Professional Documents
Culture Documents
net/publication/336375148
CITATIONS READS
0 11,308
3 authors, including:
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Marjolein Visser on 24 May 2021.
Marjolein Visser,
Berend Sikkenga & Mike Berry
2nd edition
Digital Marketing
Fundamentals
Marjolein Visser RM
Berend Sikkenga SMP
Mike Berry
Second edition
0 / 21
This publication is protected by copyright. If you wish to (re)use the information in this
publication, you must obtain prior written permission from Noordhoff Uitgevers bv.
More information about collective rights management for Dutch educational institu-
tions can be found at www.onderwijsenauteursrecht.nl.
ISBN (ebook) 978-90-01-74985-9
ISBN 978-90-01-74984-2
NUR 802
© Noordhoff Uitgevers bv
Preface
Marjolein and I have been gratified to learn that the books have found a
permanent place in the curricula of providers of accredited marketing
courses and in the business education programmes of universities across
the world. Universities and business schools in Australia, New Zealand,
Asia, Scandinavia, the Netherlands, the US and the UK have adopted the
book which won the PIM Marketing Literature Prize for The Best Marketing
Study Book.
Sadly, just after we started working on this edition, we received the news
that Berend Sikkenga, co-initiator and co-author of this book, had died
unexpectedly. We dedicate this edition to him. Berend was an inspirational
Digital Marketer and Digital Marketing Fundamentals would not exist
without him.
Naturally, we also wish to thank to our publisher Bert Deen for his enormous
dedication, and patient encouragement. We thank our colleague Tony
Williams – who is not only an accurate and tireless translator, but fluent in
Dutch, English and Digital Marketing. We also thank our families including
Jane and Douwe for their support and understanding while we wrote this
book.
Contributions from over twenty Digital Marketing specialists (see ‘About the
authors’) ensure that contemporary best practice is firmly embedded in the
approach and techniques in this book. We are grateful for their involvement.
In addition, we thank all Digital Marketing professionals and organisations
who have provided us with current examples and cases.
We very much appreciate the fact that the first adopters of this book have
provided several suggestions for improvement. It is wonderful that an
increasing number of teachers and students from across the world are
sending us tips and ideas. We value your contributions!
We hope to meet all readers soon in the groups for this Book:
r digitalmarketing.noordhoff.nl: the official website, including test
questions, trainer concepts and Teaching PowerPoints
r LinkedIn Lecturers Digital Marketing Fundamentals (linkedin.com/
groups/13568788/): for tips, current events, research results and
discussion
r Digital Marketing Fundamentals on Facebook (www.facebook.com/
groups/digital.marketing.fundamentals.book): eg. new insights and
information exchange
These adjustments make it difficult to use the 1st and 2nd editions side by
side.
Contents
1 Digital Marketing 13
3 Market Sensing 69
4.1 The aim of the product realisation process is customer value 132
4.2 Co-creation 135
4.3 Product development, mass collaboration and crowdsourcing 137
© Noordhoff Uitgevers bv
6.1 Using digital communications and sales channels to reach and win
customers 224
6.2 Search Engine Marketing 226
6.3 Link-building 232
6.4 Use of social media channels 243
6.5 Email marketing 254
6.6 Marketing automation 266
Questions and assignments 272
Case: Samsung UK targets SMEs 272
References 622
Illustrations 632
Index 634
2
Strategy and Business
Models
3
Market
10 Sensing
Customer 4
relationship Product
management Realisation
5
13 9 Customer 11
Planning and Order 1 acquisition: Effective
organisation processing Digital Marketing digital brand websites
communi- and apps
cations
6
8 Customer
Customer acquisition:
acquisition: owned or
sales and 7 earned
pricing Customer channels
acquisition:
paid channels
12
Digital analytics
© Noordhoff Uitgevers bv 13
1 1
Digital Marketing
Author: Marjolein Visser
Ebusiness The authors of this book see ebusiness as a way of doing business with the
assistance of digital technologies. Ebusiness is a wider concept than Digital
Marketing and ecommerce. In ebusiness it’s not only about the interaction
with markets, but about adequately establishing all of the processes that
enable an organisation to make their products or provide their services. It’s
about the front and the back of the organisation, including the parts the
customer does not come into contact with (see Figure 1.1). Ecommerce is
simply defined as ‘selling and buying online’.
© Noordhoff Uitgevers bv DIGITAL MARKETING 15
Ebusiness
1
Digital
Marketing
Market
Also, Digital Marketing can be more efficient than traditional marketing. Eg.:
r It is possible to share large quantities of information with potential
customers at low cost.
r The marketing budget can be more purposefully assigned due to the fact
that the effects of marketing communications are (in general) more
easily measurable.
The internet has accelerated the transition from mass marketing to individual One-to-one
marketing. The aim of individual marketing is to fully tailor products and marketing
marketing or marketing efforts to the individual customer. Individual
Because the internet allows for the customer’s individual data to be saved, marketing
communications have become increasingly ‘personalised’. The profile of the
individual customer is recognised; thus, they receive a ‘personalised offer’,
an individual proposition. That way a travel agency can offer a customer, who Individual
is recognised in their database as someone who likes to take his/her proposition
children to a theme park, a last-minute deal for Disneyland Paris.
16 © Noordhoff Uitgevers bv
In referencing PR Smith’s 5Ss model, Chaffey & Ellis-Chadwick (2019) list 5Ss model
five objectives for Digital Marketing communications activity:
r Sell; increasing sales by accessing new markets or by developing new
(online) products.
r Speak; initiatives for better communications with (potential) customers.
r Serve; improving customer service.
r Save; cost reduction through the use of digital media.
r Sizzle; initiatives to support the brand.
The Four Ps are often denounced as not being viewed from the purchaser’s
perspective. For this reason, Robert Lauterborn introduced the Four Cs
model. He states that marketing has developed from a technique for
organisations to sell a product (P) into a philosophy to endear themselves to
their customers and encourage commitment. The old Ps are predominantly
suitable for a manufacturer, the modern Cs are a better fit for a more
customer-orientated organisation that views itself through the eyes of their
customers (Lauterborn, 1990).
Four Cs model Therefore, Lauterborn transforms the Four Ps model into the Four Cs model
(see Table 1.1).
SIVA-model Dev and Schultz followed up on this model by translating it into the SIVA
model Solution, Information, Value, Access (Dev & Schultz, 2005). Both the
Four Cs and the SIVA model fit in with the interactivity and customer focus
that characterises Internet marketing, but they turned out to be less suitable
for the structure of this book. After weighing the pros and cons of each of
the established models, the format that was chosen was one that matches
the core processes related to marketing as described in Philip Kotler’s recent
books. This way the relationship to general marketing theory is retained.
The five core processes of a business’s marketing are (Kotler & Keller, 2016):
Market sensing 1 The market sensing process: the process that keeps organisations up to
process date with the market’s needs, developments and trends.
Product 2 The product realisation process: researching and developing new core
realisation products and services, extending the market supply and the launch of
process
the product.
Customer 3 The customer acquisition process: defining target markets and acquiring
acquisition new customers.
process
© Noordhoff Uitgevers bv DIGITAL MARKETING 19
4 The order fulfilment process: receiving and approving orders, shipping the Order fulfilment
ordered goods on time and collecting payments. (literally: delivering on process
your promises).
5 The customer relationship management process (CRM): building a Customer
deeper understanding, a better relationship and a better offer for relationship
management 1
individual customers.
Among other things, online market sensing consists of actively following and
analysing the behaviour of your own website visitors, gathering information
from social media and online market research (see Chapter 3). One of
online market research’s biggest advantages is that results can be quickly
collected and immediately accessed.
With the realisation of a new product (Chapter 4), concepts eg. ‘user User generated
generated content’ (UGC) and crowdsourcing come into play. Users lay the content (UGC)
foundation for new products and product improvements by reviewing Crowdsourcing
products and answering the questions of other users. Crowdsourcing
organisations actively encourage the internet community to get involved and
come up with new ideas for products. Market sensing and digital/web Digital/web
analytics (Chapter 12) play a big part in forecasting how successful new analytics
products will be. Immediate feedback from users leads to a more rapid
process of quality improvement and product innovation.
Market sensing does not only occur when a product is brought to market, but
during all business processes. Using digital/web analytics, valuable
information about the target market’s behaviour is gathered permanently.
Based on that information, the processes are being optimised and
20 © Noordhoff Uitgevers bv
Market
sensing
Customer
relationship Product
management realisation
Digital
Marketing
Order Customer
processing acquisition
B Brands
Paid B
media
Paid
Owned media
2.0 media 3.0 B
1.0 Media
Earned Owned
Paid C media media
media
Earned
C media
C Consumers
In Figure 1.3 you also see the concepts: paid (= bought), owned and earned
media. These are collective concepts for types of media:
1 Paid media: these are types of media that marketers can buy to create Paid media
brand awareness (consider online advertising, radio, television and print).
2 Owned media: these are types of media that are readily available to Owned media
1
marketers themselves and in which they can autonomously decide on the
content (eg. websites, apps, email newsletters etc.).
3 Earned media: these are all types of media that a brand ‘earns’ thanks Earned media
to customers or journalists, or bloggers/influencers writing about your
brand, eg. on social media, or because other organisations refer to your
brand on their website.
During the first period (the mass media phase) the gap between ‘brands’ Mass media
and consumers was the largest; it was mainly the marketer who sent out phase
messages to the consumer, who received them. This is also called ‘push’. Push
In the second marketing phase (the internet phase) there was more Internet phase
interactivity between marketers and consumers and a dialogue started
between them.
In the last (most recent, current) phase, the social media phase, it goes Social media
without saying that consumers are now influencing the brand and therefore phase
are an indispensable part of the process. Not only is there dialogue, but
also a reciprocal influence. In this case there is no ‘push’ anymore, but
‘pull’. The consumer has a say in what the brand entails and the marketer Pull
observes the consumer’s perception of the brand and is supportive of this.
(You can read more about this in Chapter 4.)
The first point of attention for a digital marketer is generating visits to the
digital sales channel, in this case the ecommerce website (visit). Here, the
objective is to ensure that visitors are so interested in what they find, that
they want to find out more about what is on offer (captivate). The next step
is ensuring that the visitors compare and evaluate products in order to come
to the decision of what to buy (decide). Then the visitor orders the chosen
product (order) and completes the payment procedure (payment), leading to
the realisation of actual sales. The last objective is to bind the buyer to the
ecommerce website in order to encourage repeat purchases (bind). This is
clearly shown in the Digital Marketing funnel (Figure 1.4). This funnel is used
22 © Noordhoff Uitgevers bv
1
FIGURE 1.4 The Digital Marketing funnel
Visit
Captivate
Decide
Order
Pay
Bind
People tend not to find an online retailer by chance; rather the digital
marketer must first reach out and convince them. This can be done by
constructing a carefully-planned mix of paid, earned and owned media,
supplemented with offline communication. Offline media are not covered in
this book. The target audience can be reached by, eg. posting a video on
social media (Reach). Once someone has seen the message, they must
give it their full attention and become aware of the website’s existence
(Attention). Eg. someone is watching the first part of the video. It must
attract their interest (Interest). If this person watches the video until the
end, the digital marketeer knows this has succeeded. Subsequently, the
potential customer must be motivated to visit the website (Activation).
Activation Activation means encouraging those who have been reached online, to
follow through with the digital marketer’s required action. This is illustrated
RAIA model in the RAIA model (Figure 1.5). Just as in the Digital Marketing funnel, this
is a funnel through which the digital marketer attempts to guide people,
using a step-by-step approach. More about this can be found in Section 5.1.
Conversion is a general term used to describe the group of people who have
been reached by Digital Marketing communication and who have exhibited
the desired behaviour (ie. ‘converted’). Any successful activation is a
conversion, which can lead to some confusion. This is why the ultimate aim
Hard conversion of Digital Marketing, eg. an online sale, is called a hard conversion. An
intermediate step, eg. clicking on an ad or visiting the website, is called a
Soft conversion soft conversion. Often, several soft conversions are necessary in order to
achieve a hard conversion: someone reads a social media message,
watches a corresponding video, then searches for more information using a
search engine and clicks on a link in an article, leading them to the website,
where they eventually buy something.
© Noordhoff Uitgevers bv DIGITAL MARKETING 23
Reach
1
Attention
Interest
Activation
FIGURE 1.6 From the RAIA model to the Digital Marketing funnel
Reach
Digital
communication
channel Attention
Interest
Owned media Activation
Paid Earned
media media
Encourage
Visit loyalty
Captivate
Digital Decide
sales channel
Order
Pay
Bind
24 © Noordhoff Uitgevers bv
In recent years, the confidence that web users have in the integrity of
organisations who sell over the internet has been damaged on a number of
occasions. Examples are privacy violations, the selling of data to third
parties and negligent security. For this reason, Chapter 13 will elaborate on
the ethical aspects of Digital Marketing in greater detail.
2
Strategy and Business
Models 1
3
Market
10 Sensing
Customer 4
relationship Product
management Realisation
5
13 9 Customer 11
Planning and Order 1 acquisition: Effective
organisation processing Digital Marketing digital brand websites
communi- and apps
cations
6
8 Customer
Customer acquisition:
acquisition: owned or
sales and 7 earned
pricing Customer channels
acquisition:
paid channels
12
Digital analytics
This book is structured in the same order that many organisations use to
make their marketing decisions. If you are not particularly familiar with
marketing and management issues you may choose to read Chapters
3 to 10 first, before tackling Chapter 2. That way you will get a better
understanding of the exact contents of the business model and its specific
elements and, crucially, why the selection of a business model is so
important for every organisation.
26 © Noordhoff Uitgevers bv
1.1 Compare the way that amazon.com sells books to how a bricks-and-mortar
bookstore like Barnes & Noble does this.
a What are the comparisons and differences in the way books are being sold?
b Describe your idea of how each of the five marketing related processes (see
Figure 1.2) progress for amazon.com and for Barnes & Noble, the bookseller.
c How would you characterise both organisations: as a Digital Marketing
organisation, as a traditional marketing organisation or as a mixture of both?
Support your answer with evidence.
d Digital Marketing has developed in three phases. To what extent have both
organisations adapted to the most recent phase? Support your answer with
examples.
www.unilever.com
www.staples.com
www.independent.co.uk
web.wechat.com
www.apple.com
www.citymapper.com
www.airbnb.com
b Pick one of the above suppliers and construct the Marketing Mix using the
Four Ps and the Four Cs. What do you notice?
c Using the Digital Marketing funnel and the RAIA model, create a coherent
system of Digital Marketing objectives for the office supplies retailer,
Staples.com. You may rely on assumptions but try to find some realistic
conversion percentages online.
1.3 CASE
By Marjolein Visser
Marriott International, the parent organisation of, amongst others, the
Marriott and Ritz Carlton hotels, tries to make use of as much modern
technology as possible in order to meet the needs of the young,
contemporary business traveller, so-called Millennials. Using the Marriott
Bonvoy app, guests participating in the loyalty programme are able to book a
© Noordhoff Uitgevers bv DIGITAL MARKETING 27
hotel, check in on their mobile device, request services and extras, and chat
with Marriott employees before, during, and after their stay. The app uses
chatbots for simple questions, allowing guests to receive an immediate
response. On the day before their arrival at the hotel, guests receive a push
1
notification on their smartphone, informing them that they can check in. They
will then receive an automatic notification when their room is ready for them.
This prior communication means that the hotel is prepared for their arrival.
Since payment information is stored in the guest profiles, guests are given a
virtual key via the app or, upon entering the hotel, they may visit a dedicated
check-in counter where a pre-programmed key card is already waiting for
them. At the end of their stay, guests receive another push notification
alerting them to the availability of a mobile checkout option. Should they so
choose, guests are asked to provide an email address to which their invoice
can be sent, meaning they no longer have to call at the Hotel Reception.
Within the hotel itself the many possibilities that mobile communication has
to offer are also employed. Marriott app users can request the most
commonly used services from a drop-down menu, such as the provision of
extra towels, pillows or breakfast in bed. With increasing frequency, hotel
rooms are also being equipped with a digital assistant which connects guests
with the Reception, allowing them to request room service, for example.
“Marriott combines ‘high tech’ with ‘high touch’ to offer guests a seamless
and personalised experience. We use technology that enables our members
to have an ongoing “conversation” with us, regardless of which channel or
device they are using, whether they are staying in one of our
accommodations, or communicating through our call centre agents, our app
or whilst searching for something on Marriott.com”.
The M Live social media monitoring hub also plays an important role in
providing a seamless customer experience. Messages that hotel guests
send via social media are analysed from social hubs in the United States,
Europe and Asia. When someone is staying in a Marriott hotel, this is
identified from the geolocation that is linked to the messages.
“Let’s say you’re staying in a Ritz Carlton hotel somewhere in the world and
you’ve posted a photo on Instagram to let everyone know that you’ve
become engaged”, said Scott Weisenthal, Vice President, Global Creative
and Content Marketing, in an interview on inc.com, “a second later this
comes up in our M Live Command Centre... we will then call the hotel and
the hotel will send up a bottle of champagne”.
28 © Noordhoff Uitgevers bv
The Marriot app even allows you to unlock the door to your room
Sources: hotelbusinessweekly.com, inc.com, skift.com and mobile-appmarriot.com