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Slide 1.

Part 1
Digital marketing fundamentals
Chapter 1
Introducing digital marketing

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Learning objectives
Evaluate the relevance of digital platforms and
digital media to marketing
Evaluate the advantages and challenges of
digital media
Identify the key differences between customer
communications for digital marketing and
traditional marketing.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Questions for marketers


What are the options for digital marketing to
grow our business?
What are the key benefits of digital marketing?
What differences do the digital media introduce
compared to existing marketing communications
models?

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Online Opportunities

Timeline of online services indicating innovation in business model or


marketing communications approach
Table 1.1

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.1

Google timeline

Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Definitions - warning
Which definition is used isnt so important, within
a company definitions help:
Scope the digital marketing activities that need to
be managed
Explain opportunities for new marketing
approaches digital transformation
Highlights some risks to be managed

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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What is it?
Introducing the scope of digital marketing
Achieving marketing objectives through
applying digital technologies
How?

Marketing is the management process


responsible for identifying, anticipating and
satisfying customer requirements profitably.
Chartered Institute of Marketing

How?

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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A more in-depth definition


Customer-centric digital marketing involves:

Applying
Digital technologies which form online channels
(Web, e-mail, databases, mobile, iPTV)
to
Contribute to marketing activities aimed at achieving
profitable acquisition and retention of customers
(within a multi-channel buying process
and customer lifecycle)
through
Improving customer knowledge (of their profiles,
behaviour, value and loyalty drivers), then delivering
integrated targeted communications and online
services
that match their individual needs

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Which platforms are involved?


What ways can you access the
Web or Internet through a browser?
Dual-screening is important
For suggestions, see p 12-13

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.2

Qype UK (www.qype.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.3

The intersection of the three key online media types


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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How do digital technologies contribute to


marketing?

The definition of marketing by the Chartered Institute


of Marketing (http://www.cim.co.uk/) is:
Marketing is the management process responsible
for identifying, anticipating and satisfying customer
requirements profitability
Give examples of how the Internet (web and e-mail)
achieves these?

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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How do digital technologies


support marketing
Identifying the Internet can be used for marketing research
to find out customers needs and wants (Chapters 7 and 10).
Anticipating the Internet provides an additional channel by
which customers can access information and make
purchases evaluating this demand is key to governing
resource allocation to e-marketing as explained in Chapters
2, 3 and 4.
Satisfying a key success factor in e-marketing is achieving
customer satisfaction through the electronic channel, which
raises issues such as: is the site easy to use, does it perform
adequately, what is the standard of associated customer
service and how are physical products dispatched? These
issues of customer relationship management are discussed
further in Chapters 6 and 7.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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YouTube video explaining the Tesco Homeplus Virtual Subway Store


presence in South Korea.
Figure 1.4

Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Benefits of digital marketing The 5Ss

Table 1.2

The 5 Ss of Internet marketing

Source: Chaffey and Smith, 2008

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Applications of digital marketing

An advertising medium
A direct-response medium
A platform for sales transactions
A lead-generation method
A distribution channel
A customer service mechanism
A relationship-building medium

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.5

North West Supplies Ltd site (www.northwestsupplies.co.uk)

Source: Opportunity Wales

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Summary and examples of transaction alternatives between


businesses, consumers and governmental organisations
Figure 1.6

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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E-business and e-commerce


You are attending an interview for a job in an
E-commerce department. You are asked to:

Define e-commerce
Explain the relationship between
e-commerce and e-business?

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.7

The distinction between buy-side and sell-side e-commerce


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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What are the challenges


of managing strategy!

Unclear responsibilities for digital


Setting objectives
Lack of budget
Budget wasted through experiments/duplication
Developing new propositions and campaigns to
compete
Lack of measurement
i.e. No plan!

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Why is a digital strategy needed?


To set clear goals for digital channels
To align with business strategy (avoid ad-hoc
approaches)
Create a specific online value proposition (OVP)
Specify communications tools to drive visitors
Integrate digital and traditional channels
Manage customer lifecycle (e.g. through email
marketing)

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Different overlapping forms of web presence


Give an example of each
Transactional e-commerce site:
Examples Amazon, Dell
Services-oriented/relationship building
Accenture, British Gas

Brand Building site


Tango, Guinness

Portal or media site


Yahoo! Silicon.com

Social network or media site


Note that these types overlap
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.8

A generic digital marketing strategy development process


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.9

RACE: Reach-Act (Interact)-Convert-Engage.

Source: Smart Insights (2010)

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Table 1.4

Key marketing communications concepts


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Six categories of e-communications tools or media channels


(Chaffey and Smith, 2008)
Figure 1.10

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.11

Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.12

Evolution of web technologies

Source: Adapted from Spivack (2007)

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Differences of digital media


Split into groups
For each of 1.13 to 1.16 students summarise
differences between traditional media and digital
media and how they can be used to advantage
by companies

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Summary of communication models for (a) traditional media,


(b) new media
Figure 1.13

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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


(same message); (b) new media (unique messages and more information
exchange between customers)
Figure 1.14

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.15

strategy

Channels requiring integration as part of integrated e-marketing


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.16

The role of mixed-mode buying in Internet marketing


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Table 1.5

An interpretation of the differences between the old and digital media


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Figure 1.17

Travel Republic (www.travelrepublic.co.uk)


Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Fundamental digital
marketing concepts
Customer engagement:
Repeated interactions that strengthen the emotional,
psychological or physical investment a customer has
in a brand cScape
the level of involvement, interaction, intimacy, and
inuence an individual has with a brand over time
Forrester

Permission marketing:
A value exchange in return for communications and
profiling, e.g. Email opt-in, Like of brand on Facebook

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Content marketing activities

Define content engagement value


Create content media / assets
Content syndication (influencer outreach)
Content participation
Content access platform

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Content marketing approaches

All available from: http://pinterest.com/smartinsights/our-infographics/

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Grehans 4P of Digital Marketing

Positioning
Permission
Partnership
Performance

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Positioning is all about using paid and organic


search to drive ads.
Permission is opening a dialog with potential
customers and customer retention management.
Performance is measuring the success of your
Website and online marketing strategies.
Finally, partnership is affiliate marketing, copromotion and joint venture.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Positioning: Some time ago the search engine marketing


community decided that it needed a more businesslike description
and dropped the word positioning for marketing (and relegated the
word optimization to the technical side of the industry).
However, the word positioning was, perhaps, a better description,
because the truth of the matter with search is: if you're not
positioned in the top 20 to 30 results then you'll probably never be
found. People simply don't click through any further than the second
page. And usually, they're on an information search mission when
they are motivated to go that far.
Getting into a search engine index is not that hard - but getting that
all important top 20 listing may be somewhat more elusive.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Permission: Before the notion of search as the primary method of


finding stuff on the web was realized, the "killer app" the internet
would brought was email marketing. It's a shame that the "killer app"
has almost been killed by those who relentlessly spam us each and
every day. The adoption of spam filters and white lists by people
trying to avoid the daily clutter in their in box has marginalized the
opportunities that existed to get to talk directly with your customer.
Unfortunately, it's all too easy to end up as collateral damage in the
spam bin even with your own opt-in subscribers.
But there's no denying that email is still a mighty powerful tool in the
online marketing armory. Because it's when you get this 'permission'
to open up a dialogue with your potential new customer that you're
able to nurture a one-to-one relationship.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Partnership: We're using search to drive qualified traffic to our sites


and then gaining permission to open that all important dialogue. And
this is where we can even get into a business partnership with our
customers: by turning them into affiliates.
Affiliate marketing is one of the most powerful methods of attracting
potential new customers and vastly improving sales. Whether it's a
straight forward numbers type program such as Amazon i.e.
anybody at all can sign up and start to send traffic and receive
commissions, or more selective type joint venture programs, affiliate
marketing really works.
And it also starts to close the loop. Professional affiliate marketers
use search to drive traffic and can build up huge mailing of their own
to promote your goods and services. Imagine having a global team
of online marketers acting as your sales force!

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Performance: Marketing, both offline and online, is all about return on


investment. How much profit do our marketing efforts add to the bottom line.
Just as in conventional marketing we have a promotional mix to evaluate,
the same applies online.
We need to test and measure everything we do online to acquire new
customers and improve sales. So web analytics are vital. Does our search
budget provide us with the best method of gaining sales. Or does email
marketing provide us with a better return. Does our affiliate program work
successfully as a promotion and distribution channel?
Conversion is the all important word in web analytics. Measuring success is
critical to the future growth and development of our online businesses. But
what do we actually measure? And how do we do it? There's a new science
in analytics growing organically in the industry. Everything from being found,
to sales and customer acquisition, to usability and campaign testing can be
measured and gauged for performance.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Changing Marketing Landcape due to


Digital
Re-engineering an organizations operating model for
marketing in a digital age requires a holistic approach
across structure, people, process and tools.
Over-achievers focus on bringing in the right talent and
capabilities to think about marketing in a digital age (not
digital marketing), push for integration (not hand-offs),
and organize within a holistic operating model (not just
with organigrams).

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Changing Marketing Landcape due to


Digital

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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People

The right people must be in place to successfully create a total


consumer experience and integrated solutions. Right people
embrace the company culture, values, behaviors, and competencies
required to deliver the brand strategy. In over-performing
organizations, leaders ignite change and lead from the start. They
think differently about talent and advocate learning, partnering with
HR to recruit and train. They empower employees, moving away
from command and control. Further, they create future leaders by
motivating millennial employees. Practical initiatives one can
implement in organization are:

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Assess your company culture to determine your


readiness to embrace and build a culture of innovation,
curiosity, risk taking and empowerment capitalize on
quick wins and close gaps
Form pilot teams to think and act outside corporate;
invite new partners in to help solve business issues
Work with HR to ensure job specs and hiring profiles
push beyond the usual candidate pool
Create programs that appeal to millennials (e.g.,
mentorship, flex time for personal passions)

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Structure
Structure isnt just about the org chart: its one networked
organization collaborating to achieve an aligned strategy.
Marketers must embrace a more fluid and integrated
organization capable of delivering a total consumer
experience around their brands positioning. The
organization must be networked across functions, teams
and partners. The structure that supports such strategic
success requires marketing leaders to break down silos,
orchestrate a team of specialists, build communities of
excellence, refine decision-making flows, and clearly
establish business KPIs. Practical initiatives one can
implement in organization are:
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Break down organizational silos that dilute brand experience or


hamper collaboration; make sure that legal and HR are closely
connected with your change process.
Bring together teams with a balance of data & analytics (THINK),
consumer engagement (FEEL), content production (DO). Determine
the balance based on the task at hand
Assess and balance the digital specialist capabilities you bring inhouse with those for which you lean on agency partners, ensuring
you treat both as true partners
Create communities of digital expertise across your business and
begin paving the road to enterprise wide digital excellence

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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PROCESS
In addition to having the right structure and
people in place to support the companys
strategy, marketers must define how the actual
work happens in the organization. Well-defined
processes lead to predictability, stability and
higher quality while reducing inefficiencies. The
key is to prioritize the most critical processes to
define those that differentiate your company
from competitors and allow your company to
excel.

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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Tools

In todays digital world, decisions must be based and dealt with in


real-time. Over-performers recognize the need for iterative
improvement, capturing what works and hardcoding collaboration,
investing in excellence programs, and ensuring communication and
connectivity within the organization. The best tools allow you to
answer Yes to questions such as: does it increase
responsiveness?, does it feel organic to how we work?, does it
help us share and codify best practices?, does it foster
collaboration? and does it equip my team to win and serve as
brand ambassadors to the outside world? Practical initiatives one
can implement in organization are:
Remove barriers in the office and internal communication tools to
help employees connect and collaborate across functions
Assess digital competencies; develop on-demand learning
programs to upskill

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013