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Part 1
Digital marketing fundamentals

Chapter 1
Introducing digital marketing

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 digital marketing and traditional
marketing.

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Online opportunities

Timeline of online services indicating innovation in business model or


Table 1.1
marketing communications approach
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Online opportunities (Continued)

Timeline of online services indicating innovation in business model or


Table 1.1
marketing communications approach (Continued)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.1 Google timeline


Source: Google Corporate Timeline: www.google.com/about/corporate/company/timeline/

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 life cycle)
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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Which platforms are involved?


What ways can you access the
Web or Internet through a browser?
A. Desktop, laptop and notebook platforms
1. Desktop browser-based platform e.g. IE, Chrome, Safari
2. Desktop apps e.g. Apple App Store
3. Email platforms
4. Feed-based and API data Exchange platforms e.g. RSS feeds, Twitter,
Facebook
5. Video-marketing platforms e.g. Online TV channels
B. Mobile phone and tablet platforms
1. Mobile operating system and browser
2. Mobile-based apps e.g. Apple iOS, Google Android
C. Other hardware platforms
1. Gaming platforms e.g. PlayStation, Nintendo
2. Indoor and outdoor kiosk-type apps e.g. interactive kiosks, augmented
reality
3. Interactive signage e.g. Touchscreen, Bluetooth, QR codes
4. Wearables e.g. Apple Watch, Google Glass
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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YouTube video explaining the Tesco Homeplus Virtual Subway Store


Figure 1.4
presence in South Korea
Source: www.youtube.com/watch?v=fGaVFRzTTP4

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.2 The intersection of the three key online media types

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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How do digital technologies


support marketing

Identifying the Internet can be used for marketing


research to find out customers needs and wants.
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.
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?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Benefits of digital marketing The 5Ss

Table 1.2 The 5Ss of Internet marketing


Source: Chaffey and Smith (2012)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Summary and examples of transaction alternatives between businesses,


Figure 1.6
consumers and governmental organisations
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.7 The distinction between buy-side and sell-side e-commerce

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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
P&G
Portal or media site
Yahoo! Silicon.com
Social network or media site

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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 life cycle (e.g. through email
marketing).

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Applying the 7 Ss

1. Strategy
2. Structure
3. Systems
4. Staff
5. Style
6. Skills
7. Superordinate goals

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.9 A generic digital marketing strategy development process

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Introduction to Digital Marketing


Communications
Pay-per-click
Search engine optimisation
Affiliate marketing
E-mail marketing
Landing page
Rich media

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Table 1.4 Key marketing communications concepts

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Table 1.4 Key marketing communications concepts (Continued)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.10 RACE: ReachAct (Interact)ConvertEngage


Source: Smart Insights (2010)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.11 Six categories of e-communications tools or media channels


Source: Chaffey and Smith (2012)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Social Media Marketing

Monitoring and facilitating customer-customer


interaction and participation throughout the web
to encourage positive engagement with a
company and its brands

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.11 Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Benefits of digital media

6 Is of the e-marketing mix:


1. Interactivity (Figure 1.13)
2. Intelligence
3. Individualization (Figure 1.14)
4. Integration (Figures 1.15 &1.16)
5. Industry restructuring
6. Independence of location

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Summary of communication models for (a) traditional media,


Figure 1.13
(b) new media
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Summary of degree of individualisation for: (a) traditional media


Figure 1.14
(same message); (b) new media (unique messages and more information
exchange between customers)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.15 Channels requiring integration as part of integrated e-marketing


strategy
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Figure 1.16 The role of mixed-mode buying in Internet marketing

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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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
inuence an individual has with a brand over time.
Forrester
Permission marketing:
A value exchange in return for communications and
profiling, e.g. E-mail opt-in, Like of brand on
Facebook.
Content marketing
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Content marketing activities

Define content engagement value


Create content media/assets
Content syndication (influencer outreach)
Content participation
Content access platform.

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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Key challenges of digital


communications
Complexity
Responding to competitors
Responding to changes in technology
Cost
Attention

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e Pearson Education Limited 2016

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