1

Digital Marketing
Session 1

Gundula Glowka
 2

Gundula Glowka
Hochschullektorin
Management, Communication & IT
 3

Course Outline We meet at 9.00 at

the MCI Aula and at
11.00 at MCI V

Session 1 Session 2 Session 3 Session 4 Session 5 Session 6

Introduction to Distinguished Guest Digital consumer Digital marketing Using channel CRM,
Marketing Hermann Erlach behaviour: The strategy strategy to reach Paid advertising,
CEO Microsoft digital consumer in Content marketing, your customers, marketing
Austria the digital 7ps automation
ecosystem, Affiliate marketing
Corporate Brand Omnichannel data analytics,
Identity Celebrity digital data
endorsement marketing
 4

Grading
• Thursday, 21.12.2023 from 15:30 to 16:30
• Multiple-Choice Test
• 60 Minutes
• approx. 30 questions from Gundula Glowka and
• 30 questions from Claudia Brauer
• 1 – 4 answers correct, at least 1 correct
• Overall class workload: 5 ECTS = appr. 150 hours
 5

3 Minute Exercise
Write down what you want to learn and what you expect from this class
 6

Learning goals
At the end of this class, students can
• give a definition of digital marketing
• understand the concept of the extended self
• understand the basic meaning transfer model
 7

Definition Marketing
• Marketing = Winning customers and managing profitable customer
relationships.
• Marketing is "the process by which companies engage customers, build
strong customer relationships, and create customer value to obtain value in
return from customers." (Kotler et al.; 2019)

• Marketing Goals:
•Acquiring new customers by promising value.
•Retaining existing customers and expanding relationships by satisfying
customer needs.
 8

Digital Marketing
Digital marketing can be defined as:
• Achieving marketing objectives through the use of digital media, data and
technology
• An adaptive, technology-enabled process in which organizations
collaborate with customers and partners to co-create, communicate,
deliver and sustain value for all stakeholders (Kannan & Hongshuang,
2017)
• Digital marketing encompasses online marketing but also encompasses
other channels like mobile marketing (e.g., mobile apps and SMS),
electronic billboards, digital television, and other digital media.
 9

5D of digital marketing
 10

Online Marketing
• Digital marketing is a broader term that includes all marketing activities
that use digital channels and technologies, which can include online
marketing but extends beyond it.
• Online marketing refers to all measures you take on the internet to draw
attention to a specific product.
• Online marketers use search engine optimization (SEO), social media
marketing, video advertising, etc. to lead visitors to their desired
presence, usually their own website.
 11

Digital marketing research

 13

Consumer Needs
 14

Consumer needs
• Human striving for satisfaction due to a sense of scarcity
• Lack or scarcity is a prerequisite for a need
• The economy provides a remedy by economically
producing and offering products and services
• Products and services create a benefit and satisfy needs
• Distinction can be made between deficit needs and
growth needs.
 15

Sources of Consumer Needs

SDGs
The world faces several major grand challenges, which are complex,
multifaceted issues that have significant and far-reaching impacts on society,
the environment, and global well-being
 16

Sources of Consumer Needs

5x5 matrix for technological classification
 17

Good business models solve customer needs

 18

Good business models solve human needs

Kreutzer 2022, p. 151

 19

Core Questions of a Strategic Business Model

(1) Value proposition: What do we offer our customers?

This dimension defines the services to be provided and the benefits they
convey to customers.
(2) Value chain: How do we produce our products and services?
Here it is determined which partners and which products and services are
required from them. The type of relationships to be established with the
partners is described in order to elaborate the value chain.
(3) Revenue mechanics: How is value generated?
The cost and revenue streams generated by product and service delivery and
marketing/sales are mapped here.
(4) Customers: Who are our target customers?
The customer segments considered relevant, the main channels to reach them
and the targeted customer relationships are described here.
Kreutzer 2022, p. 151ff
 20

E-business
E-business is the initiation as well as the partial or full support, transaction and maintenance of
service exchange processes between economic partners through information technology (electronic
networks) (Wirtz 2000,2018)
 21

B2C E-Business Models (BM)

 22

Content BM
 23

Commerce BM
 24

Context BM
 25

Connection BM
 26

Marketing orientation
 27

Survival in market competition

A company can only survive in cut-throat competition in the market economy if
• it fulfills customer wishes better
• or exploits cost-cutting potential better than its competitors.

Markets: The entirety of economic players who offer and demand goods.
Regulated meeting of supply and demand.

(Kotler et al., 2011)

 28

Marketing orientation
• Basic assumption: The organization's goals are only achieved if it succeeds
in identifying the needs and wishes of the target markets and serving and
satisfying them faster and more effectively than the competition.
• The task is to find the right products for consumers (as opposed to finding
consumers for finished products).
• Key questions:
• Which markets are available?
• What needs can be found in these markets?
• Which products can satisfy needs?
• How can customer benefit/customer satisfaction be generated?

(Kotler et al., 2011)

 29

Sales orientation
• Try to sell everything you have produced or what you can sell.
• It is assumed that customers will only buy if there is a lot of
advertising/special promotions.
• In the worst case, customers are dissatisfied with the product, never buy it
again and also spread bad reviews.
• Too much untargeted contact (e.g. advertising brochures etc.) can also
quickly lead to the customer relationship being broken off.
 30

Segmentation
• Segmentation enables smarter, more appropriate targeting and messaging
within your potential customer base
• Target groups will have different uses for products and varying
perspectives on services. Their lifestyles will be inherently different as will
be their needs, aspirations, opinions and much more.
• Five common forms of segmentation variables:
• Geographic (location),
• Demographic (age, race, gender, education, employment, income),
behavioural (buying patterns, frequency)
• benefit (perceived)
• Psychographic (lifestyle)
 31

Personas
 32

Exercise
Think of rational and irrational consumer choices you have made for purchasing
decisions that relate to different business models.
Was your involvement in the buying decision high or low?
 33

The Self
 34

The Self
Self concept: The attitude a person holds towards her/himself; the beliefs
about your own attributes; composed of many attributes; can be distorted
Ideal Self: Ideal Self is a person's conception of how they would like to be;
partially based on elements of one's culture
• Note: our aging population and affluence fuel demand for fantasy-status
conscious- youth oriented
• Women's Ideal Body Types Throughout History
Actual Self: A person's realistic appraisal of his/her qualities
35
 36

Brand identity and the self

Brand identity should target
• The ideal self – what do we want our brand to become in the future
• The ideal social self – how do we want the brand to be seen by their target
groups.

• Consumers are motivated to consume brands that they feel are consistent
with their self-concepts. They are less drawn to brands that have no
relevance to their self-concepts – or to those that appear contradictory.
• The self is seen as embodied (i.e., not merely thoughts) and that material
things (i.e., objects in the noun categories) most clearly make up the
extended self.
 37

Symbolic Self-Completion Theory

• The Symbolic Self-Completion Theory is the perspective that people who
have an incomplete self-definition in some context will compensate by
acquiring symbols associated with desired social identity
• When people are unsure of themselves, they may use possessions to show
who they are.
• Individuals demonstrate materialism (success as having wealth and
possessions) when definitions of themselves are uncertain or threatened.

• 36 Years Ago Being a Woman Was Very Different

 38

Extended self
(Belk, 1988)
• Extended self: People often perceive such possessions even as part of their
self
• The self is seen as embodied
• Material things (objects) most clearly make up the extended self.

• Advertising targets consumers feelings of "incompleteness" by showing how

products will make up for their incompleteness. The products symbolize
some missing quality or qualities.

“Knowingly or unknowingly, intentionally or unintentionally, we regard our

possessions as parts of ourselves”(Belk, 1988, S. 139).
 39

The Virtual Self

• Online people assume a virtual identity. One example could be the use of an
avatar in virtual worlds or video games.
• People can filter how they appear and filter how others see them through
selected sharing of experiences.
• Online in social networks people can reflect an image of themselves that may
be less like their actual self and more like their ideal self.
 40

Self-Reflection work

• Write down things you can identify about your

consumption and your self-concept for the next 10
minutes
• Share your results with a fellow student
• Identify things you have in common or not
 41

Consumer and consumer culture

 42

Culture
(McCracken, 1986)
Culture
1) As lens through which the individual views phenomena
Culture determines how the world is seen
2) As the blueprint of human activity – determining and co-ordinating
social-action and productive activity
Culture determines how the world will be fashioned

Can marketers establish new cultural categories of person?

 43

Advertising, Fashion, Goods and Rituals

(McCracken, 1986)
• Marketers can seek to establish or encourage a new cultural
category of person to create a new market segment
• Objects can give cultural meaning a concreteness for the individual
that it would not otherwise have
• Goods are an opportunity to make culture material. Like any other
species of material culture, goods allow individuals to classify
visually among culturally specified categories by encoding these
categories in the form of a set of material distinctions
 44

Meaning transfer model – McCracken, 1986

 45

Exercise
“Knowingly or unknowingly, intentionally or unintentionally, we regard our
possessions as parts of ourselves”(Belk, 1988, S. 139).

Think of possession, grooming, divestment and exchange rituals and share

your thoughts with a fellow classmate.

Why do we consume?
What do you prefer getting as a birthday present?
Why do we buy a certain software?
What about the consumption of music?
 46

GROUP PUZZLE
The Jigsaw Classroom is a cooperative learning technique that reduces
racial conflict among school children, promotes better learning,
improves student motivation, and increases enjoyment of the learning
experience.
 47

Learning goals
At the end of this class, students can
• give a definition of digital marketing
• understand the concept of the extended self
• understand the basic meaning transfer model