Digital Marketing Course 5N1364 - Unit 1 PDF

Digital Marketing Unit 1 Digital Marketing - Level 5: Unit 1 5N1364 Digital Marketing Level 5 - 5N1364...

Digital Marketing Unit 1 Digital Marketing - Level 5: Unit 1 5N1364 Digital Marketing Level 5 - 5N1364 Unit 1 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any format by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the proprietor and copyright owner of the course. Reproduction is prohibited. Unauthorised use may give rise to a claim for damages and/or be a criminal offence Printed and published in Ireland By The Open College Written by Catherine Trebble Licensed holders of the copyright and publication rights for Ireland Copyright © 2018/19 The Open College & Catherine Trebble 1 Digital Marketing - Level 5: Unit 1 5N1364 Contents Unit 1: Introduction to Marketing......................................................................... 4 1.1 Marketing............................................................................................................................ 4 1.2 Relationship Marketing....................................................................................................... 4 1.3 The Purpose of Marketing................................................................................................... 4 1.4 The Marketing Mix.............................................................................................................. 6 Product.................................................................................................................................. 7 Place...................................................................................................................................... 7 Price....................................................................................................................................... 7 Promotion.............................................................................................................................. 8 1.5 Brands.................................................................................................................................. 8 1.6 The Branding Process.......................................................................................................... 8 Define your audience............................................................................................................. 9 Define your brand.................................................................................................................. 9 Craft your brand image......................................................................................................... 9 Develop your communication strategy................................................................................. 9 Maintain your brand........................................................................................................... 10 Measure.............................................................................................................................. 10 Brand extension................................................................................................................... 11 First Mover.......................................................................................................................... 12 1.7 What is Digital Marketing?................................................................................................ 12 1.8 The Case for Digital Marketing.......................................................................................... 13 Pure Clicks........................................................................................................................... 13 Bricks and Clicks.................................................................................................................. 13 1.9 The Digital Divide............................................................................................................... 14 Number of mobile phone users worldwide from 2015 to 2020 (in billions)........................ 14 1.10 Ethical, Social and Political Issues.................................................................................... 15 Legal obligations................................................................................................................. 15 Cookies................................................................................................................................ 16 Copyright............................................................................................................................. 16 Copyright © 2018/19 The Open College & Catherine Trebble 2 Digital Marketing - Level 5: Unit 1 5N1364 1.11 The Challenge to Protecting Intellectual Property Online.............................................. 17 Resources........................................................................................................... 19 Marketing Mix Case Studies................................................................................................ 19 Branding Case Studies......................................................................................................... 19 Mobile Phone Penetration Rates......................................................................................... 19 GDPR................................................................................................................................... 19 Cookies................................................................................................................................ 20 Copyright Association of Ireland......................................................................................... 20 Irish Trademarks Legal Framework..................................................................................... 20 Copyright © 2018/19 The Open College & Catherine Trebble 3 Digital Marketing - Level 5: Unit 1 5N1364 Unit 1: Introduction to Marketing 1.1 Marketing Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers. http://en.wikipedia.org/wiki/Marketing 1.2 Relationship Marketing Relationship marketing is the development and management of long-term relationships with customers where the core elements are likeability and trust between the vendor and customer. When these relationships with customers have been established, loyalty to your brand is far more likely to occur. Continual nurturing of these relationships is key to their long-term success. 1.3 The Purpose of Marketing The purpose of any marketing, whether online or offline, is to bring in more business to increase profits. There are four basic ways to improve profits: Increase customers: a. Increase traffic to increase customers. b. Add to product offerings to make them more compelling. Copyright © 2018/19 The Open College & Catherine Trebble 4 Digital Marketing - Level 5: Unit 1 5N1364 c. Use PPC, SEO, business results, article marketing, etc. Increase number of transactions per customer: a. Build mailing list. b. Build followers via your social media channels. c. Increase customer communications through autoresponders, newsletters, broadcast messages. d. Offer them upsell opportunities — pitch something seasonal. e. Send out reminders for services and specials. Increase the average amount per transaction: f. Offer bundle packages and upgrades, strong reasons to purchase. Decrease costs, finding free traffic, lowering cost per click: a. Increasing conversions decreases costs. b. Offer a bonus, change a headline, and offer a free consultation. c. Even converting from 1% to 2% is a 100% improvement and cuts costs for buying traffic in half — pure profit! By putting a digital marketing plan in place and following through with it, you can achieve all of these goals. You can easily improve your profits through the strategic use of digital marketing techniques that will increase customers, increase the number of transactions per customer, increase the average amount per transaction and decrease costs, while finding free traffic which leads to a lower cost per click. Copyright © 2018/19 The Open College & Catherine Trebble 5 Digital Marketing - Level 5: Unit 1 5N1364 1.4 The Marketing Mix In his article from 1953 entitled “The Concept of the Marketing Mix”, Neil Borden crafted what would become one of the most important terms for marketers - The Marketing Mix. This is a planned mix of critical elements that go to make up a marketing strategy. E. Jerome McCarthy first used the term “the 4 Ps” in 1960 to describe the four main elements of the marketing mix – product, place, price and promotion. The concept helped simplify understanding of the main elements of marketing. When marketing, businesses need to create a successful mix of the right product sold at the right price in the right place using the most suitable promotion. Copyright © 2018/19 The Open College & Catherine Trebble 6 Digital Marketing - Level 5: Unit 1 5N1364 Product An item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Tangible products have an independent physical existence, such as a bottle of shampoo, or a house. Intangible products are services such as the booking of a hotel room, or paying for financial services. Place This refers to providing the product at a place that is convenient for consumers to access. Distribution is an important element of place as it involves getting the right product to the right place at the right time. Place is concerned with getting your product in front of the customer. After all, if consumers can’t find your products, they won’t get the opportunity to purchase them. Place is also understood as the mechanism through which goods and/or services are moved from the manufacturer/service provider to the user or consumer. Price The amount a customer pays for the product. Price is the marketing mix element that creates sales revenue. The price is important as it determines the company's profit. Adjusting the price depends on the price elasticity of the product within the market. The price of a product will need to be competitive. As a rule, you will want your products to be industry matched to the industry leader to attract new customers. When combined with exceptional customer service, it is possible to fluctuate the price later on to maximise your profits, while ensuring there is a degree of prestige associated with your product or services. Copyright © 2018/19 The Open College & Catherine Trebble 7 Digital Marketing - Level 5: Unit 1 5N1364 Promotion The methods of communication used to provide information to customers about the product. Promotion comprises elements such as advertising and public relations. When consumers don’t know a product is available, they won’t have the opportunity to purchase it. You need to find the right methods of communication to create a need for your products and services. Promotion covers all aspects from shelf barkers in a supermarket to a full-blown T.V. advertising campaign. Each element of the marketing mix is vitally important for the success of the products and services you offer. The four aspects work with each other to move and promote your products and services. 1.5 Brands A brand is a product or service that is distinguished from other products or services so that it can be easily communicated and marketed. A brand name is the name of the distinctive product or service. Branding is the process of creating and disseminating the brand name. Branding can be applied to a corporate identity as well as to individual products and services. Brands are often expressed graphically in the form of logos. Brand names and logos are usually protected in law by trademarks, patents or copyright. 1.6 The Branding Process The branding process requires careful thought and planning, extensive research, specific definition and maintenance. Copyright © 2018/19 The Open College & Catherine Trebble 8 Digital Marketing - Level 5: Unit 1 5N1364 A successful business has to develop a brand that its potential target market becomes familiar with and can trust. Once this is done, it becomes easier for the business to grow and develop successful customer relationships. Here are the steps to follow in order to build a successful brand. Define Your Audience In order to effectively communicate your brand and brand message, you need to have a deep understanding of who your customers are. Your customers are the lifeblood of your business, without this strong knowledge of your market, your branding can easily go off-target. We will be discussing this in detail in module 2. Define Your Brand To define a company's brand, you need to have a clear picture of the unique benefits your products and services offer. Identify your unique value proposition. This is your brand promise, the one thing that separates you from your market and makes your business what it is. Craft Your Brand Image A picture speaks a thousand words and a strong logo needs to do this talking for you. Couple this with a simple, clear and effective tag line to effectively convey your brand message in all actions taken by the business, so that your branding creates trust in the minds of your consumers. Develop Your Communication Strategy Your communication strategy needs to address both your internal and external audiences. Your internal audience relates to your staff. Copyright © 2018/19 The Open College & Catherine Trebble 9 Digital Marketing - Level 5: Unit 1 5N1364 Your branding message has to be understood by your employees first, so they can effectively communicate this to your customers. External audiences are your customers (buyers) and consumers of your products and services. Your communication strategy includes developing your online and offline marketing and advertising campaigns. Maintain Your Brand It is not just enough to create a brand. A business must untiringly work towards making sure that it is true towards its brand. An organisation that promises one thing and does another is surely not going to succeed. An easy way to make sure that the brand message stays fresh in the customers' minds is to bring about a fundamental change in the total working of the business so that it reflects what it stands for. Measure By the end of the branding process you should have a relevant, simple and clear brand promise that resonates with your target audience. By offering consistent customer service and products, you should be able to manage your brand very well. You can make sure by measuring its effectiveness with your core audience. Ask your customers what they think of when they think of you and your brand image. Your customers will provide positive or negative word of mouth marketing for your business, so you need to make sure you have your finger on the pulse of what they think of you and fine tune as necessary. Copyright © 2018/19 The Open College & Catherine Trebble 10 Digital Marketing - Level 5: Unit 1 5N1364 Brand Extension This refers to the use of a successful brand name to launch a new or modified product in a same broad market. A successful brand helps a company enter new product categories more easily. For example, the Lucozade brand has undergone a very successful brand extension from children’s health drink to an energy drink and sports drink. Copyright © 2018/19 The Open College & Catherine Trebble 11 Digital Marketing - Level 5: Unit 1 5N1364 First Mover This is a form of competitive advantage that a company earns by being the first to enter a specific market or industry. Being the first allows a company to acquire superior brand recognition and customer loyalty. The company also has more time to perfect its product or service. 1.7 What is Digital Marketing? Digital Marketing is the promotion of products or services via one or more forms of electronic media. Digital marketing channels include: ✓ Social Media Marketing. ✓ Search Engine Optimisation. ✓ Pay Per Click Marketing. ✓ Email Marketing. ✓ Banner Display Advertising. ✓ Online Video Marketing. ✓ Online PR. ✓ Mobile Marketing. ✓ Affiliate Marketing. Through this course we will be making an in-depth study of these media. Copyright © 2018/19 The Open College & Catherine Trebble 12 Digital Marketing - Level 5: Unit 1 5N1364 1.8 The Case for Digital Marketing For most businesses today, traditional marketing is no longer effective by itself. The fact of the matter is that the marketing techniques that were solid and reliable for businesses to use to reach their market in the past, are no longer working as effectively as they used to. This means that for most businesses, telephone directory ads, newspapers and other types of hard copy advertising, are not bringing in enough business. That’s because people simply don’t use them the way they used to. Consumers are looking more and more to the Internet to find information about the services and products they are seeking. Therefore, if businesses want to reach new customers they simply have to have a quality Internet presence. Pure Clicks Pure click companies have their business wholly online. The most prominent companies are Ebay and Amazon. Neither company sells products offline. Bricks and Clicks Bricks and clicks is a business model by which a company integrates both offline (bricks) and online (clicks) presences. Additionally, many will also offer telephone ordering as well, or at least provide telephone sales support. A popular example of the bricks and clicks model is when a chain of stores allows the customer to order products either online or physically in one of their stores, also allowing them to either pick-up their order directly at a local branch of the store or get it delivered to their home. Copyright © 2018/19 The Open College & Catherine Trebble 13 Digital Marketing - Level 5: Unit 1 5N1364 1.9 The Digital Divide The Digital Divide is a social issue that refers to those who have access to the Internet and those who don't. The term became popular in the late 1990s when access to the Internet was primarily via a computer. For poorer people, the cost of a computer and broadband connection was prohibitively expensive, so these people largely became excluded from the digital world. Interestingly enough, the explosion in mobile phone usage has narrowed this 'digital divide' considerably. The number of mobile phone users in the world is predicted to pass the five billion mark by 2019. In 2016, an estimated 62.9 percent of the population worldwide already owned a mobile phone. The mobile phone penetration is forecast to continue to grow, rounding up to 67 percent by 2019. Most of the mobile market growth can be attributed to the increasing popularity of smartphones. By 2014, around 38 percent of all mobile users were smartphone users. By 2018, the number of smartphone users reached over 50 percent. Samsung and Apple are leading smartphone vendors, with about 18 percent of the market share each. Number of mobile phone users worldwide from 2015 to 2020 (in billions) Copyright © 2018/19 The Open College & Catherine Trebble 14 Digital Marketing - Level 5: Unit 1 5N1364 In other words, nearly everyone on the planet has a mobile phone - or will have one soon enough. It should be noted that not all mobile phones have Internet connectivity, but as smart phones continue to drop in price and become even more widely used, Internet accessibility continues to rise across the globe. 1.10 Ethical, Social and Political Issues There are ethical, social and political issues to take into consideration when marketing online. When a customer chooses to do business online, they want to have a positive experience where they know their information is safe. A business website needs to clearly show they have taken care of any security and privacy concerns. For example, when tracking cookies are being used, it is important you place this information in a Privacy Policies page. This is where you let the individual know about any information that is collected and how that information may be used. You have a responsibility to ensure email communications and client financial records are protected, and that the website has security measures in place to prevent hackers. Legal Obligations In many cases, the legal system impacts what you can and cannot do when promoting a product or service. Because of this, you need to be aware of these issues and gain some understanding of them. After all, ignorance of the law isn’t a defense! Copyright © 2018/19 The Open College & Catherine Trebble 15 Digital Marketing - Level 5: Unit 1 5N1364 Every business website should have a comprehensive Privacy Policy Page and Terms and Conditions Page outlining this information. GDPR General Data Protection Regulation (GDPR) aims primarily to give control to citizens and residents of the EU over their personal data, and to simplify the regulatory environment for international business by unifying the regulation within the EU. The implementation date for GDPR compliance was on 25th May 2018. Cookies A cookie is a small text file that may be stored on your computer or mobile device that contains data related to a website you visit. It may allow a website to “remember” your actions or preferences over a period of time, or it may contain data related to the function or delivery of the site. Cookies can be set by the owner of the website or in some cases, by third party services the website owner allows to present other information, run content or provide other functionality such as analytics. Copyright A copyright is the exclusive rights of an individual/company to use an original work that they have created for a specific period of time. Recognised by most governments, this right to copy also allows the individual to grant reproduction in other formats such as licensing to others, while financially benefitting from it. Copyright © 2018/19 The Open College & Catherine Trebble 16 Digital Marketing - Level 5: Unit 1 5N1364 Property rights of content and photographs can be subjective online. For example, if you are marketing a product, you may purchase limited rights to use images in your marketing. This extends to intellectual property rights, including layout concepts, patents, and trade secrets. A good rule of thumb is if you didn’t create the content yourself, then it is not yours to use. 1.11 The Challenge to Protecting Intellectual Property Online Protecting your intellectual property (IP) online can be quite difficult because of the nature of the Internet. It’s basically made for sharing, and people share files with one another all the time. Here are some of the challenges those wishing to protect their IP face. Internet hacking culture Some individuals and groups on the Internet consider it sport to break any security measure people put on their intellectual property to prevent it from being shared. Many of them do this not for any financial gain, but simply because it poses a challenge. As a result, almost any tactic that people use to protect their work will become ineffective shortly after it’s developed and introduced to the public. As you can imagine, this poses quite a challenge for those attempting to protect their IP. Protecting your copyright If you believe that someone is violating your copyright by selling your work directly, or claiming authorship to it without your consent, then a “Cease and Desist” notice can be sent to the person believed to be violating your IP. Copyright © 2018/19 The Open College & Catherine Trebble 17 Digital Marketing - Level 5: Unit 1 5N1364 This is usually done through a solicitor. The problems with this are many. For starters, jurisdiction is often an issue. If the person who violated your work is in a different country, then you may have to go through that country’s legal system to get recompense or to force them to stop infringing your copyright. If “Cease and Desist” notices don’t stop the perpetrators, then further legal action is advised. This can be complicated and expensive. Patents Patents have the same sort of issues as copyright. A lot of patents are in the public record, which makes it easy for people to copy a patent very closely while remaining legally compliant. Trademarks The trademarking process itself can be a long one. As the Internet is global, when seeking a trademark, it may be worth considering a worldwide trademark. You often have to prove that a trademark representation isn’t sufficiently different from yours. A trademark also has to be registered ahead of time in order for rights to be granted to it. The law regarding trademarks can be very complicated, as seen in cases where people use “Kleenex” or “Hoover” to describe more generic objects, even though those are technically trademarks. Overall, defending IP online can be a difficult process fraught with challenges. Always seek the advice of a legal professional when dealing with intellectual property protection issues. Copyright © 2018/19 The Open College & Catherine Trebble 18 Digital Marketing - Level 5: Unit 1 5N1364 Resources Marketing Mix Case Studies McDonalds Marketing Mix (4Ps) http://panmore.com/mcdonalds-marketing-mix-4ps-analysis The Starbucks Experience https://www.youtube.com/watch?v=MeqrvVyH2mI Branding Case Studies Huawei http://www.brandingbusiness.com/case-studies/huawei Gillette https://www.youtube.com/watch?v=DobT7bQNPnY Mobile Phone Penetration Rates https://www.statista.com/statistics/274774/forecast-of-mobile-phone-users- worldwide/ GDPR https://en.wikipedia.org/wiki/General_Data_Protection_Regulation Copyright © 2018/19 The Open College & Catherine Trebble 19 Digital Marketing - Level 5: Unit 1 5N1364 Cookies http://ec.europa.eu/ipg/basics/legal/cookies/index_en.htm Copyright Association of Ireland http://www.cai.ie/?page_id=11 Irish Trademarks Legal Framework http://frkelly.com/wp- content/files_mf/1366125082IrishTradeMarkLegalFramework.pdf End of Unit 1. Copyright © 2018/19 The Open College & Catherine Trebble 20