L3 Digital Marketing Strategy and Marketing Mix PDF

L3 Digital Marketing Strategy and Marketing Mix IT2863 Digital Marketing AY2023S2 Official (Closed) and Non-Sensitive Learning Outcomes 1. Define digital marketing strategy by describing its objectives and main elements....

L3 Digital Marketing Strategy and Marketing Mix IT2863 Digital Marketing AY2023S2 Official (Closed) and Non-Sensitive Learning Outcomes 1. Define digital marketing strategy by describing its objectives and main elements. 2. Describe what marketing mix is and apply on given business scenarios. 3. Identify typical goals, advantages, and limitations with digital marketing strategies. Official (Closed) and Non-Sensitive Digital Marketing Strategy A sound digital marketing plan requires detailed understanding of a brand’s own situation and demographic, the best way to engage and delight the brand's target audience and online consumers, and a clear framework for measuring success. Official (Closed) and Non-Sensitive The use of digital marketing strategy in the company is to…  gain greater direction for its digital marketing,  gain knowledge of its online market share, and  achieve greater accountability and justification for marketing resources  ensure it is using the right tactics and messages to reach its target audience Official (Closed) and Non-Sensitive Digital Marketing Plan  The digital marketing plan serves as a blueprint to guide businesses in their formulation of digital marketing strategy and its implementation. 1. Situation Analysis 2. Objectives 3. Strategy 4. Tactics 5. Actions 6. Control Official (Closed) and Non-Sensitive Digital Marketing Plan 1. Situation Analysis  Looking at your current situation  Who are your digital customers right now?  Which digital channels are they using?  Who are your competitors and what makes them stand out? 2. Objectives  Need to be ‘SMART’ : Specific, Measurable, Actionable, Relevant and Time-bound  Eg To increase the number of website visitors who request more information by 3% over the next 6 months Official (Closed) and Non-Sensitive Digital Marketing Plan 3. Strategy  Analyse information gathered during “situation analysis” in order to determine how you will meet the “objectives”  Which segments are you going to target?  What activities are your competitors engaged in that relate to your objectives?  What is your online value proposition? 4. Tactics  “Nitty-Gritty” of what digital tools are right for your target audience and how you are going to use them  How will your choice of tools allow you to target the intended audience?  How will you convey your online value proposition?  What content do you need to develop (emails, posts, ads, etc)? Official (Closed) and Non-Sensitive Digital Marketing Plan 5. Actions  Draw up a schedule to implement the “tactics”  What needs to be done? Who will do it? When will they do it?  Anything to be outsourced? 6. Control  Plan how you are going to monitor and measure whether you are meeting your strategy’s objectives  What are the Key Performance Indicators (KPIs)?  Which monitoring and reporting tools will you use? Official (Closed) and Non-Sensitive Source: https://www.ascendbusinessgrowth.com/blog/example-of-monthly-inbound-marketing-plan Official (Closed) and Non-Sensitive Marketing Mix  Marketing mix provides a guide for companies as they define its marketing objectives in the target market. Marketing Mix In digital marketing context, it… Refers to characteristics of product, service or brand Product Looks at opportunities for modifying the core or extended product for digital environment Refers to an organisation’s pricing models and prices of products and services Price Focuses on the implications for setting prices in digital markets Refers to how and where the product is distributed to the customers (e.g. Place website or mobile) Includes ease of navigation from one site to another Refers to how marketing communications are used to inform customers about Promotion a company and its products or services Explores promotional techniques to attain digital marketing objectives Official (Closed) and Non-Sensitive What is Marketing Mix for?  For strategy development and comparison between an organisation’s existing services with competitor’s.  For varying different elements of an organisation’s product offering to influence the demand for products.  A tool for generating alternative strategic approaches.  Helps with the company’s implementation plan and monitor their performance using analytics tools. Official (Closed) and Non-Sensitive Develop Strategies and Choose Tactics  Which digital marketing or social media platforms to use, and how to combine them to reach and engage with their target audience?  Which digital marketing tools should deliver the campaign's content?  Who will participate in the conversation with online audience on behalf of the company?  What is achievable by considering the company's available resources, budget and timeline?  How to make it easy for potential customers to locate and participate in the conversation? Official (Closed) and Non-Sensitive How can companies make decisions that makes sense? Official (Closed) and Non-Sensitive Business Portfolio Analysis Quantify performance measures and growth targets to analyse a firm’s Strategic Business Units (SBUs) Tool’s purpose is to determine whether each SBU is sufficiently appealing to receive a cash infusion Official (Closed) and Non-Sensitive Stars Question Marks Business Units with both high market share and a high Business Units operating in low market share in high- growth industry growth market As stars continue to boom, additional investment These products tend to reduce a company’s cash flow generate excess cash, making stars extremely valuable initially because they require heavy investment in products for the company order to grow Hope is that eventually as growth rate dies down, the Must be analyzed thoroughly and carefully to stars become cash cows determine whether worth the investment Eg Apple’s iPhones continue to generate excess profits Eg Apple’s AirPods are growing extremely quickly but have and the company dominates the growing smartphone yet to dominate the market market Cash Cows Dogs Products with high market share in a slow-growing Business units with low market share in a mature and industry slow-growing industry Business units typically generate more cash than Products seen to have little future with the company what’s needed to maintain them Should be divested and sold to another company Should continue to be “milked” with as little investment as possible Eg Apple’s iPods have now been cannibalised by its Eg Apple’s laptops are no longer in a fast-growing iPhones and should no longer receive further heavy industry but generate healthy profits for the company investment Official (Closed) and Non-Sensitive Examples of BCG Matrix Coca Cola BCG Matrix Samsung BCG Matrix Official (Closed) and Non-Sensitive Market Product Analysis (Ansoff Matrix) 1. Market Penetration - a marketing strategy of increasing sales of present products in existing markets. There is no change in product line or market served, but increased sales are possible, either by selling more of these products (through better promotion or distribution) or by selling the same amount of these products at a higher price to its existing customers. 2. Market Development - a marketing strategy of selling existing products to new markets. The new market could be new target groups, countries or regions. 3. Product Development is a marketing strategy of selling new products to existing markets. 4. Diversification is a marketing strategy of developing new products and selling them in new markets. This is a potentially high-risk strategy as the company has neither previous production experience nor marketing experience on which to draw. Official (Closed) and Non-Sensitive Market Product Analysis (Ansoff Matrix) Official (Closed) and Non-Sensitive Ansoff Matrix of Starbucks Official (Closed) and Non-Sensitive Monitoring, Measuring and Managing the Digital Marketing Campaign  Once digital marketing plan is implemented, its success depends on continuous monitoring and measurement to account for the firm’s return on marketing investments  Therefore, marketers must present accurate and timely measurements to justify their marketing expenditures throughout the digital marketing plan period  Monitoring and measuring plays an important role in helping marketers understand what their customers need and want, ultimately making adjustments to content or product offerings to satisfy customers Official (Closed) and Non-Sensitive Key Performance Indicators to measure online marketing efforts Average Time on Site - the average time on page signals Reach - refers to the Frequency - refers to the how long users stay on a percentage of people in a number of times an individual is website. This is an important target market who are exposed exposed to an online content metric for indicating user to the digital marketing piece during the digital engagement and the quality campaign at least once. marketing campaign period. and relevancy of the website content. Unique Website Visitors - first Pages Viewed per Session - the time visitors to a website for a number of pages a user views defined period. These visitors per session is an important are counted once even if they gauge to see how compelling have visited the same website users find the content on the before. Unique visitors will help website. business understand their web traffic over time. Official (Closed) and Non-Sensitive Content Marketing Content marketing is the strategic process of creating and amplifying content for the purpose of informing, entertaining and/or building awareness of your brand, products, or services within a target audience. Content marketing is considered a form of pull (inbound) marketing. The opposite is push (outbound) marketing where businesses focus more on selling. Official (Closed) and Non-Sensitive Content Marketing best practices Create valuable content that audience can relate to, for greater potential of engagement with its target audience Use content formats that audience prefers to read or watch such as engaging visuals and videos Add share-worthy text and images that would keep the audience engaged Regular content updates to draw audience back for more fresh content and helps with search engine ranking. Audience participation in terms of invitations to generate content via posts, shares, discussions, reviews or other forms of conversation with the business as well as with other online audience Find the right content mix: owned, paid, earned Official (Closed) and Non-Sensitive Benefits of Effective Content  Businesses can gain from creating effective content that resonates with its target audience:  Increased engagement with its target audience  Build sustainable relationships with its target audience  Drive greater demand for its products and/or services Official (Closed) and Non-Sensitive Advantages and Challenges with Digital Marketing Strategies – Ethical & Legal Issues  Slew of social, ethical and cultural considerations involved to make sure your strategy appeals to a market without excluding or offending others  Any of our mistakes or lack of knowledge regarding morality or ethics can be seen by almost everyone, in a short span of time  Important for marketers to stay informed, exercise caution in digital marketing and protect consumer privacy Official (Closed) and Non-Sensitive Advantages and Challenges with Digital Marketing Strategies – Ethical & Legal Issues  Ethical Issues in Marketing  Emerging ethical challenges in market research  Ethics in advertising & promotion  Deceptive Marketing Policies & Ethics  Anti-Competitive Practices (eg bait and switch, planned obsolescence)  Pricing Ethics (eg bid rigging, predatory pricing)  Don’t misconstrue facts  Avoid misleading information Official (Closed) and Non-Sensitive Brand Experience Online  The BRAND is the EXPERIENCE and the EXPERIENCE is the BRAND  To build successful online brands, organisations should consider how their value proposition can build on these possible brand promises:  The Promise of Convenience  The Promise of Achievement  The Promise of Fun & Adventure  The Promise of Self-Expression, Recognition & Belonging