You are on page 1of 41

Slide 4.

Part 2
Digital marketing strategy
development
Chapter 4
Digital marketing strategy

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

Slide 4.2

Learning objectives
What approaches can be used to create digital
marketing strategies?
How does digital marketing strategy relate to
other strategy development?
What are the key strategic options for digital
marketing?

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

Slide 4.3

Questions for marketers


Relate digital marketing strategy to marketing
and business strategy
Identify opportunities and threats arising from
digital technology platforms
Evaluate alternative strategic approaches for
using digital platforms

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

Slide 4.4

Q. What are organisational problems if no


E-marketing strategy?

Underestimated demand for online services


Market share loss
Resource duplication
Insufficient resource
Insufficient customer data
Efficiencies available through online marketing
Opportunities for applying online marketing tols
Changes required to internal IT systems
Inadequate tracking
Senior management support limited

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

Slide 4.5

Michael Porter on the Internet


The key question is not whether to deploy
Internet technology companies have no choice
if they want to stay competitive but how to
deploy it.

Porter, M. (2001) Strategy and the Internet,


Harvard Business Review, March 2001, 6278.
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

Slide 4.6

What is a digital marketing strategy?


What is strategy?
Defines how we will meet our objectives
Sets allocation of resources to meet goals
Selects preferred strategic options to
compete within a market
Provides a long-term plan for the development of
the organisation

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

Slide 4.7

Digital marketing strategy essentials


Digital marketing strategy is a channel strategy
Objectives for online contribution %
- sales, service, profitability should drive our strategy
Digital marketing strategy defines how we should:
1.Communicate benefits of using this channel
2.Prioritise audiences targeted through channel
3.Prioritise products available through channel
4.Hit our channel leads & sales targets
Acquisition, Conversion, Retention

Channel strategies thrives on differentials


BUT, need to manage channel integration

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

Slide 4.8

Figure 4.1

Internal and external influences on digital marketing strategy


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

Slide 4.9

Summary of typical focus for main types of e-commerce-related


strategic initiatives
Table 4.1

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

Slide 4.10

Figure 4.2

HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)


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

Slide 4.11

Figure 4.3

Hierarchy of organisation plans including e-marketing plans


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

Slide 4.12

The SOSTAC planning framework applied to digital Digital marketing strategy


development
Figure 4.4

Source: Chaffey and Smith (2008)

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

Slide 4.13

Figure 4.5

Dynamic e-business strategy model

Source: Adapted from description in Kalakota and Robinson (2000)

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

Slide 4.14

Table 4.2

Summary of approaches used to support emergent strategy


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

Slide 4.15

Levels of website development in: (a) the information to transaction model and (b) the transaction to
information model of Quelch and Klein (1996)
Figure 4.6

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

Slide 4.16

Capability maturity model of e-commerce adoption based on


Econsultancy (2008) research
Table 4.3

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

Slide 4.17

Corporate stage model

Source: E-consultancy (2005) report Managing an E-commerce team Author: Dave Chaffey

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

Slide 4.18

A generic digital channel-specific SWOT analysis showing typical


opportunities and threats presented by digital media
Figure 4.7

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

Slide 4.19

An example of an digital channel specific SWOT for an established multichannel


brand showing how the elements of SWOT can be related to strategy formulation
Figure 4.8

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

Slide 4.20

Figure 4.9

Will Wynne, Arena Flowers (www.arenaflowers.com)

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

Slide 4.21

Internet marketing benefits


Intangible benefits

Tangible benefits
Increased sales from new sales
leads giving rise to increased
revenue from:
new customers, new markets
existing customers (repeatselling)
existing customers (crossselling)

Cost reductions from:


reduced time in customer
service
online sales
reduced printing and
distribution costs of
marcomms

Corporate image communication


Enhance brand
More rapid, more responsive
marketing
communications including PR
Improved customer service
Learning for the future
Meeting customer expectations
Identify new partners, support
existing partners
Better management of marketing
information and customer
information
Feedback from customers on
products

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

Slide 4.22

Grid of product suitability against market adoption for transactional


e-commerce (online purchases)
Figure 4.10

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

Slide 4.23

An example of a performance measurement system for an


commerce electrical goods retailer
Figure 4.11

e-

Source: Based on Friedlein (2002)

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

Slide 4.24

An example of the relationship between objectives, strategies and


performance indicators
Table 4.7

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

Slide 4.25

Figure 4.12

Using the Internet to support different organisational growth strategies

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

Slide 4.26

Figure 4.13

Smile (www.smile.co.uk)

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

Slide 4.27

Figure 4.14

Dell Ideastorm (www.ideastorm.com)

Source: 2012 Dell Inc. All Rights Reserved.

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

Slide 4.28

Common online targeting options

Brand loyalists convert online


Not brand loyal encourage trial
Most profitable deepen relationships
Larger companies (B2B)
Smaller companies(B2B)
Key members of the buying unit (B2B)
Difficult to reach using other media

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

Slide 4.29

Figure 4.15

Stages in target marketing strategy development

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

Slide 4.30

Figure 4.16

Dell Singapore site segmentation

Source: http://www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. 2012Dell Inc. All Rights Reserved.

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

Slide 4.31

Figure 4.17

Customer lifecycle segmentation

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

Slide 4.32

Figure 4.18

Euroffice e-mail (www.euroffice.co.uk)

Source: Adapted from the company website press releases and Revolution (2005a)

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

Slide 4.33

Figure 4.19

Alternative positionings for online services

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

Slide 4.34

WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates its


proposition
Figure 4.20

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

Slide 4.35

Strategic options for a company in relation to the importance of the


Internet as a channel
Figure 4.21

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

Slide 4.36

Figure 4.22

Flow chart for deciding on the significance of the Internet to a business

Source: After Kumar (1999)

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

Slide 4.37

Figure 4.23

Influences on customers of multichannel decision making

Source: adapted from Dholakia et al. (2010)

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

Slide 4.38

Channel coverage map showing the companys preferred strategy for


communications with different customer segments with different value
Figure 4.24

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

Slide 4.39

Figure 4.25

Options for location of control of e-commerce

Source: Econsultancy (2008)

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

Slide 4.40

Figure 4.26

Example of riskreward analysis

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

Slide 4.41

Table 4.9

Online performance management grid for an e-retailer


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