Digital Marketing Strategy Implementation and Practice PDF

DIGITAL MARKETING STRATEGY, IMPLEMENTATION AND PRACTICE Seventh Edition Part 1 Digital marketing fundamentals Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved Part 1 Digital marketing fundamentals 1...

DIGITAL MARKETING STRATEGY, IMPLEMENTATION AND PRACTICE Seventh Edition Part 1 Digital marketing fundamentals Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved Part 1 Digital marketing fundamentals 1 Introducing digital marketing 2 Online marketplace analysis: micro- environment 3 The digital macro-environment 2 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education,  Chapter 1 – Introduction Main Topics:  How has digital marketing transformed marketing?  What are digital marketing and multichannel marketing?  Digital marketing strategy  Digital marketing communications 3 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education,  Chapter 1 – Introduction Learning objectives:  Explain the relevance of different types 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. 4 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education,  Chapter 1 – Introduction 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 digital media introduce compared to existing marketing communications models? 5 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education,  What are digital and multichannel marketing? Digital marketing can be defined as: Achieving marketing objectives through applying digital media data and technology 6 Marketing The activities a company undertake to promote the buying and selling of products or services. Traditional Marketing TV, Radio, Newspaper Internet marketing Internet marketing is the practice of using the internet to connect with new customers. (Having a Search Engine Optimization SEO-oriented website and PPC campaigns for search marketing like Google Ads and Bing Ads. 7 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education, E-marketing E-marketing is like internet marketing with a few fun add- ons. In addition to including the internet marketing strategies of SEO and PPC, it’s also focused on more on relationship building with customers Types of eMarketing include: Social Media; Facebook, Twitter, LinkedIn, YouTube, Instagram Online reviews; Google reviews, TripAdvisor, Trustpilot, Yell Email Marketing Campaigns 8 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education, Digital Marketing Digital marketing is perhaps the most all-encompassing term of the three. It includes both internet marketing and e-marketing. It’s also going to include almost any type of marketing that has anything to do with a digital interface—everything is lumped together under this one umbrella. Other forms of Digital Marketing include:  TV Adverts  Electronic Billboards  Mobile Apps and Push Notifications  In-App PPC Campaigns  Mobile apps for your business and related push notifications  In-app PPC ads  Databases that contain market research or audience information  TV commercials 9 Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education,  How digital marketing has transformed marketing Digital marketing is about: 5Ds Audiences Digital devices: Our audiences interact with businesses using a combination of smartphones, tablets, laptops, desktop computers, TVs, gaming devices, virtual assistants (like Amazon Echo) and other connected devices forming the Internet of Things (IoT). Digital platforms. Most interactions on these devices are through a browser or apps from the major ‘platforms’ or online services, e.g. Facebook™ (and Instagram™), Google™ (and YouTube™), Twitter™, LinkedIn™, Apple™, 10 continued Digital media. Different communications channels for reaching and engaging audiences are available, including advertising, email and messaging, search engines and social networks. Digital data. The insight businesses collect about their audience profiles and their interactions with businesses now needs to be protected by law in most countries. Digital technology. This is the marketing technology that businesses use to create interactive experiences from websites and mobile apps to in-store kiosks and email campaigns 11 Internet of things IoT A system of devices, software, objects, people or animals with unique identifiers that can transfer data over a network via machine-to- machine (M2M) interactions without human interaction. Digital disruptors Innovations in digital media, data and marketing technology which enable a change to a new basis for competition in a market or across markets. Disruptors are also used to refer to startup or existing companies that, through their agility, are good examples of impacting competitors through disruption. 12  Digital Disruptors Table 1.1 Timeline of online services that have acted as digital disruptors due to innovation in business model or marketing communications approach 13  Digital Disruptors (Continued) Table 1.1 Timeline of online services that have acted as digital disruptors due to innovation in business model or marketing communications approach (Continued) 14  Figure 1.1 Customer lifecycle marketing touchpoint summary for a retailer Source: Smart Insights (2017) 15 RACE Source: Smart Insights (2010) 16 KPI Key performance indicators Are a special type of performance metric that indicate the overall performance of a process or its sub-processes and/or whether set goals are achieved. - Bounce rate: the percentage of visitors who enter the site and then leave - Conversion rates: the number of conversions divided by the total number of visitors - Conversion: any desired action that you want the user to take - Hurdle rate: the proportion of customers that fall within a particular level of activity or engagement with a brand typically within a time period 17 Paid, owned and earned media 18 Paid, owned and earned media Paid media :Also known as bought media, a direct payment occurs to a site owner or an ad network when they serve an ad, a sponsorship or pay for a click, lead or sale generated. Owned media: Different forms of online media controlled by a company including their website, blogs, email list and social media presence. Earned media: The audience is reached through editorial, comments and sharing online. 19 Some concepts related to digital marketing Customer touchpoint: Communications channels with which companies interact directly with prospects and customers. Traditional touchpoints include face to face (in-store or with sales representatives), phone and mail. Digital touchpoints include web services, email and, potentially, mobile phones. Online company presence: Different forms of online media controlled by a company including their website, blogs, email list and social media presences. Today, commonly known as ‘owned media’. Customer relationship management (CRM):Using digital communications technologies to maximise sales to existing customers and encourage continued usage of online services through techniques including a database, personalised web messaging, customer 20 Some concepts related to digital marketing Multichannel (omnichannel) marketing: Customer communications and product distribution are supported by a combination of digital and traditional channels at different points in the buying cycle or ‘path to purchase’. With the range of mobile and IoT touchpoints, some have expanded the term to omnichannel marketing Online Value Proposition (OVP): statement of the benefits of online services that reinforces the core proposition and differentiates from an organisation’s offline offering and those of competitors. Customer journeys and the customer lifecycle :The sequence of online and offline touchpoints a customer or buyer persona takes during a buying process or broader customer experience. Online this may include a range of digital platforms, communications media, websites, pages and engagement devices. 21 Different forms of functionality of digital presence: five main types of site or mobile app functions : 1. Transactional e- commerce http://www.zalando.com This enables purchase of products or services online and is typical in the retail, travel and financial services sector. The main business contribution of the site is through sale of these products. The sites also support the business by providing customer service and information for consumers who prefer to purchase products offline. 2. Services oriented relationship –building for lead - building and support https://www.optimax.co.uk This provides information to stimulate purchase and build relationships. Products and services are not typically available for purchase online 22Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education, Different forms of functionality of digital presence: five main types of site or mobile app functions : 3. Brand building (FMCG) https://www.guinness.com This type of site or app provides an experience to support the brand. Products are not typically available for online purchase. 4. Publisher or Media site https://www.smartinsights.com This provides news, entertainment or information or news about a range of topics and typically has an advertising or affiliate revenue model 5. Social network or community (C2C). Examples include Facebook, Instagram, LinkedIn, Snapchat and Twitter. These sites or parts of sites focus on enabling community interactions between different consumers (C2C model). Typical interactions include posting comments and replies to comments, sending messages, rating content and tagging content in particular categories. 23Inc. All Rights Reserved Copyright © 2019, 2016, 2012 Pearson Education, Digital marketing communications techniques ( digital media channels) It is online communications techniques used to achieve goals of brand awareness, familiarity, favourability and to influence purchase intent by encouraging users of digital media to visit a website to engage with the brand or product, and ultimately to purchase online or offline through traditional media channels such as by phone or in-store. Display ads: Use of graphical or rich media ad units within a web page to achieve goals of delivering brand awareness, familiarity, favourability and purchase intent. Pay-per-click (PPC): PPC refers to when a company pays for text ads to be displayed on the search engine results pages as a sponsored link (typically above, to the right of or below the natural listings) when a specific keyphrase is entered by the search users 24 Digital media channels Search engine optimization (SEO):A structured approach used to increase the position of a company or its products in search engine natural or organic results listings (the main body of the search results page) for selected keywords or phrases. Affiliate marketing: A commission-based arrangement where referring sites (publishers) receive a commission on sales or leads by merchants (retailers). Email marketing: Typically applied to outbound communications from a company to prospects or customers to encourage purchase or branding goals. Landing page: A destination page when a user clicks on an ad or other form of link from a referring site 25  Digital media channels  Rich media: Advertisements or site content that are not static, but provide animation, sound or interactivity.  Web (or digital) analytics: Techniques used to assess and improve the contribution of digital marketing to a business, including reviewing traffic volume, referrals, clickstreams, online reach data, customer satisfaction surveys, leads and sales. 26 Benefits of digital media (6 Is) 1. Interactivity ,includes: - The customer initiates contact; - The customer is seeking information or an experience (pull); - it is a high-intensity medium – the marketer will have 100 per cent of the individual’s attention when he or she is viewing a website ; - A company can gather and store the response of the individual; - individual needs of the customer can be addressed and taken into account in future dialogues. Inbound marketing: The consumer is proactive in seeking out information for their needs, and interactions with brands are attracted through content, search and 27 Figure 1.11 Summary of communication models for (a) traditional media, (b) new media 28 Benefits of digital media (6 Is) 2. Intelligence Digital media and technology can be used as a relatively low-cost method of collecting marketing research, Data lake and data warehouse: A data lake is a storage repository that holds a diversity of raw data in its native format where it is available for analysis and reporting by people across a company. This contrasts to a data warehouse, which contains structured data. 3. Individualization (Personalisation) Delivering individualised content through web pages or email. Sense and respond communications: Customer behaviour is monitored at an individual level and the marketer responds with communications tailored to the individual’s need. 29 Benefits of digital media (6 Is) 4. Integration - Outbound digital communications: Website, mobile push notifications or email marketing are used to send personalised communications to customers. - Inbound digital communications: Customers enquire through web- based forms, social media and email. Figure 1.13 Channels requiring integration as part of integrated digital marketing strategy 30 Benefits of digital media (6 Is) 5. Industry restructuring - Disintermediation: The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers. - Reintermediation: The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation. 6. Independence of location Electronic media also introduce the possibility of increasing the reach of company communications to the global market 31 Key challenges of digital communications - Complexity: To enable the benefits we have mentioned above – such as personalisation, testing and dynamic variation in ads through time – time has to go into configuring the campaign, although the search engines provide defaults to enable easy setup. This requires specialist expertise either in-house or at an agency to manage the campaign. - Responding to competitors. Since competitors can also change their approach readily, more resource has to be used to monitor competitor activity. Automated tools known as bid management tools can assist with this – they will automatically check amounts competitors are paying and then adjust them according to pre-defined rules. - Responding to changes: in technology and marketing platforms. Google and the other ad-serving companies innovate to offer better capabilities for their customers. This means that staff managing campaigns need training to keep up-to-date. Google offers ‘Adwords Qualified Professionals’ so that companies can be certain of a minimum skills level. 32 Key challenges of digital communications - Cost. Although costs can be readily controlled, in competitive categories the costs can be high, exceeding €10 per click. - Attention. While online paid search ads are highly targeted and there is arguably little wastage, not everyone will view paid adverts, indeed there is a phenomenon known as ‘banner blindness’ where web users ignore online ads 33  Introduction to digital marketing strategy Developing a digital marketing strategy, customer segmentation, targeting and positioning are all key to effective digital marketing. Target marketing strategy: Evaluation and selection of appropriate customer segments and the development of appropriate offers. Customer segmentation, targeting and positioning are all key to effective digital marketing. These familiar target marketing strategy approaches involve selecting target customer groups and specifying how to deliver value to these groups as a proposition of services and products (OVP). -Positioning: Customers’ perception of the product and brand offering relative to those of competitors. 34 Key features of digital marketing strategy  Be aligned with business and marketing strategy  Use clear objectivess for business and brand development and the online contribution of leads and sales for the Internet or other digital channels  Be consistent with the types of customers who use and can be effectively reached  Define a compelling, differential value proposition for the channel  Specify the mix of online and offline communication tools  Support the customer journey through the buying process  Manage the online customer lifecycle (attraction to conversion to retention to growth) 35 Figure 1.8 A generic digital marketing strategy development process 36 Applications of digital marketing strategy  Advertising medium Display ads on publisher sites or social networks can be used to create awareness of brands and demands for products or services  Direct-response medium Targeted search advertising enables companies to drive visits to a site when consumers shows intent to purchase, such as searching for a flight to a destination  Platform for sales transactions Online flight booking is now the most common method for booking flights, both for consumers and business travelers. 37 Applications of digital marketing strategy  Lead-generation method For booking business flights, tools can be provided that help identify and follow up corporate flight purchases.  Distribution channel Today, airlines sell more insurance services than previously, for example.  Customer service mechanism For example, customers may ‘self-serve’ more cost- effectively by reviewing frequently asked questions.  Relationship-building medium:. Here a company can interact with its customers to better 38 understand their needs and publicise relevant Challenges in developing and managing digital marketing strategy - There are unclear responsibilities for the many different digital marketing activities. - No specific objectives are set for digital marketing. - Insufficient budget is allocated for digital marketing because customer demand for online services is underestimated and competitors potentially gain market share through superior online activities. – - Budget is wasted as different parts of an organisation experiment with using different techniques, martech suppliers without achieving economies of scale. - New online value propositions for customers are not developed since the Internet is treated as ‘just another channel to market’ without review of opportunities to offer improved, differentiated online services. - Results from digital marketing are not measured or reviewed adequately, so actions cannot be taken to improve effectiveness. - An experimental rather than planned approach is taken to using39 e-communications with poor integration between online and  7s framework for assessing digital marketing strategy challenges Strategy: The significance of digital marketing in influencing and supporting the organisation’s strategy Structure: The modification of organisational structure to support digital marketing Systems:The development of specific processes, procedures or information systems to support digital marketing Staff:The breakdown of staff in terms of their background and characteristics such as IT vs marketing, use of contractors/consultants, age and sex 40 7s framework for assessing digital marketing challenges Style: Includes both the way in which key managers behave in achieving the organisation’s goals and the cultural style of the organisation as a whole Skills: Distinctive capabilities of key staff, but can be interpreted as specific skill sets of team members Superordinate goals The guiding concepts of the digital marketing organisation which are also part of shared values and culture. The internal and external perception of these goals may vary 41 Digital business models Business and consumer business models - Business-to-consumer (B2C): Commercial transactions between an organisation and consumers. - Business-to-business (B2B): Commercial transactions between an organisation and other organisations (inter- organisational marketing). - Consumer-to-consumer (C2C): Informational or financial transactions between consumers, but usually mediated through a business site. - Consumer-to-business (C2B): Consumers approach the business with an offer. e-government: The use of Internet technologies to provide government services to citizens. 42  Figure 1.5 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations 43 What is the difference between e-commerce and digital business? Electronic commerce (e-commerce): All financial and informational electronically mediated exchanges between an organisation and its external stakeholders. E-commerce is often subdivided into a sell-side e-commerce and a buy-side e-commerce. Electronic or digital business: is similar to e-commerce but broader in scope. It refers to using digital technology to manage a range of business processes incorporating the sell-side and buy-side e-commerce and also other key supporting business processes including research and development, marketing, manufacturing and inbound and outbound logistics. 44  Figure 1.6 The distinction between buy-side and sell side of e-commerce 45  Key communication concepts for digital marketing - Permission marketing: Customers agree (opt in) to be involved in an organisation’s marketing activities, usually as a result of an incentive. - Content marketing: The management of text, rich media, audio and video content aimed at engaging customers and prospects to meet business goals published through print and digital media including web and mobile platforms which is repurposed and syndicated to different forms of web presence such as publisher sites, blogs, social media and comparison sites. - Customer engagement: repeated interactions through the customer lifecycle prompted by online and offline communications Source: Smart Insights (2015a) aimed at strengthening the long-term emotional, psychological and 46 physical investment a customer has with a brand.