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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Part 1
Digital marketing fundamentals

Chapter 1
Introducing digital marketing
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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.
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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?
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Online Opportunities
Table 1.1 Timeline of online services indicating innovation in business model or
marketing communications approach
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.1 Google timeline
Source: Google Corporate Timeline: www.google.com/about/corporate/company/history.html
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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?
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.2 Qype UK (www.qype.co.uk)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.3 The intersection of the three key online media types
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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?
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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.
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.4 YouTube video explaining the Tesco Homeplus Virtual Subway Store
presence in South Korea.
Source: http://www.youtube.com/watch?v=fGaVFRzTTP4
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Benefits of digital marketing The 5Ss
Table 1.2 The 5 Ss of Internet marketing
Source: Chaffey and Smith, 2008
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.5 North West Supplies Ltd site (www.northwestsupplies.co.uk)
Source: Opportunity Wales

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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Figure 1.6 Summary and examples of transaction alternatives between
businesses, consumers and governmental organisations
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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?

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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Figure 1.7 The distinction between buy-side and sell-side e-commerce
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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!
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Figure 1.8 A generic digital marketing strategy development process
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edition Pearson Education Limited 2013
Figure 1.9 RACE: Reach-Act (Interact)-Convert-Engage.
Source: Smart Insights (2010)
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edition Pearson Education Limited 2013
Table 1.4 Key marketing communications concepts
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edition Pearson Education Limited 2013
Figure 1.10 Six categories of e-communications tools or media channels
(Chaffey and Smith, 2008)
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edition Pearson Education Limited 2013
Figure 1.11 Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
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edition Pearson Education Limited 2013
Figure 1.12 Evolution of web technologies
Source: Adapted from Spivack (2007)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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

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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Figure 1.13 Summary of communication models for (a) traditional media,
(b) new media
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Figure 1.14 Summary of degree of individualisation for: (a) traditional media
(same message); (b) new media (unique messages and more information
exchange between customers)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
Figure 1.15 Channels requiring integration as part of integrated e-marketing
strategy
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th
edition Pearson Education Limited 2013
Figure 1.16 The role of mixed-mode buying in Internet marketing
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edition Pearson Education Limited 2013
Table 1.5 An interpretation of the differences between the old and digital media
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edition Pearson Education Limited 2013
Figure 1.17 Travel Republic (www.travelrepublic.co.uk)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
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edition Pearson Education Limited 2013
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
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Content marketing activities
Define content engagement value
Create content media / assets
Content syndication (influencer outreach)
Content participation
Content access platform
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5
th
edition Pearson Education Limited 2013
Content marketing approaches
All available from: http://pinterest.com/smartinsights/our-infographics/