Digital Marketing

Strategy, Implementation and Practice

Eighth Edition

Part 1
Digital marketing
fundamentals

Chapter 2
Online marketplace
analysis: micro-environment

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Chapter 2 - Online marketplace analysis:
micro-environment
Learning objectives and topics
• Identify and explore elements of an
organisation’s marketing environment that have
implications for developing a digital marketing
strategy
– Introduction to online marketplace analysis
– Situation analysis for digital marketing
– The digital marketing environment

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Chapter 2 - Online marketplace analysis:
micro-environment (Continued)
Learning objectives and topics
• Review changes to business and revenue
models enabled by digital markets
– New channel structures
– Digital business models
– Digital revenue models

Case study 2. Creating the beauty that moves the world

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Reviewing complex lifecycle interactions

Source: Chaffey (2020)

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 What should be included in a situation
analysis for a plan?
• Microenvironment:
– Customer analysis
– Marketplace analysis
– Competitor benchmarking
• Wider macro-environment (Chapter 3)
• Internal review: McKinsey 7S (end Chapter 1)

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Situation analysis for digital marketing

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 Tools for insight to support situation
analysis – and assignment case studies

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Tools for insight to support situation analysis
– and assignment case studies (Continued)

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Understanding customer in digital markets
• Customer segments
• Personas
• Customer journeys include:
Search intermediaries with different keywords
Intermediaries, influencers and media or publisher sites
Destination sites and platforms

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Customer journey map

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 Defining main marketplace ‘actors’.
Examples for a category – e.g. Holidays, Travel?

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 The latest insights on
digital marketing adoption?
These presentations integrate the figures and tables from
each chapter of the book explaining core concepts for
students and lecturers.
They don’t contain the latest statistics on consumer and
business adoption of the 7Ds of digital marketing since
these change rapidly.
Sources for the latest insights from each chapter and a
downloadable presentation of the latest insights are
available from www.davechaffey.com/book-support.

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 The importance of search
Note: brand-related searches

Source: Binet (2020) (with permission)

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Modelling sales from multichannel
customer journeys

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 Consumer choice and digital influence

Customer characteristics:
– Demographic variables
– Psychographic and behavioural variables
Social media and emotions
Consumer Personas
The buying process

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Evolution of consumer behaviour

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 How do these compare to your ‘drivers’
of online purchase?

Source: Chamberlin (2010)

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What do we need to understand about B2B
audiences through insight we collect?
• Variation in organisation characteristics:
– size of company – employees or turnover;
– industry sector and products;
– organisation type – private, public, government,
not-for-profit;
– application of service – which business activities
do purchased products and services;
– Support;
– country and region.

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What do we need to understand about B2B
audiences through insight we collect?
(Continued)
• Role of the target individual in an organisation:
– role and responsibility – job title, function or
number of staff managed;
– role in buying decision – purchasing influence;
– department;
– product interest;
– demographics – age, sex and possibly social
group.

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 And B2C audiences?
• Demographic variables
– Age
– Gender
– Social group
• Psychographic variables
– Perceptions, beliefs and attitudes

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 Example of digital consumer targeting

It’s not intended to be the whole.

Sources: Aitarget University https://uni.aitarget.com/insights/la-roche-posay/; Facebook Business https://en-gb.facebook.com/business/success/la-roche-posay-aitarget

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 Drivers of digital experiences

Source: Rose et al. (2011)

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 Personas are a powerful practical tool
for creating digital experiences

Source: Created by Dave Chaffey for a B2B company project; Felix Mizioznikov/Shutterstock

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 A linear online purchase model.
How closely does this mirror reality?

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 The complexity of today’s customer journeys

Source: Google LLC (2018)

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 Competitors

The shape and nature of online competitive

markets
Competitor analysis and benchmarking

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Competitor benchmarking
techniques and tools

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 Competitor benchmarking
techniques and tools (Continued)

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 Publishers

Options shown as Green on Figure 2.4

Digital marketing intermediaries
Online intermediary sites
Need to evaluate Paid, Owned and Earned media
options on these sites.

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 Suppliers

Consider new channel structures for

reaching and influencing audiences

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New channel structures

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New channel structures
(Continued)

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A tool for summarising business models

Source: Smart Insights (Marketing Intelligence) Ltd

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A tool for calculating online publisher revenue

Source: Smart Insights (Marketing Intelligence) Ltd

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 Case study 2. Creating the beauty that
moves the world
Questions
1) Discuss how digital tools and technology are driving the
development of the L’Oréal Group.
2) Mass personalisation has the potential to add value for
customers. Explain how each of L’Oréal’s divisions
benefit from this focus on the individual customer.
3) Consider the extent to which the macro- and micro-
environment influences have shaped L’Oréal’s Digital
First strategy.
4) Choose one of the L’Oréal divisions and find out more
about how it is currently utilising digital technologies and
tools to meet the company’s corporate goals.
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