Digital Marketing Strategy: SOSTAC Model

This presentation introduces what we see as the fantastic potential of integrated

digital marketing for engaging audiences and its risks. It introduces the difference
between e-commerce, digital business and digital marketing; the alternative digital
communications channels; the dangers of sloppy digital marketing; how to present
a business case for increasing your online activities, and the benefits of doing so –
Sell, Serve, Speak, Save and Sizzle.

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1.1 Introduction

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1.2 Situation – the connected world

Digital marketing platforms

MARKETPLACE
• Desktops, laptops and notebooks

• Mobile phones and tablets

• Other hardware
Electronic marketspace

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1.2 Situation – the connected world

Need for analysing and

Digital activity from
meeting demand for
consumers
online services
Tools for assessing your online marketplace:
1. Google insights tools 5. Internet or Interactive Advertising Bureau (IAB)
2. SimilarWeb 6. Government sources
3. Nielsen 7. Non-government organizations
4. ComScore 8. IMRG

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1.3 Situation – B2C, B2B, C2B and C2C

Types of online presence

Chaffey & Ellis (2015)

1. Transactional e-commerce site

2. Services-oriented relationship
building or lead-generation web
site
3. Brand-building site
4. Portal of media site
5. Social network or community site

Figure 1.3 Options for online communications between an organization and its customers
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1.4 Situation – digital marketing definitions

E-commerce
Selling online and the ability to

Customers & Suppliers

transact online

Dynamic dialogue
+ = Digital marketing
Customer driven discipline

Digital business
Involves the automation of all the
business processes in the value
chain

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1.4 Situation – digital marketing definitions

Integrated digital marketing activities

Activities that require planning,
management and optimization for online
marketing to be competitive and
maximize ROI.

Figure 1.5 Eight key digital marketing activities to manage in all organizations

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1.4 Situation – digital marketing definitions
Right touching = every customer interaction to a communication should be followed up by a series of
relevant communications delivered via the right combination of channels to elicit a response or further
dialogue

Checklist for right touching

Delivering relevant recommendations
Search marketing
for retention and growth

Behavioural targeting or online advertising

Following up on customer product or
promotion interest
Multi-touches across different digital media
channels for acquisition Getting the frequency right

Customer lifecycle model and welcome Getting the channel right

strategy
Increasing online attrition Getting the offer right
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1.4 Situation – digital marketing definitions
Marketing Principles
• Get close to customers,
listen to them
• Involve them
• Serve them Digital marketing?
• Add value
Identify,
• Find the best ones
Anticipate,
• Nurture them into lifelong Satisfy customers needs
customers and advocates
efficiently
• Test, test, measure and
improve
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1.5 Situation – sloppy digital marketing
Minimizing the impact of customer complaints
• The customer service operation is equipped to monitor and
engage with a targeted spectrum of media.

• Companies fully understand where, why and how their

customers are using social media before making any social
media marketing changes.
• A balance is struck across different types of media –
telephone, email, web, social, network and mobile.

• The power of online communities is recognized, and

customers are encouraged to help each other.

• Relationships are nurtured with advocates who wield

particular influence on the internet.

• Specialist tools are used to measure the impact of

Figure 1.7 Digital marketing sloppiness causes high attrition rates customers’ online activity.

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1.6 Objectives The 5S – digital marketing objectives
Benefit of digital How it is delivered Examples
marketing

Sell – Grow sales Through wider distribution, promotion, sales Achieve 10% of sales online

Through giving customers extra benefits Increase conversion rate

Serve – Add value online or inform product development by 5%
through online dialogue and feedback.

Grow email coverage to 50%

Speak – Get closer to By tracking them, asking them questions, of current customer database
customers creating a dialogue, learning about them.

Through online email communications, sales and Generate 10% more sales for
Save – Save costs service transactions to reduce staff, print and same communications budget
postage costs.

Sizzle – Extend the Through providing a new proposition and new Add two new significant
brand online experience online while at the same time enhancements to the customer online
appearing familiar. experience
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1.6 Objectives

Figure 1.8 Ultralace, source: www.ultralase.com

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1.7 Objective – sell – using the internet as a sales tool

Direct online revenue contribution

To increase this %, using mixed-mode or

multichannel selling is a must
% of sales transactions
completed online

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1.7 Objective – sell – using the internet as a sales tool

Figure 1.9 ROPO matrix showing main cross-channel customer behaviours Source: Google (2010)

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1.7 Objective – sell – using the internet as a sales tool

Tagging value events to assess the influence of a

Indirect online revenue contribution web site and digital channels on sales

• Sale
• Lead
• Newsletter
% of sales influenced by • Searches
digital communications • Product page views
• Product document downloads

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1.7 Objective – sell – using the internet as a sales tool
The Ansoff matrix

Selling what to whom?

Figure 1.10 Online opportunities for product and market innovation

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1.8 Objective – serve – using the internet as a customer-
service tool
Measures of online customer engagement
Engagement metric Engagement tactic
1. % of non-home page entry visits Use run-of-site OVP messages
2. Bounce rate Use a run-of-site sign up
3. Duration Use heatmaps or overlays to assess management
4. Marketing outcomes Get your scent right
5. Micro or step conversation rates Interactive sales advisers
6. Brand search-term strength Generate awareness
7. Email activity level Refined touch strategy
8. Define activity levels or hurdle rates (for Personalize by activity or lifecycle of content in web or email
different activities pods
9. Emotional response Mutivariate testing
10. Outcomes Use secondary navigation to highlight next steps
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1.8 Objective – serve – using the internet as a customer-service
tool

Adding value to B2B services – Seybold (1999)

“Let customers help themselves”

e.g. delivery of product, after-sales support

“Help customers do their jobs”

e.g. give content about best practice to help professionals
complete their day-to-day work and develop their
professional careers

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1.9 Objective – speak – using the internet as a communications
tool
Inbound marketing
Pull mechanism: in Digital marketing,
the contact with the brand is initiated
by the customer
Good visibility from companies in
search engines is essential

Content marketing
1. Content engagement value
2. Content media
3. Content syndication
4. Content participation
Figure 1.11 Categories of media: paid, owned, earned
5. Content access platform

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1.9 Objective – speak – using the internet as a
communications tool

Key digital media channels

1. Search engine marketing (SEM)

2. Online PR
3. Online partnerships
4. Interactive advertising
5. Opt-in email
6. Social media marketing

Figure 1.12 Inbound marketing infographic Source: First 10 (2012)

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1.10 Objective – save – using the internet for cost reduction
What will catch the financial director’s ear together with “sell”?

Profitability Savings emerge:

SAVING (money, time, effort) - Digital media channels
- Customer service
- Transactional costs
- Print and distribution

Cost Per Acquisition (CPA) – crucial in controlling media, used to control the level of bids
CPA = (100/conversion rate) x Cost Per Click
CPA = Cost Per Click/Conversion rate

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1.11 Objective – sizzle – using the internet as a brand-building
tool

SIZZLE To add extra value, extend the experience and enhance the image

What experience could a web site deliver that would be truly unique
and representative of the brand?
Reality
Perception

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1.12 Introduction to digital marketing strategy

Digital marketing strategy

- Clear prioritization to how the channel
should be used
- Identify target markets, positioning, OVP,
choice of mix of digital media channels to
channel strategy where electronic
acquire new customers and contact
channels and digital media support
strategies to welcome and develop existing
other communications and distribution
customers
channels.

Creating differential value

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1.12 Introduction to digital marketing strategy
• Crystal clear objectives What you want to achieve online

• Target markets, positioning and propositions

• Optimum mix of tactical e-tools Web site, banners ads, etc

E-strategy
• Evolutionary stage What stage you want to be at

• Online marketing mix Particularly service levels

• Dynamic dialogue Ongoing with the customer

• Integrated database Recognize and remember each customer

whether via web or telephone

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1.12 Tactics, Action and Control
Tactics are the details of strategy.

Tactical e-tools include the web site, opt-in

email, banner ads, virtual exhibitions and
sponsorship.

Actions include project planning and

implementation, while control involves
assessing the results against objectives.

Control also includes competitive intelligence.

Figure 1.13 Using the Smart Insights RACE Planning framework to link business objectives to
digital marketing tactics

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summary
• PR Smith’s SOSTAC® –Situation analysis, Objectives, Strategy, Tactics, Actions and Control.

• The connected world connects businesses to consumers using an ever-increasing range of platforms.

• Digital marketers need to assess the particular relevance of B2C, B2B, C2C, C2B marketing to their
organization
• Digital marketing can assist in all elements of marketing – providing new techniques to identify,
anticipate and satisfy customer needs efficiently.
• Risk assessment can minimize the risk of sloppy digital marketing.
• Clear objectives using well-directed resources and measurements are required.
• The 5S objectives are Sell, Serve, Speak, Save and Sizzle.
• E-strategy entails defining approaches to achieve digital marketing objectives using a range of tactical
e-tools and a revised marketing mix.
• Smart Insights RACE = Reach Act Convert Engage

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