Chapter 8 - Digital Marketing

Slide 8.
Chapter 8
Digital marketing
Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 8.2
Learning outcomes
• Assess the need for separate digital business

and digital marketing strategies
• Create an outline digital marketing plan intended
to implement the digital marketing strategy
• Distinguish between marketing communication
characteristics of traditional and new media
Slide 8.3
Management issues
• How do we integrate traditional marketing

approaches with digital marketing?
• How can we use electronic communications to
differentiate our products and services?
• How do we redefine our marketing and
communications mixes to incorporate new
media?
Slide 8.4
Digital 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 profitably.
• Which e-marketing tools can assist?

– Web, e-mail, databases, wireless and digital
television
Slide 8.5
How do e-tools support marketing?
• Identifying
–
–
• Anticipating
–
–
• Satisfying
–
–
• Profitably
–
– Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6th edition © Marketing Insights Limited 2015
Slide 8.6
Digital marketing operational processes
• Three main operational processes in digital

marketing
• Customer acquisition: attracting visitors to a website or
promoting a brand through reaching them via search engines or
advertising on other sites.
• Customer conversion: engaging site visitors to achieve the
outcomes the site owner seeks, such as leads, sales…etc.
• Customer retention and growth: encouraging repeat
usage of digital channels and, for transactional sites, repeat sales.
Slide 8.7
Figure 8.1 The operational and management processes of digital marketing

Source: E-consultancy (2008).
Slide 8.8
Figure 8.2 The digital marketing plan in the context of other plans
Slide 8.9
Digital marketing
 Any use of technology to achieve
marketing objectives:
Inbound marketing
Content marketing
Slide 8.10
Inbound marketing
 Advertising wastage is reduced
 Can be used with search marketing and
content marketing
 Less control (major problem)
 So, let’s see content marketing>>
Slide 8.11
Content marketing
 The management of text, rich media,
audio and video content aimed at
engaging customers and prospects to
meet business goals published through
print and digital media;
including web and mobile platforms, which is
repurposed and syndicated to different
forms of web presence such as publisher
sites, blogs, social media and comparison
sites.
Slide 8.12
Content management
 Elements to plan and manage:
Content engagement value
Content media
Content syndication
Content participation
Content access platform
Slide 8.13
Content engagement value

 Which types of content will engage the
audience?
Simple product info
Guide to buy the product
Game to engage the audience
Slide 8.14
Content media
 Plain text
 Rich media (flash)
 Mobile app.
 Audio
 Video
 E-books
Slide 8.15
Content syndication
 Can be syndicated to different type of
sites through feeds or other formats.
 Embedded in sites through widgets.
Slide 8.16
Content participation
 Today’s content is not static anymore
 It should allow commenting, rating,
reviews…etc.
Slide 8.17
Content access platform

 Planning needs to consider different
access platforms:
Mobile
Desktop
Tablet
Paper!
Slide 8.18
Figure 8.6 Content Marketing Matrix

Source: Smart Insights (2012).
Slide 8.19
Digital marketing plan

 In addition to the digital business strategy,
a digital marketing plan is needed.
 Digital marketing plan focus on the sell side
specific objectives
SOSTAC framework:
○ Situation
○ Objectives
○ Strategy
○ Tactics
○ Action
○ Control
Slide 8.20
Figure 8.7 SOSTAC® – a generic framework for digital marketing planning

Source: PR Smith’s SOSTAC® Planning Model (1990).
Slide 8.21
Situation analysis
 The aim is to understand the current and
future environment in which the
company operates.
 See figure 8.8 >>
Slide 8.22
Figure 8.8 Inputs to the digital marketing plan from situation analysis
Slide 8.23
Demand analysis questions
• What percentage of customer businesses have access to the

Internet?
• What percentage of members of the buying decision in these
businesses have access to the Internet?
• What percentage of customers are prepared to purchase your
particular product online?
• What percentage of customers with access to the Internet are
not prepared to purchase online, but are influenced by web-
based information to buy products offline?
• What is the popularity of different online customer
engagement devices such as Web 2.0 features such as blogs,
online communities and RSS feeds?
• What are the barriers to adoption amongst customers of
different channels and services and how can we encourage
adoption?
Slide 8.24
Figure 8.9 Example SWOT analysis
Slide 8.25
Figure 8.9 Example SWOT analysis (Continued)
Slide 8.26
Competitor analysis
• Due to the dynamic nature of e-commerce,

monitoring competitors becomes very important.
• Benchmarking is essential to monitor
competitors activities and fine-tune the
organizational performance
Slide 8.27
Benchmarking organisational
e-marketing capabilities
• Financial performance – current profitability of e-channel
activities
• Marketplace performance – market share and sales trends
and significantly the proportion of sales achieved through the
Internet.
• Business and revenue models – do these differ from other
marketplace players?
• Marketing communications techniques – is the customer
value proposition of the site clear? Does the site support all
stages of the buying decision from customers who are
unfamiliar with the company through to existing customers?
Are special promotions used on a monthly or periodic basis?
Beyond the competitor’s site, how do they make use of
intermediary sites to promote and deliver their services?
Slide 8.28
Benchmarking organisational
e-marketing capabilities (Continued)
• Services offered – what is offered beyond
brochureware? Is online purchase possible,
what is the level of online customer support and
how much technical information is available?
• Implementation of services – these are the
practical features of site design such as
aesthetics, ease of use, personalisation,
navigation and speed.
• The 7Ps
Slide 8.29
Figure 8.11 Benchmark comparison of corporate websites

Source: Bowen Craggs & Co (www.bowencraggs.com).
Slide 8.30
Intermediary or influencer
analysis
 Identifying relevant intermediaries;
publishers, media sites, horizontal and
vertical portals…etc.
 Can develop the relationship to strategic
partnership
 How competitors are represented on
intermediaries
 How the marketplace is operating;
disintermediation, reintermediation…etc.
Slide 8.31
Internal marketing audit

 Assess the capability of the resources of the
company to deliver digital marketing in comparison
with competitors
 The audit will review following elements of an e-
commerce site:
Business effectiveness; site contribution to
revenue
Marketing effectiveness; leads, sales, cost of
acquiring new customers, retention, market
share, engagement and loyalty, service
Internet effectiveness; unique visitors, page
impressions, value proposition of the site.
Slide 8.32

Slide 8.33
Another approach to goal setting
• Business effectiveness. Contribution of site to

revenue, profitability and any indications of the
corporate mission for the site.
• Marketing effectiveness. These measures may

include:
– leads; sales; retention; market share; brand
enhancement and loyalty.
• Customer service
– These measures will be assessed for each of the
different product lines delivered through the web site.
Slide 8.34
Another approach to goal setting

(Continued)
• Internet effectiveness. These are specific
measures that are used to assess the way in
which the web site is used, and the characteristics
of the audience
– Such measures include specialist terms such as
– hits and
– page impressions
– also more typical techniques such as
– focus groups and
– questionnaires to existing customers.
Slide 8.35
Example Internet marketing objectives within the balanced scorecard

Table 8.4
framework for a transactional e-commerce site
Slide 8.36

Slide 8.37
Table 8.5Summary of typical focus for main types of e-commerce-related strategic

initiatives
Slide 8.38

initiatives (Continued)
Slide 8.39

initiatives (Continued)
Slide 8.40
Figure 8.14 Stages in target marketing strategy development
Slide 8.41
Online value proposition
• A clear differentiation of the proposition from

competitors based on product features or
service quality.
• Target market segment(s) that the proposition
will appeal to.
• How the proposition will be communicated to
site visitors and in all marketing
communications. Developing a tag line can help
this.
Slide 8.42
Online value proposition (Continued)
• How the proposition is delivered across different

parts of the buying process.
• How the proposition will be delivered and
supported by resources – is the proposition
genuine? Will resources be internal or external?
Slide 8.43
Example OVPs
• ‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com)

• ‘Earth’s biggest selection’. Amazon (www.amazon.com)
• ‘Search the largest inventory of cars and trucks on the
Internet. More than 1.5 million listings, updated daily’
(www.autotrader.com)
• The Citibank site design (www.citibank.com) uses a
range of techniques to illustrate its core proposition and
OVP. The main messages are
– Welcome to Citibank: The one-stop solution for all your
financial needs
– Look for a product or service; Learn about a financial
product; Find a location.
Slide 8.44
Table 8.7 A range of targeting and segmentation approaches for a digital campaign
Slide 8.45
The extent to which different types of segmentation variables tend to be

Figure 8.15
predictive of response
Slide 8.46

Slide 8.47
Figure 8.20 The elements of the marketing mix
Slide 8.48
Issues with varying the mix online
• Do we vary the mix online or replicate offline?

• Is the offer clear – brand proposition, online
offer?
• Is online differentiation defined?
• Is online differentiation communicated?
Slide 8.49
Online mix options
• Product
–Extend range (Tesco)
–Narrow range (WH Smith iDTV)
–Online-only products (banks)
–Develop new brand (Egg)
–Migrate existing brand (HSBC)
–Partner with online brand (Waterstones and
Amazon).
Slide 8.50
Online mix options (Continued)
• Price
– Differential pricing:
• Reduce online prices due to price transparency
and competition (easyJet)
• Maintain price to avoid cannibalisation of offline
sales (Dixon)
– New pricing options (software, music):
• Rental
• Pay per use
• Reverse auctions (B2B)
• Dynamic pricing (Concert tickets).
Slide 8.51
• Place = avoiding channel conflicts

– Disintermediation – sell direct
– Reintermediation – partner with new intermediaries
– Countermediation:
• Form new intermediaries
• Partner with existing intermediaries
• Distance from intermediaries
(Abbey National).
Slide 8.52
• Promotion
– Selective use of new online tools for different
stages of the buying process and customer
lifecycle
– Online only campaigns
– Integrated campaigns – incorporating online tools
into communications mix.
Slide 8.53
• Service
– People
• Automate – use web self-service,
offer customer choice
– Process
• Change process for service – contact strategies
– Physical evidence
• Site design – differentiate or support brand
• Fulfilment quality.
Slide 8.54
Branding
Leslie de Chernatony and Malcolm McDonald

described ‘brand’ in their classic 1992 book, Creating
Powerful Brands, as:
‘An identifiable product or service augmented

in such a way that the buyer or user perceives relevant
unique added values which match their needs most
closely. Furthermore, its success results from being
able to sustain these added values in the face of
competition.’
Slide 8.55
Aaker – brand equity
• Brand awareness
• Perceived quality
• Brand associations
• Brand loyalty
How can these be enhanced online for the B2C
Company?
Slide 8.56
Table 8.9 Traditional measures of brand equity and online measures of brand equity
Slide 8.57
Slide 8.58
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Slide 8.

• Assess the need for separate digital business

• How do we integrate traditional marketing

• The definition of marketing by the Chartered

Marketing is the management process

• Which e-marketing tools can assist?

How do e-tools support marketing?

Digital marketing operational processes

• Three main operational processes in digital

Figure 8.1 The operational and management processes of digital marketing

 So, let’s see content marketing>>

Content engagement value

Content access platform

Figure 8.6 Content Marketing Matrix

Digital marketing plan

Figure 8.7 SOSTAC® – a generic framework for digital marketing planning

 See figure 8.8 >>

Demand analysis questions

• What percentage of customer businesses have access to the

Figure 8.9 Example SWOT analysis

Figure 8.9 Example SWOT analysis (Continued)

• Due to the dynamic nature of e-commerce,

Figure 8.11 Benchmark comparison of corporate websites

Internal marketing audit

Figure 8.7 SOSTAC® – a generic framework for digital marketing planning

Another approach to goal setting

• Business effectiveness. Contribution of site to

• Marketing effectiveness. These measures may

Another approach to goal setting

Example Internet marketing objectives within the balanced scorecard

Figure 8.7 SOSTAC® – a generic framework for digital marketing planning

Table 8.5Summary of typical focus for main types of e-commerce-related strategic

Table 8.5Summary of typical focus for main types of e-commerce-related strategic

Table 8.5Summary of typical focus for main types of e-commerce-related strategic

Figure 8.14 Stages in target marketing strategy development

Online value proposition

• A clear differentiation of the proposition from

Online value proposition (Continued)

• How the proposition is delivered across different

• ‘Compare. Buy. Save’. Kelkoo (www.kelkoo.com)

The extent to which different types of segmentation variables tend to be

Figure 8.7 SOSTAC® – a generic framework for digital marketing planning

Figure 8.20 The elements of the marketing mix

Issues with varying the mix online

• Do we vary the mix online or replicate offline?

Online mix options

Online mix options (Continued)

Online mix options (Continued)

• Place = avoiding channel conflicts

Online mix options (Continued)

Online mix options (Continued)

Leslie de Chernatony and Malcolm McDonald

‘An identifiable product or service augmented

Aaker – brand equity

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