Week 4 Digital Marketing: Istanbul Gelisim University PDF

DIGITAL MARKETING THE DIGITAL MACRO-ENVIRONMENT WEEK 4 Asst. Prof. Dr. Gülsüm VEZİR OĞUZ  Chapter 3 The Digital macro-environment Main topics: The rate of environmental change Technological forces Case Study: Soci...

DIGITAL MARKETING THE DIGITAL MACRO-ENVIRONMENT WEEK 4 Asst. Prof. Dr. Gülsüm VEZİR OĞUZ  Chapter 3 The Digital macro-environment Main topics: The rate of environmental change Technological forces Case Study: Social media – Do celebrities call all the shots? 2  Learning objectives Identify how the macro-environment affects an organisation’s digital marketing strategy, planning, implementation and performance Consider legal, moral and ethical constraints of digital marketing Identify aspects of each of the macro-environmental forces that are particularly relevant to digital marketing. 3  Questions for marketers How important are macro environmental changes to my digital marketing strategy? How can I ensure my online marketing activities are consistent with evolving culture and ethical standards of online communities? How important is it for me to understand technological innovations? Which laws am I subject to when marketing online? How is social media marketing likely to impact on my business and what changes do I need to make in order to react to social changes in the online marketplace? What are the political influences which could influence my digital marketing planning? How do I keep up in a constantly changing marketing environment? 4  Introduction We explore the macro-environment forces focusing on the potential relevance of each to digital marketing strategy. In the marketing literature, there are widely used mnemonics, which aim to act as an aide-memoire for the macro-environmental forces, e.g., PEST, SLEPT, PESTLE, where each letter represents a slightly different arrangement of the following macro forces: Political forces Economic forces Social forces Technological forces Legal forces Environmental forces 5  Key micro-environment factors Technological forces changes in technology which influence marketing opportunities; create new product development opportunities; introduce new ways to access target markets through channel integration; create new forms of access platforms and applications. Economic forces cause variation in economic conditions; affect trading opportunites; influ- ence consumer spending and business performance; have significant implications for digital marketing planning. Political forces national governments and transnational organisations have an important role in determining the future adoption and control of the Internet and the rules by which it is governed. Legal forces determine the methods by which products can be promoted and sold online. Laws and ethical guidelines that seek to safeguard individuals’ rights to privacy and busi- ness to free trade. Social forces cultural diversity among digital communities, which influences use of the Internet and the services businesses provided online 6  The rate of environmental change In the digital world, changes in market forces are increasingly rapid. Firms should respond to these changes, emerging opportunities and threats by developing strategic agility. 7  Technological forces In the digital world, changes in market forces are increasingly rapid. Firms should respond to these changes, emerging opportunities and threats by developing strategic agility. Key factors to consider: Internet technology Cyber security How to develop secure systems Mobile and SMS messaging and applications Mobile Apps Wi-Fi and Bluetooth wireless applications Emerging technologies 8  A short introduction to Internet technology Internet The physical network World Wide Web The World Wide Web is that links computers across the a medium for publishing information and globe. It consists of the providing services on the Internet. It is infrastructure of network accessed through web browsers, which servers and communication display site content on different web links between them that are pages. The content making up websites used to hold and transport the vast amount of information. Web server Used to store the Web browser Browsers such as Google web pages accessed by web Chrome, Mozilla Firefox, Apple Safari and browsers. They may also Microsoft Internet Explorer provide an easy contain databases of customer method of accessing and viewing or product information, which information stored as HTML web can be queried and retrieved documents on different web servers. using a browser. 9  A short introduction to Internet technology Streaming media server A specialist server Uniform (universal) resource used to broadcast audio (e.g. podcasts) or locator (URL) A web address video (e.g. IPTV or webcast presentations). used to locate a web page on Served streams can be unicast (a separate a web server. copy of stream is served for each recipient), multicast (recipients share streams) or peer-to- peer where the media is shared between different recipient’s computers using a Bitorrent or Kontiki approach favoured by distributors of TV programmes such as the BBCs iPlayer. 10  A short introduction to Internet technology http://www.domain-name.extension/filename.html The ‘domain-name’ refers to the name of the web server and is usually selected to be the same as the name of the company, and the extension will indicate its type. The ‘extension’ is also commonly known as the generic top-level domain (gTLD). Common gTLDs are:.com represents an international or American company(www.travelocity.com).org are not-for-profit organisations (e.g. www.greenpeace.org).mobi was introduced in 2006 for sites configured for mobile phones.net is a network provider (e.g. www.amakai.net) There are also country code top-level domains (ccTLDs) maintained by ICANN e.g.:.co.uk represents a company based in the UK (e.g. www.thomascook.co.uk).au,.ca,.de,.es,.fi,.fr,.it,.nl, etc. represent other countries (the co.uk syntax is an anomaly!).ac.uk is a UK-based university or other higher education institution (e.g. www.cranfield. ac.uk).org.uk is for an organisation focusing on a single country (e.g. www.mencap.org.uk 11  URL strategy URL strategy A defined approach to forming URLs including the use of capitalisation, hyphenation and subdomains for different brands and different locations. This has implications for promoting a website offline through promotional or vanity URLs, search engine optimisation and findability. A clean URL which fits many of these aims is http://www.domain. com/folder-name/ document-name. Care must be taken with capitalisation since Linux servers parse capitals differently from lower- case letters. 12  How does the Internet work? Client–server The client–server architecture consists of client computers such as PCs sharing resources such as a database stored on a more powerful server computer. Internet service provider A provider enabling home or business users a connection to access the Internet. They can also host web-based applications. Backbones High-speed communications links used to enable Internet communications across a country and internationally. 13  Infrastructure components of the Internet Static (fixed) web page A page on the web server that is invariant. Dynamic web page A page that is created in real time, often with reference to a database query, in response to a user request. Transaction log file A web server file that records all page requests. Web analytics Techniques used to assess and improve the contribution of e-marketing to a business, including reviewing traffic volume, referrals, clickstreams, online reach data customer satisfaction surveys, leads and sales. 14  Figure 3.2 Information exchange between a web browser and a web server 15  Web page standards Content Content is the design, text and graphical information that forms a web page. Good content is the key to attracting customers to a website and retaining their interest or achieving repeat visits. 16  Text information – HTML (Hypertext Markup Language) HTML (Hypertext Markup Language) A standard format used to define the text and layout of web pages. HTML files usually have the extension.HTML or.HTM. Cascading style sheets (CSS) Enable web designers to define standard styles (e.g. fonts, spacing and colours) to hypertext mark-up language documents. By separating the presentation style of documents from the content of documents, CSS simplifies web authoring and site maintenance since style can be defined across a whole site (or sections of sites). 17  Text information and data – XML (eXtensible Markup Language) Metadata Literally, data about data – a format describing the structure and content of data. XML or eXtensible Markup Language A standard for transferring structured data, unlike HTML which is purely presentational. 18  Cyber security From a consumer or merchant point of view, these are the main security risks involved in an e-commerce transaction: Confidential details or passwords accessed on user’s computer, for example through keylogging software or malware. Transaction or credit card details stolen in transit, for example through ‘packet sniffing’ software. Customer’s credit card details stolen from merchant’s server, for example through hacking. Customer’s details accessed by company staff (or through a hacker who is in the building and has used ‘social engineering’ techniques to find information). Merchants or customers are not who they claim to be and the innocent party can be drawn into a fraudulent trading situation. 19  Approaches to developing secure systems There are two main methods of encryption using digital certificates or ‘keys’ Digital certificates (keys) Consist of keys made up of large numbers that are used to uniquely identify individuals. Symmetric encryption Both parties to a transaction use the same key to encode and decode messages. Asymmetric encryption Both parties use a related but different key to encode and decode messages 20  Digital signatures Digital signature A method of identifying individuals or companies using public-key encryption. 21  The public-key infrastructure (PKI) and certificate authorities 22  Secure Electronic Transaction (SET) Secure Electronic Transaction A standard for public-key encryption intended to enable secure e-commerce transactions, lead-developed by Mastercard and Visa. Payment system Method of transferring funds from a customer to a merchant. Micropayment Digital cash systems that allow very small sums of money to be transferred, but with lower security such small sums do not warrant credit card payment because processing is too costly. 23  SMS messaging Short Message Service (SMS) The formal name for text messaging. 24  Mobile apps Mobile apps A software application that is designed for use on a mobile phone, typically downloaded from an App store. iPhone apps are best known, but all smartphones support the use of apps which can provide users with information, entertainment or location-based services such as mapping. 25  Social location-based marketing through mobile Social location-based marketing Where social media tools give users the option of sharing their location, and hence give businesses the opportunity to use proximity or location- based marketing to deliver targeted offers and messages to consumers and collect data about their preferences and behaviour. Businesses can offer consumers benefits to check-in, for example, to gain points, be the most regular visitor to that location, to gain rewards and prizes from advertisers, to share their location with friends, and, in the case of events, to meet like-minded people. Of course the privacy implications of this relatively new technology must be carefully reviewed. 26  QR Codes Quick Response code A-two-dimensional matrix bar code. QR codes were invented in Japan where they are a popular type of two-dimensional code used for direct response. Wi-Fi Wi-Fi (wireless fidelity) A high-speed wireless local-area network enabling wireless access to the Internet for mobile, office and home user 27  Bluetooth wireless applications Bluetooth technology A wireless standard for transmission of data between devices over short ranges (less than 10m). Proximity marketing Marketing messages are delivered in real- time according to customers’ presence based on the technology they are carrying, wearing or have embedded. Bluecasting is the best known example. 28  Emerging Technologies Assessing the marketing value of technology innovation 29  Commercial application of the diffusion of innovation curve Source: Gartner Group 30  Figure 3.6 Alternative responses to changes in technology 31