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Slide 1.

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
Slide 1.2

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
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 digital media introduce
compared to existing marketing communications
models?

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.4

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
Slide 1.5

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
Slide 1.6

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
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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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 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
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 pp. 12–13

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.10

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
Slide 1.11

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
Slide 1.12

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
Slide 1.13

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
Slide 1.14

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
Slide 1.15

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
Slide 1.16

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
Slide 1.17

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
Slide 1.18

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
Slide 1.19

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
Slide 1.20

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
Slide 1.21

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

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.22

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
Slide 1.23

Table 1.4 Key marketing communications concepts

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.24

Table 1.4 Key marketing communications concepts (Continued)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.25

Figure 1.10 RACE: Reach–Act (Interact)–Convert–Engage


Source: Smart Insights (2010)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.26

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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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 and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.28

Figure 1.12 Evolution of web technologies


Source: Adapted from Spivack (2007)

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.29

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
Slide 1.30

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
Slide 1.31

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
Slide 1.33

Figure 1.17 Travel Republic (www.travelrepublic.co.uk)

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
influence 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.

Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.35

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
Slide 1.36

Content marketing approaches

Figure 1.18 The Content Marketing Hub


Source: Smart Insights (2015a)

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

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