CH 17 PPTaccessible

Principles of Marketing
Nineteenth Edition
Chapter 17
Digital Marketing
Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved
Learning Objectives
17.1 Define digital marketing and discuss its rapid growth
and benefits to customers and companies.
17.2 Discuss the consumer and market research required to
design an effective digital marketing campaign.
17.3 Discuss the different digital channels and media
and explain how companies employ them to create an
omni-channel marketing strategy
17.4 Identify and discuss the public policy issues presented
by digital marketing.
COCA-COLA: Making the Brand a
Part of the Customer’s Story
Coca-Cola’s “Real Magic” campaign provides a platform for
engaging customers across a broad range of modern digital
media. The new “Hug” logo visual identity embraces and
frames moments of magic across Coca-Cola’s multiple
communications platforms.
emka74/Shutterstock
The Digital Marketing Process
Figure 17.1 The Digital Marketing Process
Learning Objective 1
Define digital marketing and discuss its rapid growth and
benefits to customers and companies.
Understanding Digital Marketing
(1 of 4)
Digital marketing
The use of technology-intensive platforms such as the
internet, mobile networks and devices, and social media to
engage directly with carefully targeted individual consumers,
consumer communities, and businesses.
(2 of 4)
The New Digital Marketing Model
Digital marketing serves as a complete business model.
Digital and direct to consumer marketing as a business model:
Online travel company Expedia Group has successfully built its
entire approach around digital marketing. Its Travelocity.com unit
and the famous Roaming Gnome make it easy for customers to
“Wander Wisely.”
Travelocity
(3 of 4)
Benefits of Digital Marketing Digital real-time marketing:
to Buyers and Sellers Fast-food marketer Wendy’s is
• Convenience known for its skillful use of
social media to spark an
• Buyers benefit from
ongoing real-time dialogue with
increased
the brand’s fans.
• price competition
• Brand engagement and
community
• Interactive and immediate
Deutschlandreform/Shutterstock; Gary Armstrong
(4 of 4)
Benefits of Digital Marketing—Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
• Opportunities for real-time marketing
• Linking brands to important moments and trending events
Discuss the consumer and market research required to
design an effective digital marketing campaign.
Preparing for a Digital Marketing
Campaign (1 of 3)
Knowing the Digital Consumer Figure 17.2 A Digital Consumer
Digital consumer personas— Persona
detailed, nuanced, and tangible
representations of prototypical
consumers to be targeted by the
digital campaign.
javi_indy/
Shutterstock
Campaign (2 of 3)
Understanding Consumer Omni-Channel Navigation Behavior
Consumer omni-channel navigation behavior
The consumer’s use of multiple marketing channels, both digital
and nondigital, across stages of the consumer buying decision
process.
Omni-channel navigation
behavior: To effectively market to
consumers with the right
marketing content at the right
place and time, marketers must
understand which channels
consumers are using at each
stage of the customer journey. Milkovasa/Shutterstock
Campaign (3 of 3)
Using Experimentation to Understand What Works
With online and mobile media, marketers can quickly and easily
manipulate treatments across customer groups with readily
measurable results.
Digital marketing is very friendly
to experimentation. Netflix
constantly uses A/B testing to
assess the effectiveness of
different online presentation
formats across user segments.
sitthiphong/Shutterstock
Discuss the different digital channels and media and explain
how companies employ them to create an omni-channel
marketing strategy.
Employing Digital Channels in an
Omni-Channel Strategy (1 of 4)
Online Marketing
Online marketing is marketing via the internet using
company websites, online ads and promotions, email, online
video, and blogs.
Marketing Websites engage consumers to move them
closer to a direct purchase or other marketing outcome.
Branded Community Websites present brand content that
engages consumers and creates customer community
around a brand.
Online Marketing
Online advertising is advertising that appears while consumers
are browsing online and includes display ads, search-related ads,
online classifieds, and other forms.
• Online display ads are digital ads that appear anywhere on an
internet or mobile user’s screen and are often related to the
information being viewed.
• Search-related advertising Text- and image-based ads and
links that appear atop or alongside search engine results on
sites such as Google, Yahoo!, and Bing.
Email marketing involves sending highly targeted, highly
personalized, relationship-building marketing messages via email.
Spam is unsolicited, unwanted commercial email messages.
Online Marketing
Online video marketing involves posting digital video content on
brand websites or social media sites such as YouTube, Facebook,
and others.
Viral marketing is the digital version of word-of-mouth marketing:
videos, ads, and other marketing content that are so infectious
that customers will seek them out and pass them along to friends.
Viral marketing: Many marketers
work to create videos, ads, and
other marketing content that are
so infectious that customers will
seek them out and pass them
along to their friends.
Rido/Shutterstock
Online Marketing
Blogs are online journals where people and companies post
their thoughts and other content, usually related to narrowly
defined topics.
Company blogs: Rather than
promoting products and sales,
Patagonia’s blog, The
Cleanest Line, shares stories
about the environment, tells
where the company stands on
key issues, and spreads the
brand’s “save our home Courtesy of Patagonia
planet” message.
Social Media Marketing (1 of 4)
Social media: Independent and commercial online social networks
where people congregate to socialize and share messages, opinions,
pictures, videos, and other content
Social Media Marketing Advantages
• Targeted and personal
• Interactive
• Immediate and timely
• Cost effective
• Engagement and social sharing
capabilities
JetBlue is legendary for the speed
and quality of its social media
responses. Its social media team
actively monitors Twitter, Facebook,
and Instagram interactions, usually
JetBlue
responding within minutes.
Image and Video Platforms Using social media: Starbucks uses
Messaging Platforms creative Instagram Stories to
Blogs/Microblogs immerse Instagrammers in brand-
related videos and photos on
Location Platforms
everything from menu tips,
Wikis explaining the basics of espresso,
Reviews and Ratings Platforms and its stand on social issues to
Livestreaming Platforms teaching people how to ask for their
Metaverse Platforms favorite menu items.
Jaap Arriens/NurPhoto via Getty Images
Metaverse Platforms The metaverse is in its infancy but
growing explosively. It seems like almost every big brand is
diving in with immersive metaverse spaces and experiences
that foster strong engagement and a sense of community
among brand fans.
Lightspring/Shutterstock
Social Media Marketing Challenges:
• User controlled
• Brands need to earn the right to be there
• Even a seemingly harmless social media campaign can
backfire
Mobile Marketing
Mobile marketing delivers messages, promotions, and other
content to on-the-go consumers through mobile phones,
smartphones, tablets, and other mobile devices.
For consumers, a smartphone or tablet can be a handy shopping
companion. As a result, mobile advertising spending is surging.
Mobile marketing: TripAdvisor’s
mobile app—“your ultimate
travel companion”—gives users
as-they-travel access to crowd-
sourced information about
hotels, restaurants, places to
go, and things to see worldwide.
And booking options are always
just a tap away.
BigTunaOnline/Shutterstock
Discussion Question (1 of 2)
Why has mobile marketing expanded?
Creating an Integrated Omni-Channel
Strategy (1 of 2)
Omni-channel marketing: Creating a seamless cross-
channel buying experience that integrates in-store, online,
and mobile shopping.
Omni-channel strategies:
Home Depot adopted what it
calls a “One Home Depot”
strategy designed to create
“an interconnected,
frictionless shopping
experience that enables our
customers to seamlessly THE HOME DEPOT name and logo are trademarks of
blend the digital and physical Home Depot Product Authority, LLC, used under license.
worlds.”
Creating an Integrated Omni-Channel
Strategy (2 of 2)
Overcoming the Challenges to Omni-Channel Marketing
Aligning Omni-Channel Marketing and the Overall Business
Model
Aligning Organizational Incentives and Structures
Aligning the Marketing Mix
Identify and discuss the public policy issues presented by
digital marketing.
Public Policy Issues in Digital
Marketing (1 of 4)
• Irritation includes annoying and offending customers.
• Unfairness includes taking unfair advantage of impulsive
or less-sophisticated buyers.
• Deception includes “heat merchants” who design mailers
and write copy designed to mislead consumers.
• Fraud includes identity theft and financial scams.
• Consumer privacy involves concerns that marketers may
have too much information and use it to take unfair
advantage.
Marketing (2 of 4)
Consumer Privacy
Consumer privacy: Critics
worry that marketers who
know too much about
consumers’ lives may exploit
them. Consider what Google,
Facebook, Amazon, and
other companies alone likely T Y Lim/Shutterstock
know about their customers
and account holders.
Marketing (3 of 4)
Irritation Deception and
Fraud
Consumer privacy: The ad
industry has issued a set of
online and mobile advertising
principles through the Digital
Advertising Alliance that call
for digital marketers to provide
transparency and choice to
consumers if online data are
collected or used for targeting
interest-based advertising. Sam72/Shutterstock; Eyal Dayan Photography
Marketing (4 of 4)
Data Integrity and Security
Antitrust Concerns
A Need for Action
• General Data Protection Regulation (G DP R)
• Children’s Online Privacy Protection Act (CO PP A)
Discussion Question (2 of 2)
What are the concerns related to digital marketing?
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