2. Online macro environment.pdf

Online macro environment DDM Module 1 Shanaka Rathnayake – MBA (UWE Bristol) [email protected] The digital marketing environment Source : Dave Chaffey  Main elements of the online marketplace...

Online macro environment DDM Module 1 Shanaka Rathnayake – MBA (UWE Bristol) [email protected] The digital marketing environment Source : Dave Chaffey  Main elements of the online marketplace Understand the target group’s online media consumption, behavior and relevant types of digital Customer segments content. In a digital campaign or website design project, personas can be used to help understand the preferences, characteristics and online behaviors of different target markets. Search intermediaries. Calculate the total potential opportunity and the current share of search terms of a brand. Intermediaries, influencers & Drive traffic to owned assets publishers Destination sites & Sites by retail, financial service, travel, manufacturers platforms  Digital Micro Environmental Analysis Porter's Five Forces is a framework for analyzing a company's competitive environment. The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability. Five Forces analysis can be used to guide business strategy to increase competitive advantage. Digital Micro Environmental Analysis Source : Dave Chaffey Customers interactions with digital markets Digital customer encounters many more ‘touchpoints’ (digital triggers and influences), which influence their decision making (e.g., websites, social media content and blogs). The Connected Customer Digital Market Audit A comprehensive, systematic, independent and periodic examination of company's marketing environment, objectives, strategies and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance (Kotler,Keller and Scott,2007) Why do a marketplace analysis? Be competitive by becoming more customer-centered in the online marketing activities Get to know how customers research and select your products Use of ‘search’ & social media Know where improvements are needed to increase marketing effectiveness Competitor benchmarking Customer personas Identify potential revenue improvements Zero based budgeting Performance marketing CRO Why do a marketplace analysis? Know how your marketing capabilities compares with competition Vs direct & indirect competitors Know where the quick wins are Identify top performing channels & optimize e.g. Search | Social | Email marketing Know what future opportunities and threats are SWOT analysis | TOWS matrix  The Online Marketplace map Summarizes the main audience types, competitors for traffic and traffic flows between them. What are people searching for? Where they are searching online? What sites they visit? How they compare? How they buy? Where they buy? Understanding the answers to above questions is important before defining digital marketing strategy.  The Online Marketplace map Example for Nokia India.  Do one example for Dell Laptops in SL What are people searching for? Where they are searching online? What sites they visit? Activity How they compare? How they buy? Where they buy? Popular Search Intermediaries Destination search behavior & publishers (online/offline) engines TOWs matrix Above is a generic digital channel-specific SWOT analysis showing typical opportunities and threats presented by digital media. Source : smartinsights.com  SWOT analysis It’s worth considering creating a SWOT analysis of your organization, thinking laterally by embracing all your internal departments rather than just focusing on the digital marketing department and gathering evidence and interviews on your colleagues, suppliers, customer's thoughts. The TOWS technique for SWOT analysis An example of a digital channel specific SWOT for an established multichannel Source: Smart Insights brand.  Do a digital micro environment analysis for a preferred brand one of the following industries; Activity Online classifieds Industry Or FinTech | Mobile Payment Apps Macro environment analysis The macro-environment, unlike the micro-environment is out of a business’s control. They are the forces in which shape the trading environment and managers have to be able to be able to assess the changes and determine their relevance to their online business. (Chaffey & Ellis-Chadwick, 2016).  The government has controls in Consumers now look for place in order to control and businesses that are monitor the development as well as environmentally conscious & about the usage of the internet. their footprint. It’s one big market place. Globalization has allowed for online businesses to market to anyone in the world at any time. Society finds it more convenient Biggest concern is the privacy of and quicker to do commerce online. consumers. Businesses must abide by the laws related to the collection, storage, usage & deletion of this Forever changing and evolving. E.g. information. the rise of smartphones and apps and create new marketing strategies that will connect with customers on all platforms. The PESTLE analysis – Digital Environment Political While we like to think of the Internet as a global space, the social media and search engine platforms popular in your local market may not be the same as another country. Facebook has been blocked in Iran, Vietnam, & North Korea Australia has passed a world-first law aimed at making Google and Facebook pay for news content on their platforms. International and local laws (including GDPR) Sri Lanka - Data Protection | legislation currently in progress The PESTLE analysis – Digital Environment Economic This can be assessed on a nationwide or demographic- specific level by businesses. Biggest impact is on pricing. The Internet created many pricing options; First visitor & return visitor pricing is available through the use of cookies – remarketing 24-hour sales & Flash offers Dynamic pricing based on availability & quantity The Digital Economy Defined Source : www.huawei.com The PESTLE analysis – Digital Environment Sociological Understanding what’s acceptable socially or within a culture. With digital, this knowledge will create more opportunities & open new markets. Internet usage habits & overall access to the internet Beliefs, customs, & standards held The PESTLE analysis – Digital Environment Technological It's all about the technology being used, whether that's desktop or mobile, tablets, or wearables. Screen size and where the internet is accessed Making user journeys easier The PESTLE analysis – Digital Environment Legal Very important in digital strategy implementation. E.g. Setting up social media pages - promoting alcoholic drinks Copyright infringement Data protection Political campaigns Advertising targeting The PESTLE analysis – Digital Environment Environmental Positive changes you make to your brand’s environmental standing can boost your social profile and make you more appealing to the TG. Product and packing size Current environmental programs/partnerships your brand can participate in – CSR Calculating carbon footprint  Do a digital macro environment analysis for a preferred brand one of the following industries; Activity Online classifieds Industry Or FinTech | Mobile Payment Apps Key incidents - Locally Key incidents - Locally Understand the Blockchain - https://youtu.be/r43LhSUUGTQ Key incidents - Locally Facebook's cryptocurrency- https://youtu.be/v8yKNmeU30U  Key incidents - Locally Link to gazette: https://www.parliament.lk/uploads/acts/ gbills/english/6242.pdf Understanding the generations Recent events - Locally Non Existing Businesses Questions?