L1 Introduction to Digital Marketing PDF

L1 Introduction to Digital Marketing IT2863 Digital Marketing AY2023S2 Official (Closed) and Non-Sensitive Learning Outcomes 1. Define digital marketing. 2. Explain the benefits of utilising digital marketing by making...

L1 Introduction to Digital Marketing IT2863 Digital Marketing AY2023S2 Official (Closed) and Non-Sensitive Learning Outcomes 1. Define digital marketing. 2. Explain the benefits of utilising digital marketing by making comparisons with traditional marketing. 3. Explain how advances in internet and information technology offer benefits and challenges to consumers, businesses, marketers, and society for marketing. 4. Distinguish between E-Business and E-Marketing. Official (Closed) and Non-Sensitive The Scarcity Principle  Higher demand for item, service or goods  Need to gather for the future  Sense of urgency to encourage purchase Scarcity = value. Scarcity creates demand. Scarcity leads to action. Official (Closed) and Non-Sensitive The Scarcity Principle – Limited Number Tactics Only X left Out of Stock Official (Closed) and Non-Sensitive The Scarcity Principle – Limited Time Tactics Today’s Deals Holiday Specials Official (Closed) and Non-Sensitive The Exclusivity Technique  Gives a select subset of customers a special deal on goods or services.  The exclusivity technique works by making the eligible subset of customers feel special.  This creates a better customer business relationship and is proven to increase brand loyalty. Official (Closed) and Non-Sensitive Source: https://www.slideshare.net/irinaghiurova/coach-43727202 Official (Closed) and Non-Sensitive What is marketing?  Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large. Official (Closed) and Non-Sensitive Value Creation  Marketing seeks to create, communicate, and deliver VALUE.  How do you make customers value what you offer?  Demonstrate that you value them and their money, time, needs, etc  Deliver value that your customer recognise and appreciate  E.g. Luxury industry – why customers are willing to pay much more? Official (Closed) and Non-Sensitive Stakeholders  Organisation must strike a continual balance among competing interests of customers, suppliers, employees & shareholders  Variety of other people, groups and forces interact with marketing to shape the nature of its activities Many factors influencing marketing activities Official (Closed) and Non-Sensitive Factors Influencing Marketing Activities Official (Closed) and Non-Sensitive Requirements for Marketing to Occur  Parties with unsatisfied needs  A desire and ability to satisfy these needs  A way for the parties to communicate  Something to exchange Official (Closed) and Non-Sensitive Identify Consumer’s Needs  Marketing’s first objective is to discover the needs of consumers.  Consumers may not always know how to describe what they need and want  Effective marketing research required. It is about FINDING THE GAP. Official (Closed) and Non-Sensitive Every Organisation’s Challenge  How to meet consumer needs with new products?  About 94% of the 33,000+ new consumable products (food, beverage, health, beauty, etc.) introduced in the market each year do not succeed over the long run.  Two key principles for new product launches: 1. Focus on the consumer benefit 2. Learn from the past Official (Closed) and Non-Sensitive Consumer Needs vs Wants What is a NEED?  A need occurs when a person feels physiologically deprived of basic necessities, such as food, clothing, and shelter. (check Maslow’s hierarchy of needs) What is a WANT?  A want is a need that is shaped by a person’s knowledge, culture and personality.  Effective marketing creates an awareness of good products to shape a person’s wants. Does marketing persuade people to buy the wrong things? Official (Closed) and Non-Sensitive What is a market?  Potential consumers make up a market, which are people with both the desire & ability to buy a specific product.  Organisations focuses on the needs of its target audience — one or more specific groups of potential consumers toward which an organization directs its marketing program. Growing markets = Brazil, Russia, India, China & South Africa. Official (Closed) and Non-Sensitive Digital Marketing Defined  Digital Marketing = Digital Technologies + Marketing  Digital marketing refers to the marketing of products and/or services using digital technologies to reach consumers online and convert leads into customers through a targeted, measurable and interactive marketing approach. Official (Closed) and Non-Sensitive Marketing has changed with the power shift from sellers (businesses) to buyers (individual consumers)  Consumers trust each other more than companies  Market & media fragmentation  Online connections are critical as consumers tend to value connectivity and productivity  Everyone is a content producer  Social commerce – companies increasingly using social media for marketing & sales  Scalability – companies can scale online easily and reach consumers overseas as well  Perpetual beta – companies can always test and improve upon their launched products/services  Reputation economy – companies value their share of voice online and whether they have good online reputation Official (Closed) and Non-Sensitive Digital Marketing as part of Marketing Strategy  The shift in power from businesses (sellers) to individuals (buyers) have made it more essential for businesses to re-think their marketing strategy Official (Closed) and Non-Sensitive Why should businesses include digital marketing in their overall marketing strategy?  Companies need to extend their reach to more potential customers to increase their customer base.  As internet adoption matures, companies can reach potential customers across different geographic borders with digital marketing.  With decline of print media, digital marketing is more cost effective than traditional marketing such as print advertising.  Companies should include digital marketing to stay relevant to changing consumer behaviour where more consumers are accessible online than through offline channels. Official (Closed) and Non-Sensitive Types of Digital Marketing Communication  The different content types often used in Digital Marketing can be broadly categorised into Owned, Paid and Earned Media. Official (Closed) and Non-Sensitive Owned Media  Encompasses anything that is owned and operated by the company  E.g. Websites and social media accounts  Company can decide what to post and when to post  Can be very beneficial to marketing efforts as Twitter feeds, Instagram posts and blog posts can all be excellent ways to advertise a company  Allows companies to create a voice for their brand and personalise themselves in the eyes of their audience  Viral owned media post can do wonders in increasing awareness of or loyalty to a brand Official (Closed) and Non-Sensitive Paid Media  Advertisements that must be paid for  Includes basic TV, print, online ads such as Pay-Per-Clicks Advertisements - must exchange money for sponsored content  Also includes paid influencer marketing, which often takes the form of sponsored social media posts by celebrities and influencers  Perfect for companies less worried about cost and more concerned with getting as many eyes as possible on a brand, especially prospects who do not yet know about the brand  Pay-Per-Click Advertising (or PPC) is a ways of paying based on the click- through by the online consumer to an online advertisement  Diverse kinds of online advertising :  Search Ads  Banner Ads  Shopping Ads Official (Closed) and Non-Sensitive Earned Media  All the content and conversation around the brand or product that has been created by somebody else and published somewhere other than the company’s owned channels  Usually gained as a results of the company’s marketing efforts in paid and owned media  Include press coverage, social media mentions, shares and retweets, product or company reviews, blog posts authored outside the company  “Word-of-mouth”  There is no exchange of money as company organically earns the endorsement Official (Closed) and Non-Sensitive Digital Marketing vs Traditional Marketing  Digital Marketing is the promotion of products or brands via one or more forms of electronic media to create awareness and pull customers.  Traditional Marketing is any type of promotion, advertising or campaign through print advertisements. It is to push information to customers. Official (Closed) and Non-Sensitive Why are companies moving from traditional marketing to digital marketing? 1. Digital Marketing requires lesser amount of investment to reach the same number of audiences as compared to Traditional Marketing. 2. Digital platforms enable companies to build meaningful connections with their audience. 3. Digital campaigns make it easier for tracking and measuring of specific goals for each of the marketing efforts. 4. The arrival of smartphones and the accessibility it offers has reshaped the way audience consumes media. Official (Closed) and Non-Sensitive Benefits of Digital Media 1. Interactivity  Customer initiates contact and seeks information through researching information on digital media.  A pull mechanism when customers enters search terms relevant to a company’s products or services. 2. Intelligence  The internet is used as a low-cost method of collecting marketing research information, particularly about customer perceptions of products and services. 3. Individualization  Communication is tailored to the individual at relatively low costs, unlike in traditional media where the same message tends to be broadcast to everyone. Official (Closed) and Non-Sensitive Benefits of Digital Media 4. Integration  Integrated marketing communications can happen between customers and other partners in 2 ways – 1. Outbound communication from organization to customer.  How does the Internet complement other channels to communicate the company’s products and services to new and existing customers with a goal to have new customers while retaining existing customers? 2. Inbound communications from customer to organization.  How can the Internet complement other channels to deliver customer service to these customers? 5. Independence of location  Digital media introduced the possibility of increasing the reach of company communications to the global market.  This gives opportunities to sell at global markets which may not have been previously possible. Official (Closed) and Non-Sensitive E-Business vs E-Marketing  E-Business is the optimisation of a company's business activities using digital technology.  E-Commerce refers to digitally enabled commercial transactions between and among organisations and individuals. It is a subset of e- business.  E-Marketing is the result of information technology applied to traditional marketing.