Ch01 165d3
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Slide 1.1
Part 1 Digital marketing fundamentals Chapter 1 Introducing digital marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.2
Learning objectives • Evaluate the relevance 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.
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.3
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 the digital media introduce compared to existing marketing communications models?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.4
Online Opportunities
Timeline of online services indicating innovation in business model or marketing communications approach Table 1.1
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.5
Figure 1.1
Google timeline
Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.6
Definitions - warning • Which definition is used isn’t so important, within a company definitions help: – Scope the digital marketing activities that need to be managed – Explain opportunities for new marketing approaches – digital transformation – Highlights some risks to be managed
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.7
What is it? Introducing the scope of digital marketing • “Achieving marketing objectives through applying digital technologies” – How?
• Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing
– How?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.8
A more in-depth definition • Customer-centric digital marketing involves: • • • •
• •
Applying… Digital technologies which form online channels… (Web, e-mail, databases, mobile, iPTV) to… Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process and customer lifecycle) through… Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.9
Which platforms are involved? • What ways can you access the Web or Internet through a browser? – Dual-screening is important – For suggestions, see p 12-13
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.10
Figure 1.2
Qype UK (www.qype.co.uk) Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.11
Figure 1.3
The intersection of the three key online media types Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.12
How do digital technologies contribute to marketing?
• The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability • Give examples of how the Internet (web and e-mail) achieves these?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.13
How do digital technologies marketing
• Identifying – the Internet can be used for marketing research to find out customers’ needs and wants (Chapters 7 and 10). • Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation to e-marketing as explained in Chapters 2, 3 and 4. • Satisfying – a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched? These issues of customer relationship management are discussed further in Chapters 6 and 7. Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.14
YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South Korea. Figure 1.4
Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.15
Benefits of digital marketing – The 5Ss
Table 1.2
The 5 Ss of Internet marketing
Source: Chaffey and Smith, 2008
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.16
Applications of digital marketing • • • • • • •
An advertising medium A direct-response medium A platform for sales transactions A lead-generation method A distribution channel A customer service mechanism A relationship-building medium
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.17
Figure 1.5
North West Supplies Ltd site (www.northwestsupplies.co.uk)
Source: Opportunity Wales
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.18
Summary and examples of transaction alternatives between businesses, consumers and governmental organisations Figure 1.6
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.19
E-business and e-commerce • You are attending an interview for a job in an E-commerce department. You are asked to: … • Define e-commerce • Explain the relationship between e-commerce and e-business?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.20
Figure 1.7
The distinction between buy-side and sell-side e-commerce
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.21
• • • • •
What are the challenges of managing strategy!
Unclear responsibilities for digital Setting objectives Lack of budget Budget wasted through experiments/duplication Developing new propositions and campaigns to compete • Lack of measurement – i.e. No plan!
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.22
Why is a digital strategy needed? • To set clear goals for digital channels • To align with business strategy (avoid ad-hoc approaches) • Create a specific online value proposition (OVP) • Specify communications tools to drive visitors • Integrate digital and traditional channels • Manage customer lifecycle (e.g. through email marketing)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.23
Different overlapping forms of web presence Give an example of each • Transactional e-commerce site: • Examples – Amazon, Dell • Services-oriented/relationship building – Accenture, British Gas
• Brand Building site – Tango, Guinness
• Portal or media site – Yahoo! Silicon.com
• Social network or media site • Note that these types overlap Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.24
Figure 1.8
A generic digital marketing strategy development process
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.25
Figure 1.9
RACE: Reach-Act (Interact)-Convert-Engage.
Source: Smart Insights (2010)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.26
Table 1.4
Key marketing communications concepts
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.27
Six categories of e-communications tools or media channels (Chaffey and Smith, 2008) Figure 1.10
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.28
Figure 1.11
Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.29
Figure 1.12
Evolution of web technologies
Source: Adapted from Spivack (2007)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.30
Differences of digital media • Split into groups • For each of 1.13 to 1.16 students summarise differences between traditional media and digital media and how they can be used to advantage by companies
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.31
Figure 1.13
Summary of communication models for (a) traditional media, (b) new media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.32
Summary of degree of individualisation for: (a) traditional media (same message); (b) new media (unique messages and more information exchange between customers) Figure 1.14
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.33
Figure 1.15
Channels requiring integration as part of integrated e-marketing strategy Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.34
Figure 1.16
The role of mixed-mode buying in Internet marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.35
Table 1.5
An interpretation of the differences between the old and digital media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.36
Figure 1.17
Travel Republic (www.travelrepublic.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.37
Fundamental digital marketing concepts • Customer engagement: – “Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand” cScape – “the level of involvement, interaction, intimacy, and influence an individual has with a brand over time” Forrester
• Permission marketing: – A value exchange in return for communications and profiling, e.g. Email opt-in, Like of brand on Facebook
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.38
Content marketing activities • • • • •
Define content engagement value Create content media / assets Content syndication (influencer outreach) Content participation Content access platform
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.39
Content marketing approaches
All available from: http://pinterest.com/smartinsights/our-infographics/
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Part 1 Digital marketing fundamentals Chapter 1 Introducing digital marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.2
Learning objectives • Evaluate the relevance 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.
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.3
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 the digital media introduce compared to existing marketing communications models?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.4
Online Opportunities
Timeline of online services indicating innovation in business model or marketing communications approach Table 1.1
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.5
Figure 1.1
Google timeline
Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.6
Definitions - warning • Which definition is used isn’t so important, within a company definitions help: – Scope the digital marketing activities that need to be managed – Explain opportunities for new marketing approaches – digital transformation – Highlights some risks to be managed
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.7
What is it? Introducing the scope of digital marketing • “Achieving marketing objectives through applying digital technologies” – How?
• Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing
– How?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.8
A more in-depth definition • Customer-centric digital marketing involves: • • • •
• •
Applying… Digital technologies which form online channels… (Web, e-mail, databases, mobile, iPTV) to… Contribute to marketing activities aimed at achieving profitable acquisition and retention of customers (within a multi-channel buying process and customer lifecycle) through… Improving customer knowledge (of their profiles, behaviour, value and loyalty drivers), then delivering integrated targeted communications and online services that match their individual needs
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.9
Which platforms are involved? • What ways can you access the Web or Internet through a browser? – Dual-screening is important – For suggestions, see p 12-13
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.10
Figure 1.2
Qype UK (www.qype.co.uk) Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.11
Figure 1.3
The intersection of the three key online media types Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.12
How do digital technologies contribute to marketing?
• The definition of marketing by the Chartered Institute of Marketing (http://www.cim.co.uk/) is: • Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability • Give examples of how the Internet (web and e-mail) achieves these?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.13
How do digital technologies marketing
• Identifying – the Internet can be used for marketing research to find out customers’ needs and wants (Chapters 7 and 10). • Anticipating – the Internet provides an additional channel by which customers can access information and make purchases – evaluating this demand is key to governing resource allocation to e-marketing as explained in Chapters 2, 3 and 4. • Satisfying – a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched? These issues of customer relationship management are discussed further in Chapters 6 and 7. Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.14
YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South Korea. Figure 1.4
Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.15
Benefits of digital marketing – The 5Ss
Table 1.2
The 5 Ss of Internet marketing
Source: Chaffey and Smith, 2008
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.16
Applications of digital marketing • • • • • • •
An advertising medium A direct-response medium A platform for sales transactions A lead-generation method A distribution channel A customer service mechanism A relationship-building medium
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.17
Figure 1.5
North West Supplies Ltd site (www.northwestsupplies.co.uk)
Source: Opportunity Wales
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.18
Summary and examples of transaction alternatives between businesses, consumers and governmental organisations Figure 1.6
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.19
E-business and e-commerce • You are attending an interview for a job in an E-commerce department. You are asked to: … • Define e-commerce • Explain the relationship between e-commerce and e-business?
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.20
Figure 1.7
The distinction between buy-side and sell-side e-commerce
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.21
• • • • •
What are the challenges of managing strategy!
Unclear responsibilities for digital Setting objectives Lack of budget Budget wasted through experiments/duplication Developing new propositions and campaigns to compete • Lack of measurement – i.e. No plan!
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.22
Why is a digital strategy needed? • To set clear goals for digital channels • To align with business strategy (avoid ad-hoc approaches) • Create a specific online value proposition (OVP) • Specify communications tools to drive visitors • Integrate digital and traditional channels • Manage customer lifecycle (e.g. through email marketing)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.23
Different overlapping forms of web presence Give an example of each • Transactional e-commerce site: • Examples – Amazon, Dell • Services-oriented/relationship building – Accenture, British Gas
• Brand Building site – Tango, Guinness
• Portal or media site – Yahoo! Silicon.com
• Social network or media site • Note that these types overlap Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.24
Figure 1.8
A generic digital marketing strategy development process
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.25
Figure 1.9
RACE: Reach-Act (Interact)-Convert-Engage.
Source: Smart Insights (2010)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.26
Table 1.4
Key marketing communications concepts
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.27
Six categories of e-communications tools or media channels (Chaffey and Smith, 2008) Figure 1.10
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.28
Figure 1.11
Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.29
Figure 1.12
Evolution of web technologies
Source: Adapted from Spivack (2007)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.30
Differences of digital media • Split into groups • For each of 1.13 to 1.16 students summarise differences between traditional media and digital media and how they can be used to advantage by companies
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.31
Figure 1.13
Summary of communication models for (a) traditional media, (b) new media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.32
Summary of degree of individualisation for: (a) traditional media (same message); (b) new media (unique messages and more information exchange between customers) Figure 1.14
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.33
Figure 1.15
Channels requiring integration as part of integrated e-marketing strategy Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.34
Figure 1.16
The role of mixed-mode buying in Internet marketing
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.35
Table 1.5
An interpretation of the differences between the old and digital media
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.36
Figure 1.17
Travel Republic (www.travelrepublic.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.37
Fundamental digital marketing concepts • Customer engagement: – “Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand” cScape – “the level of involvement, interaction, intimacy, and influence an individual has with a brand over time” Forrester
• Permission marketing: – A value exchange in return for communications and profiling, e.g. Email opt-in, Like of brand on Facebook
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.38
Content marketing activities • • • • •
Define content engagement value Create content media / assets Content syndication (influencer outreach) Content participation Content access platform
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Slide 1.39
Content marketing approaches
All available from: http://pinterest.com/smartinsights/our-infographics/
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
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