Part 1Digital marketing fundamentalsChapter 1Introducing digital marketing
Learning objectives • Evaluate the relevance of digital platforms and digital media to marketing • Evaluate the advantages and challenges of digital media • Identify the key differences between customer communications for digital marketing and traditional marketing.
Questions for marketers • What are the options for digital marketing to grow our business? • What are the key benefits of digital marketing? • What differences do the digital media introduce compared to existing marketing communications models?
Online Opportunities Table 1.1 Timeline of online services indicating innovation in business model or marketing communications approach
Figure 1.1 Google timeline Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html
Definitions - warning • Which definition is used isn’t so important, within a company definitions help: • Scope the digital marketing activities that need to be managed • Explain opportunities for new marketing approaches – digital transformation • Highlights some risks to be managed
What is it? Introducing the scope of digital marketing • “Achieving marketing objectives through applying digital technologies” • How? • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing • How?
Customer-centric digital marketing involves: Applying… Digital technologies which form online channels… (Web, e-mail, databases, mobile, iPTV) to… Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process and customer lifecycle) through… Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs A more in-depth definition
Which platforms are involved? • What ways can you access the Web or Internet through a browser? • Dual-screening is important • For suggestions, see p 12-13
How do digital technologies contribute to 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 profitability • Give examples of how the Internet (web and e-mail) achieves these?
How do digital technologies support marketing • Identifying – the Internet can be used for marketing research to find out customers’ needs and wants (Chapters 7 and 10). • Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation to e-marketing as explained in Chapters 2, 3 and 4. • Satisfying – a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched? These issues of customer relationship management are discussed further in Chapters 6 and 7.
Figure 1.4 YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South Korea. Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
Benefits of digital marketing – The 5Ss Table 1.2The 5 Ss of Internet marketing Source: Chaffey and Smith, 2008
Applications of digital marketing • An advertising medium • A direct-response medium • A platform for sales transactions • A lead-generation method • A distribution channel • A customer service mechanism • A relationship-building medium
Figure 1.5 North West Supplies Ltd site (www.northwestsupplies.co.uk) Source: Opportunity Wales
Figure 1.6 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations
E-business and e-commerce • You are attending an interview for a job in an E-commerce department. You are asked to:… • Define e-commerce • Explain the relationship between e-commerce and e-business?
What are the challenges of managing strategy! • Unclear responsibilities for digital • Setting objectives • Lack of budget • Budget wasted through experiments/duplication • Developing new propositions and campaigns to compete • Lack of measurement • i.e. No plan!
Why is a digital strategy needed? • To set clear goals for digital channels • To align with business strategy (avoid ad-hoc approaches) • Create a specific online value proposition (OVP) • Specify communications tools to drive visitors • Integrate digital and traditional channels • Manage customer lifecycle (e.g. through email marketing)
Different overlapping forms of web presenceGive an example of each • Transactional e-commerce site: • Examples – Amazon, Dell • Services-oriented/relationship building • Accenture, British Gas • Brand Building site • Tango, Guinness • Portal or media site • Yahoo! Silicon.com • Social network or media site • Note that these types overlap
Figure 1.9 RACE: Reach-Act (Interact)-Convert-Engage. Source: Smart Insights (2010)
Figure 1.10Six categories of e-communications tools or media channels (Chaffey and Smith, 2008)
Figure 1.11Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
Figure 1.12 Evolution of web technologies Source: Adapted from Spivack (2007)
Differences of digital media • Split into groups • For each of 1.13 to 1.16 students summarise differences between traditional media and digital media and how they can be used to advantage by companies
Figure 1.13Summary of communication models for (a) traditional media, (b) new media
Figure 1.14Summary of degree of individualisation for: (a) traditional media (same message); (b) new media (unique messages and more information exchange between customers)
Figure 1.15Channels requiring integration as part of integrated e-marketing strategy
Table 1.5 An interpretation of the differences between the old and digital media
Fundamental digital marketing concepts • Customer engagement: • “Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand” cScape • “the level of involvement, interaction, intimacy, and inﬂuence an individual has with a brand over time” Forrester • Permission marketing: • A value exchange in return for communications and profiling, e.g. Email opt-in, Like of brand on Facebook
Content marketing activities • Define content engagement value • Create content media / assets • Content syndication (influencer outreach) • Content participation • Content access platform
Content marketing approaches All available from: http://pinterest.com/smartinsights/our-infographics/