CHAPTER 2

Digital Marketing

Week 2 7 or 10 March 2017

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-1
 Lecture outline

Time Activity
11.00-11.25am Lecture
11.25-11.35am Break
11.35-11.55am Lecture
11.55-12.10pm Summary MCQs
12.10-12.15pm Tutorial exercise
12.15-12.20pm Lecture registration

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-2
Week Date Lecture Tute Textbook Assessment

1 27 February Overview of Marketing Chapter 1 Book exercise 1

Introduction and team Book exercise 2

2 6 March Digital Marketing Chapter 2
forming Tutorial exercise 1

Book exercise 3
3 13 March Marketing Ethics, Sustainability and CSR Exercise 1 discussion Chapter 3
Tutorial exercise 2

Book exercise 4
4 20 March Analysing the Marketing Environment Exercise 2 discussion Chapter 4
Tutorial exercise 3

Book exercise 5
5 27 March Consumer Behaviour Exercise 3 discussion Chapter 5
Tutorial exercise 4

6 3 April Segmentation, Targeting and Positioning Exercise 4 discussion Chapter 6 Book exercise 6

7 10 April Marketing Research Chapter 7 Book exercise 7

Week off

8 24 April Product and Branding Decisions Team project work Chapter 8 Book exercise 8

9 1 May Developing New Products Team project work Chapter 9 Book exercise 9

10 8 May Services: The Intangible Product Team project work Chapter 10 Book exercise 10

11 15 May Pricing Concepts for Establishing Value Team presentations Chapter 11

Team presentation
Integrated Marketing Communications,
12 22 May Team presentations Chapter 13
Advertising and PR

13 29 May Summary

10 – 24 June Exam
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic MarketingLecture 2-3 3-12.
1e participation assessed Weeks 1-13. Tutorial participation assessed weeks
 Digital Marketing
LO
2.1 Recognise the distinct digital consumer elements.

LO
2.2
Understand the types of digital channels.

LO Describe the 4E framework of social media

2.3
marketing.
LO
2.4 Understand the important role of mobile applications.

LO Understand the components of a digital marketing

2.5
strategy.
LO
2.6 Recognise the future directions of digital marketing.

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-4
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-5
 What is so unique about
digital consumers?
There are three broad categories:
• Dominant digital - users where the internet
is an integral force in their lives
• Hybrid - users who will use good
technology solutions where available
• Reluctant - users who use it but not actively

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-6
 Empowering Consumers
• Consumers have unprecedented
access to information about products,
prices and competition
– As a result, consumers are more
demanding, less forgiving and want
appropriate relevant, individualised
interaction
• 'Active' consumers

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-7
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-8
 Eword of Mouth (eWOM)
Electronic word of mouth occurs outside the control
of the firm

It can be seen as a positive aspect because consumers

have the ability to engage with other consumers

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-9
 The Digital Channels
• Websites
– Usually the main digital channel
– Good websites are interactive, engaging and
have social resources
• Search Engines
– These are often set as home pages
– It's more important for firms to have relevant
key words and content with good hyperlinks
– Search engine optimisation

continued
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-10
 The Digital Channels
• Email
– One of the most powerful marketing tools
– 20% of emails in Australia don't reach their
intended recipient
– Often used as a 'confirmation' for digital
activity such as buying goods, booking
services, etc
• Mobile Phones
– The biggest growth area in digital marketing

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-11
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-12
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-13
 The 4E Framework for
Social Media

Excite
Excite

Educate
Educate Engage
Engage

Experience
Experience

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-14
 Excite the Customer

Offer must be relevant to the

targeted customer

Relevancy can be achieved by

providing personalised offers

Chris Ryan/OJO Images/Getty Images.

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-15
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-16
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-17
 Educate the Customer
• Provide potential customers with the
opportunity to learn about the value
proposition and benefits
• This information may not be new but it
may also remind
• Sites such as Blogger, Twitter, YouTube
and Reddit can all aid in this

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-18
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-19
 Experience the Product

Provide information about a firm's goods and

services, how they work, how to use them and
where they can be obtained

Simulate real experiences

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-20
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-21
 Engage the Customer
Action, loyalty and commitment

Positively engaged consumers lead to more

profitability

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-22
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-23
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-24
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-25
 BREAK

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-26
 Going Mobile
• 97% of consumers access social media
through their computers, 37% via mobile
phones, 3% through tablets and 2% via
e-readers
• These consumers are generally younger and
wealthier than those who own older mobile
technology
• Such behaviour has resulted in the growth of
price check and fashion apps
• Gamification
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-27
 Customer Engagement
Listening and responding

Involving

Empowerment

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-28
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-29
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-30
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-31
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-32
 Customer Data Management
• Social CRM strategy
– CRM is not a new concept
– The sheer amount of social media
information can lead to 'data overload’
– 'Big data' is gaining popularity

• Social media tools assist in managing

large amounts of information

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-33
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-34
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-35
The Future of Digital Marketing
• Virtual worlds/augmented reality
– Move from 2D to 3D
– The importance of the consumers' virtual
persona
• Wearable technology
– 'Cyborg' consumerism

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-36
 Internet of Things

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-37
 Internet of Things

Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd

Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-38
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-39
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-40
 Summing Up
• There are dominant, hybrid and
reluctant digital consumers, all with
different needs.
• The popularity of social and digital
media means that consumers are now
in control and can compare prices and
product features globally while
demanding better service as a result of
word of mouth.
continued
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-41
 Summing Up
• Integrating marketing communications
must now take into account a range of
digital channels such as websites,
search engines, email, social media
and smart phones
• The 4E framework recognises that
marketers must excite, educate,
experience and engage with consumers
within the digital environment
continued
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-42
 Summing Up
• Mobile technology is the dominant focus for
digital marketing with many people using
price, fashion or location apps.
• Social customer relationship marketing
(CRM) is a strategy that focuses on customer
engagement via listening and responding,
involving and empowering consumers.
• Data management as a means to understand
consumer behaviour on digital channels is
also an important tool.
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-43
 Lecture participation
• Lecture participation is worth 10%

• You have to register your participation in each lecture

to get the marks
• Access Eventbrite software via LMS or at http://
mktg1203l2a.eventbrite.com.au
http://mktg1203l2b.eventbrite.com.au
• You need password, which is provided in class
• Registration location is also recorded
Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
Grewal, Levy, Mathews, Harrigan & Bucic Marketing 1e 2-50