services to great prices – this is what will
keep us loyal.
4. Specification of date, time and delivery to be possible.
5. Email notification when order placed and then dispatched.
6. Personal data remains personal, and privacy and security are not compromised.
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7. Verification for high-value orders.
8. Delivery on time.
9. Returns policy enabling straightforward return or replacement.
10. Finally, quick online or offline answers to questions when the above expectations are
not met.
11. This means traceability through databases, someone who knows your order status and
can solve your problems.
Activity 7.2: Options for outsourcing different digital marketing activities
Purpose
To highlight the outsourcing available for digital marketing and to gain an appreciation of how
to choose suppliers.
Activity
A B2C company is trying to decide which of its e-business activities it should outsource.
Select a single supplier that you think can best deliver each of these services indicated in
Table 7.1. Justify your decision.
Answer
1. Strategy. Best conducted in-house since there is a detailed knowledge of the product and
market. However, if new media skills are not available, it may be better to consult a
digital media agency or management consultancy (preferable option shown).
2. Design. Call in the experts (the digital media agency) for whom this is their core skill.
3. Content development. Although the initial site may be outsourced, ideally to a digital
media agency, most companies bring this function in-house since it is key to communicate
benefits to customers.
4. Online promotion. Online promotion, for example, banner advertising and search engine
registration (Chapter 8) is frequently outsourced to a new media agency since in-house
skills are unlikely to exist and techniques for both of these aspects vary greatly.
5. Offline promotion. Offline promotion, for example, print advertising and direct marketing
is frequently outsourced to a traditional marketing agency.
6. Infrastructure. This is usually managed by a combination of the IT department and an ISP.
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Table 7.1 Options for outsourcing different digital marketing activities
E-marketing function Traditional Digital Traditional IT Management

marketing marketing supplier consultants
agency agency
1 Strategy
2 Design
3 Content and
service
development
4 Online promotion
5 Offline promotion
6 Infrastructure
Activity 7.3 How do brands engage audiences with AR applications?
Review the examples described by Zappar below and write a summary of how brands can
integrate AR into campaigns with different types of audiences and goals.
Recommend students visit www.zappar.com/showcase to review these.
Mini case studies
Mini case study 7.1 Metro Bank transforms digital customer experience with a
revamped, responsive website.
This mini case study explores the use of responsive websites and apps for the launch of a
new high street bank.
Mini case study 7.2 Beachbody on Demand’s app rating improved by over two points
This case study shows how usability research can improve the customer experience and so
improve ratings giving social proof.
Mini case study 7.3 Optimax
This mini case study explores how Optimax has combined different marketing communications
executions on its home page to achieve different goals.
Mini case study 7.4 How a retail brand ran a personalisation programme to improve
engagement
This mini case study explores Jack Wills’ website and how the brand is using personalisation.
Mini case study 7.5 Diageo Brasil send personalised messages via loT-enabled whisky.
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This mini case highlights a personalised campaign online in the drinks industry.
Exercises
1. Explain the term ‘prototyping’ in relation to website creation.
The production of a trial version to test the website concept either internally or preferably with
a customer.
2. What tasks should managers undertake during initiation of a new web page?
Managers should ensure the following:
• Analysis/market research is conducted in a structured way – ask the audience.
• Domain name is registered ASAP.
• Review/assemble suitable suppliers and partners such as ISP, design agency.
• Suitable process for developing site involving a prototype and testing.
• Cost/benefit to set investment at right level.
• Buy in from senior management team and staff.
• Plan for online and offline promotion.
• Process for dealing with web-related enquiries or orders.
• Internet marketing plan (Chapter 4) highlighting all these issues.
3. What factors should be considered for domain name registration?
Choosing a domain name is a fairly simple decision but should align with the brand, its
values and mission.
4. List the factors that determine website ‘flow’.
Navigation is dependent on the following:
• Consistency
• Simplicity
• Context
• Interactivity.
To give users ‘control’.
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5. Which requirements are important for an effective website?
The requirements for an effective website are summarised by the WEBQUAL framework
and the elements of service quality including tangibles, reliability, responsiveness, assurance
and empathy.
6. List the options for assessing online service quality.
The elements of online service quality in Table 7.5 are also relevant here.
7. Which issues should be considered when developing a content strategy?
These include the following:
• Content value for different target audiences – to attract visits and sharing.
• Content media, including repurposing of content for different needs.
• Content syndication, including outreach to promote.
• Content participation – encouraging interaction and sharing.
• Content access platform, including desktop and mobile access.
8. What are the factors that control the performance of a website?
These can be divided as follows:
• Server hardware. Shared or dedicated hosting. Speed of hard or solid state disk, amount of
memory.
• Network. Location of server relative to where content is accessed.
• Software. Use of caching plugin and/or content distribution network. Type of hosting
operating system.
• On website web page design. Overuse of unoptimised code or graphics can reduce
download time for a site.
1. Discuss the relative effectiveness of the different methods of assessing the

customers’ needs from a website.
• Based on internal staff’s knowledge of market needs.
• Questionnaires (without reference to site).
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• Questionnaires (with reference to existing site or prototype).
• Focus groups (with reference to own site or competitor sites).
• Piloting (paper and real prototypes) with key accounts (useful for business-to-business
sites).
2. Select three websites of your choice and compare their design effectiveness. You
should describe design features such as navigation, structure and graphics.
Students should be advised to choose examples from within a single industry or a particular
type of website such as portals. Questions can also be phrased to add marketing effectiveness.
3. Explain how strategy, analysis, design and implementation of a website or mobile

app should be integrated through a prototyping approach. Describe the merits and
problems of the prototyping approach.
This is a straightforward question describing the project management of the creation of a

website. The beginning of Chapter 7 provides a framework for this.
4. When designing the interactive services of a website what steps should the designer
take to provide a quality service to customers?
Students should consider different aspects of service quality identified by Parasuraman et al.
such as the following:
• Reliability. The ability to perform the service dependably and accurately.
• Responsiveness. A willingness to help customers and provide prompt service.
• Assurance. The knowledge and courtesy of employees and their ability to convey trust
and confidence.
• Tangibles. The physical appearance of facilities and communications.
• Empathy. Providing caring, individualised attention.
5. How can customer analysis be used to develop a more effective online service?
Focus groups can be used to comment on existing or prototype versions of websites of a

company or its competitors. They can be used to assess issues such as the following:
• Relevance of online information, value of online services.
• Integration with offline products and services.
• Ease of use.
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• Visual appeal.
• Impact on existing brand values.
Other forms of feedback listed at http://bit.ly/smartfeedback can also be used.
6. Name, and briefly explain, four characteristics of an online service or brand that
will govern whether a user recommends it.
The content elements of an effective service include:
• Relevant (for a range of audience types).
• Accurate.
• Up-to-date.
• Delivered rapidly.
• Clear (laid-out clearly on screen).
The experience element depends on the following: Findability (browse and search
modes). Performance (site speed and availability).
7. What are the constraints on web service design depending on the technology
platform the service is accessed on?
• Different versions of web browsers may display information differently.
• Different screen resolutions (especially desktop and mobile) may display information
differently.
• Users may select different text size options.
• Users may decide to switch off graphical images.
• With digital TV and WAP phones becoming more common, these platforms must also
be allowed for.
Case Study 7: Refining the online customer experience at i-to-i.com
Questions
1. Select one country that i-to-i operates in, closest to the area where you live. Define a
persona based on their age and product needs and then identify the main customer
journeys and content requirements for this persona. Which routes through the site
would this user follow?
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Answers to this question will vary depending on the choice of country and profile of the
customer but should include:
Choice of country, e.g. UK, USA, France, Germany, Australia
Definition of customer persona – As explained in Chapter 2, should include relevant

demographic, psychographic and behavioural variables and should also consider level of
digital skills.
Customer journeys may relate to the stages in the buying process and where and when
the individual may encounter i-to-i.
Content requirements – depending on the chosen persona the content requirement will vary.
2. Review the range of engagement and reassurance devices on the i-to-i website to
engage the audience to generate leads.
Engagement devices that are examples of content marketing to encourage signup include
the following:
• TEFL taster – quiz questions and answers to gain an idea of the experience.
• Ebooks – advice on teaching TEFL.
• Brochure.
• Example courses.
3. Identify key areas for improvement for i-to-i based on your use of the site.
Use a suitable framework such as WEBQUAL or RACE (Chapter 1) to review and

make recommendations.
For example, a 17-year-old gap year student in Australia who is looking to teach in China.
Which browse and search navigation options would this site user follow to find relevant
products?
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CHAPTER 8
Campaign planning for digital media

Recommendations on how to structure a plan for online elements of a marketing campaign

to integrate with offline campaign elements.
Notes on using slides for eighth chapter in lectures – lesson plan
1. Learning objectives. Slides 8.2 and 8.3 highlight the key topics for this session.
• Articulate the differences between digital and traditional media and the implications for
planning campaigns
- The characteristics of digital media
• Use forecasting, evaluation and marketing insight to inform campaigns
- Step 1. Goal setting and tracking for interactive marketing communications
- Step 2. Campaign insight
• Review the options for segmentation and targeting and campaign engagement provided
in different channels
- Step 3. Segmentation and targeting
- Step 4. Big idea, offer, message development and creative
• Consider how to select the most effective digital media and plan them as part of an
integrated campaign
- Step 5. Budgeting and selecting the digital media mix
- Step 6. Integration into overall media schedule or plan
2. Characteristics of digital media. Slides 8.4 and 8.5 (Table 8.1) highlight key differences
between new media and traditional media. It is useful to establish the unique features of digital
media before looking at the specifics of digital campaign planning. One-to-many and one-to-one
communications are summarised visually on Figure 8.1 on Slide 8.6 and the communications
model by Schramm presented as Figure 8.2 on slide 8.7. These figures can be used to highlight
the changes taking place in the communications environment. Other slides for this chapter cover
the steps in digital goal setting and campaign planning.
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3. Step 1. Goal setting and tracking. Slide 8.8 (Table 8.2) distinguishes between brand-
building and direct response campaign types that form a continuum of goals for campaigns.
Can mention Binet and Field (2013) who have researched these types of campaigns.
Slide 8.9 (Figure 8.3) summarises key campaign terminology for setting and measuring digital
marketing goals as a ladder or how advanced they are. Can relate this to the VQVC mnemonic
explained in the text.
Examples of goals are given in Slide 8.10.
Figure 8.4 (Slide 8.11) places goals into the context of a campaign example and links to the RACE
framework. Figure 8.5 (Slide 8.12) shows conversion marketing approaches and relates to
objective setting in the RACE framework. Slide 8.13 (Figure 8.6) shows online campaign
response mechanisms and suggests typical condition option outcomes for online digital media
campaigns.
Slide 8.14 (Figure 8.7) gives an example of a landing page.
4. Step 2. Campaign Insight. This involves research into target audiences and how they select
products and services. This is critical for campaign planning. Slide 8.15 highlights key types
of insights to consider. Data sources for these have been covered in Chapter 2.
5. Step 3. Segmentation and targeting. Slide 8.16 (Table 8.3) shows a ‘range of targeting and
segmentation approaches for a digital campaign’. For further discussion, also see Chapters 2 and
4. Figure 8.8 The Content Distribution Matrix summarises different media targeting options and
how they can be assessed for effectiveness.
6. Step 4. Big idea, offer, message development and creative. Slide 8.18 explains different
elements of a ‘big idea’. Slide 8.14 (Figure 8.7) gives an example of effective online creative with
prominent proposition and calls-to-action. The content marketing matrix model (Slide 8.19,
Figure 8.9) gives an example of how the creative may vary according to campaign objectives and
shows the content marketing matrix, which is part of Activity 8.1.
7. Step 5. Budgeting and selecting the digital media mix. Slides 8.21 to 8.26 show different
approaches to budget setting for digital media. Slide 8.22 (Figure 8.10) gives options for online
vs offline communications. Slide 8.23 (Figure 8.11) gives recommendations for investment in
different types of media and how the mix might be varied for smaller and larger budgets. This
has implications for media buying and planning. Slide 8.24 (Figure 8.12) gives examples of
different referrers to a website from one prospect over time. It can be used to explain the need for
attribution.
Slide 8.25 (Figure 8.13) is an example of the referring mix for an airline. Slide 8.26 (Figure 8.15)
is a spreadsheet template showing a digital campaign budget. When discussing budgeting, it is
important to highlight 3 important decisions: (1) level of investment; (2) mix of investment in
digital media channels; (3) level of investment in digital assets.
8. Step 6. Integration into overall media schedule or plan. Slide 8.27 introduces the principles
of effective integrated marketing campaigns. Slide 8.28 (Figure 8.16).
Slide 8.29 introduces Case Study 8. Global Action Plan.
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Activities
Activity 8.1: Using the Content Marketing Matrix to audit and improve content
effectiveness.
We recommend the Content Marketing Matrix (Figure 8.9) as a useful technique to review current
use of different content formats and to identify new types of content that could be useful for a
business.
The matrix is structured to help you think through the dimensions of different content based on
how an audience could find content valuable and what you’re trying to achieve as a business.
Activity
Complete this process to review a company’s use of different types of content to support
marketing:
1. Review current use of content within a company through plotting different content types
on the grid.
2. Repeat this review for two to three competitors (direct or indirect), again plotting on the
grid.
3. Brainstorm future possible content types.
4. Define criteria for investing in content (e.g. generating reach, helping conversion,
existing customers).
5. Use your criteria from Step 4 to prioritise the two or three types of content needed to trial
in content campaigns.
Answers to this activity will vary based on the selected company and in class discussions of
the different types of content, which may be considered by the businesses owning the website.
The purpose of the activity is for students to carry out desk research and evaluate the content
of the website and also consider the purpose of the particular content in relation to digital
marketing planning.
Activity 8.2: Frameworks for selecting media
Coulter and Starkis (2005) identified various factors when selecting media.
For each factor area (e.g. quality, time), suggest how each factor can be applied when
selecting digital media and what key considerations you should make.
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Quality
1. Attention-getting capability (Attention) – ability of an ad placed in this specific media

to ‘grab the customer’s attention’ due to the nature of that media.
2. Stimulating emotions (Stimulation) – ability of an ad placed in this specific media to

convey emotional content and/or elicit emotional responses.
3. Information content and detail (Content) – ability of an ad placed in this specific media
to convey a large amount of information and/or product description.
4. Credibility/prestige/image (Credibility) – ability of a specific media to lend prestige

to a product through association (i.e. because that product is advertised within the media).
5. Clutter – degree to which it is difficult for a product advertised within a specific media
to ‘stand out’ due to the large number of competitive offerings/messages.
Time
1. Short lead time – degree to which an ad can be created and/or placed within a specific
media in a relatively short period of time.
2. Long exposure time – degree to which the communication recipient is able to examine
the advertising message within a specific media for an extended period of time.
Flexibility
1. Appeal to multiple senses (Appeal) – degree to which an ad placed within this specific
media can communicate via sight, sound, taste, touch and/or smell concurrently.
2. Personalisation – degree to which an advertising message placed within this specific

media can be customised in order to target a specific individual or group of individuals.
3. Interactivity – degree to which the customer can respond to information conveyed in

an advertisement placed within this specific media.
Coverage
1. Selectivity – degree to which an ad placed within this specific media is able to target a
specific group of people.
2. Pass-along audience (Pass along) – degree to which an ad placed within this specific
media is seen by those other than the original message recipient.
3. Frequency/Repeat exposure (Frequency) – degree to which any single ad placed within

this specific media may be seen by any one particular individual on more than one
occasion.
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4. Average media reach (Reach) – degree to which an ad placed within this specific media
reaches a relatively wide audience.
Cost
1. Development/production cost (Development cost) – relative cost of developing or

producing an ad for this specific media.
2. Average media delivery cost (Delivery cost) – average cost-per-thousand associated with
this specific media.
The relative importance of these characteristics and the investment in different digital media
will be dependent on the product and the type of campaign – whether it is direct-response-
orientated or brand-orientated – and the scale of the budget.
This activity prompts students to consider how each of the elements of the framework for
selecting media can be applied.
Activity 8.3: Creating a digital campaign budget
Purpose
To illustrate the type of budget created internally or by digital marketing agencies. Figure
8.15 shows an extract.
Activity
Download the spreadsheet from https://www.davechaffey.com/spreadsheet to understand

how the different calculations relate to each other. Try changing the cost of media (blue cells)
and different click-through rates (blue cells) for which typical values are shown for a
competitive retail product. View the formulas to see how the calculations are made.
How would you make this model more accurate (i.e. how would you break down each digital
media channel further)?
Answer
1. Offline outcomes can be considered (e.g. phone calls).
2. The model is based on last-click attribution. It could be modelled across media.
3. Lifetime value could be considered rather than the value from first sale.
4. Digital media channels such as search marketing, online advertising and partners could
be broken down further to show particular types of sites or significant individual sites. This
may require some reference to relevant parts of Chapter 9.
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Mini case studies
Mini case study 8.1 Glenigan increases digital ad efficiency through insight and targeting
This mini case study shows how Google ads can be optimised through better targeting in a
B2B context.
Mini case study 8.2 #MorningWin: the belVita big idea
This mini case study gives an example of a ‘big idea’ to support a consumer brand campaign.
Case Study 8 Global Action Plan: campaigning for a better world
1. Which techniques does GAP use to ensure the consistency and effectiveness of its
campaign communications?
GAP has two building blocks around which all campaigns are devised which are broader
themes. They also use brand guidance.
2. How does GAP encourage change through seeking to influence different types of
stakeholders?
The examples show how people can be influenced through local events arranged through
education and local governments.
3. Using the example of the Clean Air Day, #Idontbuyit, Cycle 21 or other campaigns,
assess the media mix used to reach and influence audiences and how their
effectiveness is assessed.
The case study gives examples of measures such as:
• Number of media impressions
• Coverage by different media
• Website visitors
• Number of events and number of attendees
Exercises
1. Review the reasons why continuous marketing activity involving certain digital
media channels is preferable to more traditional burst or campaign-based activity.
Digital media gives potential to reach audience members at the key point in buying cycle
when they are actively seeking and reviewing products. This reduces wastage familiar from
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traditional media when ads are displayed when the audience is not receptive. This is
particularly relevant for these digital media channels:
• Search engine marketing. Can target audience dependent on searches they perform.
• Email marketing. Can follow up on-site visit and interest in product with email campaign.
• Behavioural targeting through online advertising. Can follow up ads for those who
have clicked through.
2. Describe the unique characteristics of digital media in contrast to traditional media.
In this chapter, the differences referred to at the start of the chapter are as follows:
• From push to pull.
• From monologue to dialogue.
• From one-to-many to one-to-some and one-to-one.
• From one-to-many to many-to-many.
• From lean-back to lean-forward.
• Changes in nature of marketing communications.
• Increase in communication intermediaries.
Table 8.1 also provides a summary.
3. Review the options for targeting particular audience groups online with different
digital media.
Table 8.3 provides one approach to this answer looking at the potential contribution of
different forms of marketing communications. An alternative approach is to break down by
media channel:
• Paid search. According to keywords entered.
• Online advertising. According to demographic profile of sites used.
• Email marketing. All approaches in Table 8.3 are possible.
• Social media marketing. Paid ad targeting based on demographics of people and their
affinity with others online.
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4. How should a company decide on the relative investment between digital media
and traditional media in a marketing campaign?
The answer is to refer the difference in balance of investment between investment according
to campaign goals and type, that is, brand campaign and direct response campaign as
suggested by Figure 8.16 on page 386. Offline investment in advertising will tend to be
higher when generating awareness.
For a direct response campaign, the cost-of-acquisition of customers influenced online and
offline should be considered.
Econometric modelling is another approach to assess relative investment mentioned in the

text that can be referenced.
5. What are the options for integrating different types of digital media channels with
traditional media?
Customer journeys should be controlled as they switch between traditional channels and
digital channels.
• Offline to online. Through prompting with phone numbers and providing chat options.
• Online to offline. Providing clear web addresses and value propositions encouraging
visitors to the site.
6. What are the issues that a marketer should consider when defining their offer and
message for an online campaign?
• Identification of primary offer and secondary offer.
• Reasons to click-through to website.
• Prominence of call-to-action within creative format.
1. Outline the range of goals that should be used to define success criteria for an
online marketing campaign.
Students should select an appropriate framework(s) for goal setting, for example:
• 5Ss – Sell, Serve, Speak, Save and Sizzle.
• Visitor volume, quality, cost measures and sophistication of campaign (illustrated in

Figure 8.3).
2. Discuss the options a business-to-business company could use for targeting an

audience through social media.
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See Table 8.2 for targeting and segmentation approaches. Also refer to Figure 6.2 page 237.
The social marketing radar to consider which types of social media platforms might be most
appropriate. Issues to consider are as follows:
• Relationship with company – prospect or customer – this will help to define the
objectives for social media campaigns
• Demographic segmentation, that is, company size, sector and individual members of
buying unit.
• Psychographic profile of individual decision maker.
• Lifecycle stage.
• Behaviour – response to other digital media promotions
3. Assess why integration between online and traditional media will make a
campaign more effective overall.
When assessing the effectiveness of integration, it is important to determine the level. The IPA
(2011) suggested four levels of integration:
1. No integration
2. Advertising led integration
3. Brand-idea-led orchestration
4. Participation led orchestration.
This research also found that multichannel campaigns are better for driving effectiveness
than single channel activity.
It is also important to consider the following for both online and traditional media to
determine the scope for an online/offline integration to deliver more effective campaigns:
• Consistency of branding
• Variation of the offer
• Frequency (number) and interval of communications
• Sequencing of communications
• Optimizing timing.
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4. Describe different options for testing the effectiveness of competing offers online.
Offer effectiveness online can be reviewed through the following:
1. Click-through rate to the offer from the pages; it is shown by web analytics.
2. Amount of sharing of the offer through social media.
3. Redemption rates of offer.
4. AB or multivariate testing of offers (serving different offers to different people to see

which is most popular).
5. Evaluate the potential value of incorporating a mobile ‘text to win’ promotion into
an offline campaign.
• Increase in communications intermediaries.
• Usage of mobile among audience.
• Anticipated response rate given offer.
• Fit with brand.
6. How should businesses gain the correct balance of investment in always-on customer
lifecycle communications and campaign-based communications?
The answer should start by contrasting the two forms of investment. The use of conversion based
models can be used to assess the media costs and returns for both campaign and always-on
activities needed to meet their goals. Each campaign should have a forecast based on anticipated
media costs and response rates. Likewise, there should be a monthly always-on budget.
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CHAPTER 9
Marketing communications using digital media

channels
A review of the relevance and success factors for different online communications tools.
Notes on using slides for ninth chapter in lectures – lesson plan
1. Marketing Communications using digital media channels. Slides 9.2 and 9.3 show the
learning objectives and key content to be covered in this session.
• Distinguish between the different types of digital media channels and understand
practical success factors to make them effective
• Evaluate the advantages and disadvantages of each digital media channel for marketing
communications
• Assess the suitability of different types of digital media for different purposes
The chapter is structured by reviewing these channels:
• Search engine marketing (organic search and paid search)
• Digital public relations and influencer relationship management
• Digital partnerships including affiliate marketing
• Digital display advertising
• Digital messaging including email marketing and mobile messaging
• Social media and viral marketing
• Offline promotion techniques
Introduction. Structured around six key digital media channels introduced in Chapter 1 (Slide 9.4,
Figure 1.11) and Slides 9.5 and 9.6 (Table 9.1).
Can ask students for their ideas or explanations for the main communication techniques for
digital marketing.
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Can discuss with students which they think would be most effective for a retailer. It’s likely
that social media marketing is less important than expected. Show Slide 9.7 (Figure 9.1) to
explain this.
2. Search engine optimization (SEO). Slides 9.8 to 9.19.
• Advantages and disavantages – Slide 9.8.
• Two types of search engine marketing - shown on SERPs – Slide 9.9 (Figure 9.2). Ask
students which is which.
• SERPs features – Slide 9.10 (Figure 9.3)
• Click through rates and linked to natural search listing position – Slide 9.11 (Figure 9.4)
• Stages involved in producing search engine natural listings – Slides 9.12 and 9.13 (Figure 9.5).
• Slide 9.14 lists success factors for SEO. When discussing search engine marketing, it is
important for students to be aware of the factors that affect rankings. Showing students the main
ranking factors can help show the complexity: https://backlinko.com/google-ranking-factors
3. Paid search marketing. Slide 9.15 shows the advantages and disadvantages of paid search
by Google Ads and Microsoft Bing. Slide 9.16 (Table 9.2) shows the cost of advertising with
Google Ads. Slide 9.17 shows Figure 9.7 Google Ads campaign structure for a clothing
retailer and a restaurant chain. Campaign structure is important to ensure that search
campaigns use appropriate trigger terms, which relate specifically to stages of the campaign
and their target markets.
4. Online influencers and influencer relationship management. Slides 9.18 and 9.19
introduce online PR. Slide 9.20 (Figure 9.8) gives an example of a blog (content hub).
5. Online partnerships. Slide 9.21 explains affiliate marketing and Slide 9.22 (Figure 9.9)
visualises affiliate marketing.
6. Display advertising. Slide 9.24 (Figure 9.10) shows an ad buying ecosystem. Slide 9.25
discusses the advantages and disadvantages of display advertising. When discussing display
advertising, it is important to highlight that this involves advert placement on third party sites.
Slide 9.26 (Figure 9.11) explains how different forms of display advertising can support
lifecycle marketing goals. This can be used to explain retargeting which is also shown in
Slide 9.27 (Figure 9.12).
7. Opt-in email marketing and mobile messaging. Slides 9.28 and 9.29 explore email marketing
and the advantages and disadvantages of using this form of digital media. When discussing this
topic, it is important to establish that this is a ‘push media’ (along with mobile messaging) and that
it is a method of communication which can be very effective for relationship building and
nurturing (also discussed in more detail in Chapter 6).
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8. Social media and viral marketing. This is an important category of digital marketing (also
discussed in Chapter 6). Slides 9.30 to 9.32 introduce the concepts.
Case study: Smart Insights: how content strategy fuels inbound marketing to grow an
online B2B service
1. How do different measures of effectiveness show the most effective digital

communications channels for Smart Insights?
The measures show that organic search is the most important both by volume of visits and
fee and paid conversion. Direct traffic and referrals from other sites are next most important.
Email nurture is important in prompting paid membership conversions.
2. How does Smart Insights differentiate its proposition within a crowded

marketplace focusing on digital marketing skills development?
A focus on strategy, data-driven marketing and integrated communications rather than

channel tactics (although those are covered too). Rather than online learning only, templates
are also provided which are the basis for planning.
3. Organic search is the most important channel by volume – which factors have been
important in achieving and maintaining visibility for Smart Insights within Google?
These are mentioned:
• Keyword research
• Content strategy focusing on digital strategy, trends and digital marketing statistics
• Republishing high quality content to keep it up-to-date which is often linked to by other
sites
• Shareable content such as infographics shared by social media encourages return visits
and will encourage some site owners to generate backlinks from other sites.
Activities
Activity 9.1: The changing faces of the SERPs features
Search engine marketing tools service Moz has regularly updated research called MozCast,
which shows the popularity of different types of features within the search results pages for
the most popular queries.
Activity
Visit MozCast and review the latest SERPs features (Figure 9.3) so that you understand the
difference between them. Complete different navigational, generic (for example,
google.com/search?q=laser+eye+treatment) and specific searches for products in a sector of
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your choice and see how many of these you can identify. Are some companies better at
achieving visibility than others?
Answer
The MozCast tracks the SERPs features displayed by the Google algorithm by monitoring
1,000 key words. Search Engine Results Pages (SERPs) show more than simple organic
search results. Common features shown by the chart are Related Questions, Local Pack (i.e.
maps of suppliers registered with Google My Business), images and videos.
Activity 9.2: The essential ingredients of a viral social media campaign
With Facebook and Instagram having in excess of two billion users, there is good potential
for viral marketing for different types of organisations. This activity considers three
examples from very different types of businesses.
Questions
1. Which success factors do the three campaigns share in common?
They use humor and shock tactics and unexpected narratives to get attention and raise
awareness.
2. Discuss current campaigns that share similar success factors or use others.
Bud light slap campaign, Snickers Hungry Betty White campaign, Doritos Time machine
campaign.
3. What are the risks to different organisations like these that should be considered
when planning and executing these types of campaigns?
It is important to ensure that the campaigns are received as planned and that they don’t enrage
the target audience and cause a backlash of criticism.
The charity – MQ: It’s time to give a xxxx about mental illness campaign
This campaign from MQ Transforming Mental Health through Research focuses on mental
illness in young people and the wider population.
This campaign has a high-impact creative based on different ‘it’s time to change the facts’
messages, which encourage sharing by showing how this is a neglected illness, with 23 percent of
the population affected but less than 6 per cent of health research spent here, or how four-in-ten
people feel that mental illness is ‘an inevitable part of life’. The simple visuals and messages work
well but this campaign is integrated with powerful videos and commentary from indie bands.
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The brand – KFC Clean Eating Burger
The impact of this video campaign, created primarily for Facebook, was significant. It’s a
spoof that sends up health-food vloggers, featuring Figgy Poppleton-Rice – a fictional food
vlogger who ‘would literally marry kale’. She’s explaining a video recipe for the ‘Clean
Eating Burger’: a combination of raw cauliflower, pulsed ice, kale and boiled chicken, which
is crushed with the not-so-healthy Dirty Louisiana burger that KFC launched in the UK. Over
16 million views shows the power of viral videos that poke fun. Branded virals don’t always
link so well to a product, but this pulls it off.
The retailer – AO.com Bloodthirsty Gin Punch campaign
AO.com is a UK-based online retailer that sells white goods and other home electrical
equipment. AO gets a lot of engagement through simple ploys such as asking the audience
to get involved, whether it’s counting rubber ducks in a dishwasher, how many beers are in a
fridge-freezer or how many clothes fit into a washing machine. The Bloodthirsty Gin Punch
campaign piggybacked on Halloween and nicely integrated with its AO.Life blog. It’s been
widely shared since it’s just a bit edgy – the video features an eyeball-bearing punch and
spooky sounds, so not for the squeamish.
Exercises
1. Briefly explain and give examples of the main online promotion techniques.
Online promotion techniques (Table 9.5, which shows types including those below):
• Search engine marketing (paid and natural).
• Link building campaigns – referring links from related sites are also important in building
traffic to a site.
• Display advertising – used to drive traffic to sites by placing adverts on specific interest
sites or displaying adverts when particular keywords are entered. When users click on an
advertisement (a click-through), they are taken to a website with further information.
Banner advertising can also be used for other purposes such as brand building or offering
incentives. Banner adverts are usually paid for according to the cost per 1,000 people
viewing the advert (CPM).
• Affiliate marketing with partners (cost per acquisition).
• Advertising in email newsletters.
• Co-branding and sponsorship.
• Viral marketing and word-of-mouth marketing.
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Offline promotion techniques: Promoting the website address and highlighting the value
proposition of the website in the following:
• Company stationery and promotional literature.
• Traditional media adverts in print, or on TV.
• Through PR.
• Per exposure. Typically through advertisement impressions (CPM) or possibly through

the length of time, the user views an advertisement. May be per page, or for ‘run-of-site’.
• Per response. Payment only occurs according to the number of click-throughs that occur
– cost per click (CPC).
• Per action. This is payment according to a marketing outcome such as a download of a

product fact sheet, a new sales lead received when users fill in an online form giving their
name and address or an actual sale placed online – cost per action (CPA).
2. Explain the factors that control the position of a company’s products and services
in the organic and paid listings of a results page of a search engine such as Google.
This question requires separate treatment of ranking factors within the natural (on-page
optimisation, internal linking and external linking) and paid search results (maximum CPC
bid and quality score).
3. Compare the effectiveness of different methods of online advertising including

programmatic display advertisements, paid search marketing, paid social and
affiliate marketing.
The student should define effectiveness at the start of the question by referring to the ability
of the advertisement to inform, persuade, remind, build-brand or encourage action. These
need to be offset against the cost of placing the advert and the ease of finding a suitable online
location for its target audience. Figure 9.11 can be used to contrast the three advertising
techniques.
4. Explain how different forms of paid digital media can support advertiser goals.
Again Figure 9.11 can be used to explain these:
• Generate awareness and demand through display ads on publisher and social media sites.
• Advertise when consumers show interest in products through searching or because they
are shown to be ‘in-market’.
• Remind about a proposition through retargeting ads.
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5. Explain the value of different forms of social media marketing.
These apply across different social networks:
• Low-cost organic social which benefits from amplification when content is re-shared or
liked
• Paid social where audiences can be targeted based on their characteristics and behaviour.
• Social media listening where interests of audiences can be researched.
6. What are the options for using online PR to promote a new product?
As with traditional media, media mentions in online general and specialist newspapers and
magazines can assist. Creating buzz through comments by influencers in blogs and social
networks could help build interest and discussion about a product. This is related to viral
marketing.
7. How should companies evaluate the relevance and effectiveness of the digital
media channels discussed in this chapter for their organisation?
• Awareness – surveys showing increase in brand awareness and familiarity.
• Value – short-term sales and profit generated by channels assessed by analytics. (same
visit and attributed to previous visits or impression).
• Costs – Cost per click and cost per acquisition.
8. How can email marketing be used to support lifecycle marketing objectives?
Need to distinguish between acquisition and retention.
Customer acquisition:
• Ad in third-party e-newsletter.
• Building a permission-based house list to communicate to both prospects and customers.
• Automated nurture emails to retarget based on existing interest.
Customer retention:
• Customer newsletter
• Campaign ‘email shot’ targeted to an existing customer’s needs
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1. Give three examples of digital media channels and briefly explain their
communications benefits.
Can be any selection from Table 9.1. Benefits should consider:
• Reach
• Targeting by characteristic and intent
• Format to shape communications goals
• Cost
2. Describe four different types of sites on which online display advertising for a car
manufacturer’s site could be placed.
• General news site – targeted by any section or motoring section
• Car reviews publisher
• Car trading site
• Social media feed
3. Click-through is one measure of the effectiveness of online advertising. Answer

the following:
(a) What is ‘click-through’?
Each time a user clicks on an advert to take him through to a destination site.
(b) Which factors are important in determining the click-through rate of a display
advertisement?
The important factors are creative incentives, where placed (which site), when placed and
where placed (on site).
(c) Is click-through a good measure of the effectiveness of online advertising?
This depends on whether the main purpose of advertising is direct response or brand
advertising. For direct response, click-through is a useful measure, but better measures are
based on the resulting marketing outcomes such as leads or sales. For brand advertising to
increase awareness of brands and products, this can be assessed through surveys on brand
preference using measures such as brand awareness, familiarity, favourability and purchase
intent.
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4. What is meant by co-branding and co-marketing? Explain their relevance to

different types of business.
Co-branding is an arrangement between two or more companies, where they agree to jointly
display content and perform joint-promotion using brand logos or banner adverts. Its
significance is that it enables long-term relationships between complementary sites, which
are usually low-cost or reciprocal arrangements. It is a good method of providing relevant
content on a site without the cost of developing it.
Co-marketing is similar, but less tactical since it involves collaborating on marketing

activities to meet mutual goals. Co-branding may be part of co-marketing.
5. Facebook and Google dominate digital media investment in many countries and are
highly competitive. Discuss how businesses can plan media investment to achieve
their goals.
This relates back to controlling campaigns and activities based on relevant measures to
ensure profitable. For example:
• Allowable Cost Per Acquisition (Based on Cost per click and conversion rates)
• Lifetime Value (Repeat purchases increase the Cost Per Acquisition)
6. How can conversational and digital messaging be used to improve customer

acquisition and retention?
This relates to email marketing and mobile messaging through SMS and push notifications.
There are limited options for buying permission-based lists, so the permission marketing
model of building an in-house list based on value exchange can be followed as explained in
Chapter 6. This can help acquire new customers as they learn more about a brand, for
example, from newsletters or responding to promotions to drive sales. Targeted emails and
push notifications from apps can be used to encourage repeat purchase from customers.
7. Briefly evaluate the strengths and weaknesses of affiliate marketing for a retailer.
Select a retailer and then discuss:
Advantages:
• Can control costs through ‘pay per performance’ cost per acquisition model.
• Can reach wider audience through network of affiliates.
• Can target individual products through strengths of different affiliates.
• Can protect brand, for example, in search listings by displacing competitors.
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Disadvantages:
• It may be paying for some customers who are already familiar with offering (i.e. have
previously responded to an advertisement but affiliate is the last click before sale).
• Some level of affiliate fraud has been reported.
• A poorly selected affiliate can damage a brand.
8. How should a business decide on their social media investment priorities for organic
and paid social activities using different social networks?
This is based on research including:
• Using Analytics to assess which social networks currently contribute visits and sales to
increase focus on these.
• Review demographics and personas of different social networks. Which are the best fit
for the brand?
• Reviewing relative costs of social networks.
• Customer service should also be reviewed.
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CHAPTER 10
Evaluation and improvement of digital channel

performance
Covers performance management: measuring and improving the results from a website and
online marketing communications using analytics and selecting relevant KPIs.
Notes on using slides for tenth chapter in lectures – lesson plan
This session focuses on performance measurement for digital channels, plus content and site
management in relation to customer experiences. The aims of the session are to enable
students to understand the importance of monitoring and measurement and how to improve
the effectiveness of digital marketing.
1. Learning objectives. Slides 10.2 and 10.3:
• Understand the process, KPIs and tools used to measure and improve digital marketing
effectiveness
- Performance management for digital channels
• Review data within Google Analytics to identify performance and improvements
- Using Google Analytics to evaluate and improve digital marketing
• Identify the activities necessary when researching and managing digital activities and
content
- Marketing research using the internet and digital media
- Content management process
- Responsibilities for customer experience and site management
2. Performance measurement. Slide 10.4 summarises three stages of the performance

measurement process.
Slide 10.5 (Figure 10.1) suggests key questions a business needs to answer to make the most
of data-driven marketing.
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Slide 10.6 (Figure 10.2) shows the four stages in the measurement process and should be
used to highlight the importance of planning and monitoring.
Slide 10.7 (Figure 10.3) shows diagnostic categories for digital marketing measurement and
a framework of measures which can be applied.
Slide 10.8 (Figure 10.4) shows attrition through the shopping basket process and the need to
improve step conversion.
Slides 10.9 to 10.11 (Figure 10.5) and Activity 10.1 applies the principles of review to
Google Analytics.
Slide 10.12 (Figure 10.6) shows common measures for traffic volume. This is an example of
visitor volume over one month and shows the different rates based on real data.
Slide 10.13 (Figure 10.7) shows a framework for the evaluation and management of social
media marketing and is discussed in more detail in Digital marketing insight 10.1.
Slide 10.14 (Figure 10.8) shows an example output from Hootsuite.
Slides 10.15 (Figure 10.9) gives an example of how multivariate testing can be used to
improve the results from a website.
Slide 10.16 (Table 10.3) highlights some website standards.
Slides 10.17 (Figure 10.10) to 10.20 (Figure 10.11) highlight content management processes.
Case study: Learning from Amazon’s culture of metrics. Slide 10.21 introduces the case
study questions.
Case Study 10: Learning from Amazon’s culture of metrics
Questions
1. By referring to the case study, Amazon’s website for your country and your
experience of Amazon offline communications, evaluate how well Amazon
communicates its core proposition and promotional offers.
Worldwide, the proposition is summarised by the well-known brand identity, which features
‘from A to Z’ suggesting the range of products and breadth within categories. Amazon used
to refer to itself as the world’s largest bookstore.
In the article, the following sentence gives an idea of the different aspects of the custom
value proposition to watch out for.
‘It believes the main competitive factors in its market segments include ‘selection, price,
availability, convenience, information, discovery, brand recognition, personalised services,
accessibility, customer service, reliability, speed of fulfilment, ease of use and ability to adapt
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to changing conditions, as well as our customers’ overall experience and trust in transactions
with us and facilitated by us on behalf of third-party sellers’.
Googling Amazon will show the different propositions explained in your region. For Amazon
US, the proposition is clearest – the listing in Google states:
• Amazon.com Books: New and used textbooks, biographies, children’s online shopping from
the earth’s biggest selection of books, magazines, music, DVDs, videos, electronics,
computers, software, apparel and accessories, shoes and for books.
• Amazon.com: Online shopping for electronics, apparel, computers. Online shopping for
millions of new and used books on thousands of topics at everyday low prices.
The fulfilment proposition in different countries will revolve around the minimum order for free
delivery. Discounting for different books will also vary according to their popularity.
2. Using the case study, characterise Amazon’s approach to marketing communications.
Amazon’s marketing communications strategy aims to increase customer traffic to its websites;
create awareness, promote repeat purchases; develop incremental product and service revenue
and strengthen the Amazon.com brand names.
In this respect, Amazon’s approach is selective, using the techniques that are most cost-effective.
The other facet is the use of automation to enable specific advertising through the natural (SEO)
and paid listings of the search engines. Testing of the best approach is important to make these
ads work.
The communications approach is described in the extract towards the end of the case starting:
‘Online advertising techniques include paid search marketing, interactive ads on portals, email
campaigns and search engine optimisation’.
Amazon also seeks to develop partnerships through advertising with its contra-deals. The affiliate
and search engine marketing approaches are described earlier in the article.
3. Explain what distinguishes Amazon in its uses of technology for competitive

advantage.
The following are characteristic of Amazon’s use of technology:
• Use of in-house technologies for personalisation.
• Early adopter – rapid adoption of new techniques.
• Extensive testing and optimisation to find the best approach.
• Avoidance of monolithic projects, with focused teams tackling specific issues.
• Infrastructure scalable to deal with rapidly increasing demand.
• Approaches developed for one product must be extensible to others.
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4. How does the Amazon ‘culture of metrics’ differ from that in other organisations,
from your experience?
This question asks students to reflect on their own experiences. From the case, the following
are characteristic of Amazon’s approach:
• Passionately driven from the top by Jeff Bezos.
• Importance of metrics in governing all marketing and technology activities.
• Arguments about the best marketing approach are often based on tests rather than those
who shout the loudest: ‘Data trumps intuition’.
• Accepted wisdom is not accepted – tests are re-run since the approach may vary through
time.
Activities
Activity 10.1 Using Google Analytics reports to review marketing effectiveness
Purpose
To understand how insights are structured in different reports in Google Analytics so that
performance can be evaluated by asking the right questions. Examples of 10 different types
of questions are covered with follow-up questions in each of these categories.
Students should be instructed to access the Google Demo accounts to review a sample retail
site and then share their findings for improvement. Each student or group can be assigned
one or more questions.
Activity 10.2 Optimising a content review process
Purpose
To assess how quality control and efficiency can be balanced for revisions to web content.
Activity
Purpose
To assess how quality control and efficiency can be balanced for revisions to web content.
The extract below and Figure 10.11 illustrate a problem of updating encountered by this
company. How can they solve this problem?
118
Problem description
From the moment the brand manager identifies a need to update copy for their product the
update might happen as follows: brand manager writes the copy (half a day), one day later
the web manager reviews the copy. Three days later the marketing manager checks the copy,
seven days later the legal department checks the copy, two days later the revised copy is
implemented on the test site and two days later the brand manager reviews the test site. The
next day the web manager reviews the website, followed by updating and final review, before
the copy is added to the live site two days later – and over a fortnight from when a relatively
minor change to the site was identified!
This activity could be used to stimulate in-class discussion and lead to creative problem
solutions.
Answer to problem: In one word, the answer is empowerment. The only way to increase
the speed of the process is to involve fewer staff and this means training them in the skills
required for update.
In this case, the brand manager knows their product sector best, so they have to write the
copy and it is best if they have the sole responsibility for creation and review.
An additional check by the legal department may be necessary for certain types of changes.
Of course, they need to set up different reviewing processes according to the size of the
changes made.
A workflow system built into the content management system will also help remind staff at
the right time to review content and then update the status of the document for publishing.
Mini case study
Mini case study 10.1: Multivariate testing at National Express Group increases
conversion rates.
This mini case explores the use of multivariate testing and how it might be used to improve
conversion rates.
Mini case study 10.2: Prudential Singapore gains VoC feedback from its virtual
customer community
Exercises
1. Why are standards necessary for controlling website management? What aspects of
the site do standards seek to control?
Content quality will be poor without standards such as those shown in Table 10.3. Poor
quality may be manifested by:
119
• brand and corporate identity inconsistent across site or compared to other channels;
• inconsistent navigation making the site difficult to use;
• poor copy with grammatical errors; and
• broken links.
2. Explain the difference between hits and page impressions. How are these measured?
Page impressions (or more commonly, page views) are a more valuable indication of activity
on a site than hits, since hits are dependent on the number of graphical items that are
downloaded on each page. The values are measured in a ‘transaction log file’ on the web
server that is added to for every piece of information that is downloaded.
3. How should social media marketing effectiveness be assessed?
A. Reach. Amplification through viral effect of sharing.
B. Act. Companies can share content and offers via social networks that will help generate
awareness and then generate leads.
C. Convert. Reviews, recommendations and ratings can help encourage conversion.
D. Engage. Long-term engagement through social updates and further amplification.
Figure 10.7 shows an alternative framework for reviewing social media marketing
effectiveness including strategic, commercial measures at the top to tactical measures at the
bottom.
Social media effectiveness can be reviewed using the RACE framework, as discussed in the
previous chapter comments.
4. Why should content development be distributed through a large organisation?
By distributing content creation, the most knowledgeable people will be writing content.
Also by engaging expertise within the firm, errors in content should be avoided and content
providers should be more encouraged to take ownership and responsibility for their own content.
5. Describe the different types of measures that should be used to review and improve
digital marketing.
Students should cover different types of qualitative and quantitative measures:
• Awareness – surveys showing increase in brand awareness and familiarity.
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• Value – short-term sales and profit generated by channels assessed by analytics (same
visit and attributed to previous visits or impression).
• Costs – cost per click and cost per acquisition.
6. What are the main reports in Google Analytics that can be used regularly to report on
digital marketing effectiveness?
The answer to this question depends on the relevant version of Google Analytics – Classic
or GA4 as explored in Activity 10.1.
Answer should reference top-level measures that vary through time rather than details of
devices or screen resolutions.
1. Visitor characteristics, (e.g. country).
2. Visitor volume, (e.g. unique visitors).
3. Visitor source (i.e. Traffic or Acquisition media channels)
4. Content use (i.e. Behaviour or Engagement)
5. Visitor quality (i.e. conversion to lead or sale through using goals)
7. Explain the principles of effective AB testing.
AB testing refers to using two different versions of a web page (mobile/social media content)
image, button, display ad. The two versions are then randomly deployed to members of the
target audience to determine which version is the most effective for delivering results. The
goal is to increase the performance of the particular content/ campaign etc. See page 476 for
further discussion on AB testing.
8. Why is it useful to integrate the collection of online and offline metrics?
This enables both quantitative and qualitative market research.
1. Why are standards necessary to control the process of updating a website? Give
three examples of different aspects of a website that need to be controlled.
Content quality will be poor without standards. Poor quality may be manifested by brand and
corporate identity inconsistent across site or compared to other channels. Three examples to
be controlled are:
• Site navigation: inconsistent navigation making the site difficult to use.
121
• Quality of the site content: poor copy with grammatical errors and inaccurate
information can lead to increased customer complaints.
• Site functionality – broken links, interactive feature which don’t work, etc.
2. Explain the following terms concerning measurement of website effectiveness:
(a) unique visitors
A unique visitor to a site measured through cookies or IP address on an individual computer.
(b) page impressions
A page impression is a reliable measure denoting one person viewing one page.
(c) referring pages
A listing of the previous sites that users visited, which link to the current site.
3. Measurement of websites concerns the recording of key events involving customers

using a website. Briefly explain five different types of events.
Events include:
• customer arrives on site (from referring page);
• a user viewing a page (page impression);
• a user visiting a site (site visit/user session);
• a user clicking on a link or button;
• customer fills in online form to request information or to register with company;
• customer places order; and
• customer leaves site (exit page).
4. Describe and briefly explain the purpose of the different stages involved in updating
an existing document on a commercial website.
• Write – generate original content
• Review – examine the content for relevance accuracy and originality
• Correct – edit the content to correct mistakes discovered in previous stage
• Publish (to test environment) – launch content
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• Test – evaluate the effectiveness of the content and its power to achieve objectives
• Publish – go live with content.
5. Outline different types of measures for reviewing the effectiveness of social media
marketing.
A test version is used to trial a site to identify and remove errors before it becomes live.
6. Give three reasons explaining why a website may have to integrate with existing
marketing information systems and databases within a company.
Discuss the steps managers in businesses can take to ensure that the insight
available from different marketing platforms is actionable.
(a) For direct marketing – collecting customer information on the site needs to be added to
the customer database.
(b) For e-commerce – customer account information needs to be linked to the purchase.
(c) For measurement of performance review – integrating information on customer visits

with marketing outcomes such as offline communications and sales.
7. You have been appointed as manager of a website and have been asked to develop
a metrics programme. Briefly explain the steps you would take to develop this
programme.
(a) Define objectives.
(b) Define measures.
(c) Define processes and responsibilities for collection and review.
(d) Select tools.
(e) Implement.
(f) Review.
8. If a customer can be persuaded to register his or her name and email address with a
website, how can this be used for site measurement purposes?
Businesses need customer insight to monitor and improve their marketing effectiveness,
but customers want their privacy to be respected by limiting insights available. How
can businesses resolve this dilemma?
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These are fundamental marketing outcomes that need to be linked to customer information. This
information can be used to assess unique and new visitor number to the site. Registrations represent
quantifiable measures, which can be used for assessing campaign performance. They can be used
as a measure of success of the website in meeting its strategic marketing objectives; can be linked
to tactical goals and objectives and used to determine effectiveness, for example; increasing brand
awareness online. Can be used to assess customer acquisition rates and also provides foundation for
assessing conversion rates.
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Instructor’s Manual

For further instructor material

 Pearson Education Limited 2022

Sixth edition published 2016

© 2022 Pearson Education Limited. All Rights Reserved.

The rights of Dave Chaffey and Fiona Ellis-Chadwick to be identified as authors of

Part 1 Digital marketing fundamentals 5

Chapter 1 Introducing digital marketing 6

Chapter 4 Digital marketing strategy 50

Chapter 7 Delivering the digital customer experience 84

Digital marketing fundamentals

Introducing digital marketing

Learning objectives and topics

What is digital marketing?

Slide 1.6 (Figure 1.2) is the 7Ds.

Digital marketing goals and strategy

Digital marketing audiences and buyer behaviour

The 7Ds and key concepts

Key concepts covered are:

3. Content marketing (Figure 1.12 from main book)

5. Always-on lifecycle marketing (Figure 2.1 from main book)

6. Marketing technology (Martech) (Figure 1.13 from main book)

Activity 1.1: Why are C2C interactions important?

To highlight the relevance of C2C transactions to B2C companies.

You can also ask students to consider types of sectors.

• Retail – product reviews or reviews of a service (e.g. Trustpilot)

• Travel – holiday reviews

Activity 1.2: Integrating online and offline communications

To highlight differences in marketing communications introduced through the use of the

Examples of interactions related to the figure include:

1. A phone number on a website offering a customer to call a tracked phone number.

2. An ad in a magazine or on TV with a call-to-action or discount code to be used on the website.

3. An option to pay offline, e.g. by phone or in store.

5. Online delivery of software as part of package, e.g. Music or Office software.

Activity 1.3: Understanding adoption of digital devices and platforms

• How many devices?

• How many searches and what types of searches happen on Google?

Recommended resources: see www.davechaffey.com/book-support/, digital marketing statistics

• Ofcom UK Market Communications Reports

Activity 1.4: The latest marketing technology landscape

Martech category Explanation Key technologies

Infrastructure Database storage for data MySQL (used for

See table above.

• Mailchimp and HubSpot Marketing Automation

• Google Analytics and Google Tag Manager

Case study 1 Boo.com

1. Discuss which strategic marketing assumptions and decisions led to Boo.com’s

4. Ps – Product, Pricing, Place and Promotion

The extended service mix

Details of the marketing mix that relate to Boo.com are as follows:

1. Explain digital marketing.

2. Explain the importance of integrating digital and traditional communications channels

Traditional communications can be used to draw customers towards online channels.

2. Services-oriented relationship-building website (Help desk and FAQ), lead generation

3. Brand-building site – can include sampling, capture of leads or creation of community

5. Social network or community site – encouraging sharing through creation of consumer-

4. Explain what is meant by electronic commerce, social commerce and digital

2. Online PR. This includes outreach to publishers and bloggers.

6. Summarise the main communications differences between digital and traditional

• Intelligence – can monitor customers’ interests and profile them.

• Individualisation – it is possible to tailor email and web communications (personalisation).

• Integration – of online and offline channels remains important.

• Independence of location – possible to reach a wider marketplace.

Also explained by concepts covered in the next question.