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Slide 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 isnt 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

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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 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

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Figure 1.2

Qype UK (www.qype.co.uk)
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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

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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 et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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 (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

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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

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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

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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 et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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

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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 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

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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

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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

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Table 1.4

Key marketing communications concepts

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Figure 1.17

Travel Republic (www.travelrepublic.co.uk)

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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. Email opt-in, Like of brand on Facebook

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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 et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition Pearson Education Limited 2013

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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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