Digital Marketing Teigland 2011

Digital MarketingMay 2011

Dr. Robin TeiglandStockholm School of Economics

robin.teigland@hhs.sewww.knowledgenetworking.org

www.slideshare.net/eteiglandtwitter: RobinTeigland

Ways to engage…

The use of Twitter is highly encouraged!−Me: @robinteigland−Notes: #Mktg211

YEL

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Background to digital marketing

Reshaping the marketing mix – 4Ps

Digital marketing implementation

Guest speaker – Paul DiGangi (slides posted

separately)

Today’s discussion

What is digital marketing?

The application of digital technologies that form channels to market…− Internet (2D to 3D)− Mobile communications− Interactive television − Interactive traditional media (billboards, print)− Wireless

…..to achieve corporate goals through meeting and exceeding customer needs better than the competition.

Adapted from Jobber 20075

Key elements of the digital age

Jobber 2007 6

7

Social Media Revolution

http://www.youtube.com/watch?feature=iv&annotation_id=annotation_6152

45&v=QSQrNUrGFr0

How are these trends affecting the traditional marketing mix?

A new consumer is appearing…

Prensky 2001, Beck and Wade 2004, Mahaley 2008

“Digital Immigrants”“Digital Natives”

..using a growing number of social media

Adapted from FredCavazza.net

Technology that enhances experiences and adds depth to the

relationships formed among individuals and/or organizations…

which is driven by users…

contributing content.

DiGangi 2010

Drivers of changeIn

crease

dIn

tera

ctivity

DiGangi 2010

Content created by a user to be used by a user

Shifting sources of value

From organization-generated content (OGC) to user-generated content (UGC)

Content created by an organization to sell to a user

Di Gangi 2008

http://techcrunch.com/2011/02/10/meeker-mobile-slides/

13

Background to digital marketing

Reshaping the marketing mix – 4Ps

Digital marketing implementation

Guest speaker – Paul DiGangi

Today’s discussion

Reshaping the marketing mix

Jobber 2007 14

Digital marketing media

Internet (2D and 3D, virtual worlds)

Mobile communications and wireless

Interactive billboards and print

Interactive television

Augmented reality

Adapted from Jobber 2007 15

Reshaping price

16

TransparentFlexibleDynamic

Jobber 2007

Real-time price comparisons

17http://www.youtube.com/watch?v=4sqo9RiIYCY&feature=related

Purchase with credit card, PayPal, mobile phone or in physical stores (such as Walmart),

Facebook takes 30% of revenue In study with 3000 respondents: Will you be buying

and spending Facebook Credits? – 17 % Yes, absolutely – 58 % No, absolutely not– 25 % I have to learn more

Predictions by Social Times Pro, May 2011− Facebook Credits will likely have nearly 25 million users in

next 12 mos.− By 2016 Facebook Credits will probably have 100 million

users

Group 8b , Course 2304, Media Management 2011

Facebook Credits – A new economy?

Reshaping product

19

Individualized

Customized

Digitalized

But this is only the beginning….so much more to

come!

Reshaping place

20

Global, virtual, & always open• Distance no longer a cost

• Business location irrelevant• 24/7 real-time trading

Jobber 2007

http://latesttechworld.com/2011/04/best-online-shopping-websites/

Reshaping promotion

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Permission-basedInstantaneous – real time

InteractiveJobber 2007

Reshaping promotion - Interactivity

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www.mobilitysite.com

www.bbc.co.uk/

Convergence of

technologies

Reshaping promotion - Interactivity

Interactive ads in traditional print media− Augmented reality, mobile phones− http://www.youtube.com/watch?v=RsZTbIjLHNA&feature=related (zoo)− http://www.youtube.com/watch?v=S-G8u-01t0k&feature=PlayList&p=46ED12

AC63B128FC&playnext=1&playnext_from=PL&index=1 (car)

− http://www.youtube.com/watch?v=rFuUFeQIdpk (angel)

Interactive billboards− Video, mobile phones− http://www.youtube.com/watch?v=BK7qfpvod2w&feature=related (Shanghai)− http://www.youtube.com/watch?v=5-bNZRAypgQ&feature=PlayList&p=CDD9F

931D4215694&playnext=1&playnext_from=PL&index=1 (Nokia)

Interactive video advertisements− Video, internet− http://www.youtube.com/watch?v=tJrq-ZwBehA&feature=PlayList&p=B74C1D

B8C72A381E&index=4 (Volvo)

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Viral marketing

Encourages users of product or service supplied by business to encourage friends to join in as well

Haag & Cummings 2008 25

http://www.ignitesocialmedia.com/viral-marketing-examples/

IKEA

http://www.youtube.com/watch?v=0TYy_3786bo

Groupon and Facebook Deals

www.rabble.se

Social

Mobile Location

http://www.relenet.com/

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Background to digital marketing

Reshaping the marketing mix – 4Ps

Digital marketing implementation

Guest speaker – Paul DiGangi

Today’s discussion

Inc 500 companies report success

Barnes, 2010 Inc. 500 Update: Most Blog, Friend And Tweet But Some Industries Still Shun Social Media

But most ”traditional” companies…

Organizational use

Employee use

No use

Ban use

One-way “broadcasting”

Allow use

Encourage use

Two-wayconversations

… are here

Teigland, The Network Survey, 2010

Reshaping the marketing mix

Jobber 2007 34

Stages in digital marketing planning

Jobber 2007

1. What are the drivers?

2. What is the environment?

3. What is the objective?

4. How can you create superior value?

5. How should activities be integrated?

6. What competencies are needed? Etc.

7. What should be measured?

35

Marketing audit and SWOT analysis

Customer connectivity Percent target customers have access to the

relevant digital channelsCustomer channel usage

How often target customers use the digital channels

Results generatedPercent of sales transacted through a

particular digital channelMarketplace impact

How important the particular channel is for the target market

Jobber 2007 36

Marketing objectives and strategy

How to create competitive advantage?- Lower prices- Lower costs- Improved service quality- Greater product variety- Improved product

customization

How to deliver superior value to the customer?

Jobber 2007 37

Social media enable communities

Why do people participate?

http://www.slideshare.net/vnnw/social-media-marketing-english-edition-4470494

Why do people participate?

Users create their own meanings

41http://www.youtube.com/watch?v=ai-RMD39aos

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There is nowhere to hide

http://www.youtube.com/watch?v=t8XxcOj3SeoFortune, Rey 2008

Monitor social media sites and react in a timely fashion

http://www.slideshare.net/themoleskin/introduction-to-social-meida?from=ss_embed

Transparency, transparency, transparency

http://twitter.com/#!/zappos

Core Value #6: "Build Open and Honest

Relationships with Communication

Who are the Twitter influencers?

http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/

Word cloud of Starbucks’ top 50,000 consumer profiles

http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/

A day in the life of a Foursquare user

http://www.briansolis.com/2011/01/checking-in-to-the-state-of-foursquare/

Benefits and limitations of digital technologies to customers

Benefits Limitations

Convenience Delivery times

Access to information Information overload

Enhanced functionality Access to technology

New products and services

Security

Lower prices Cost implications

Jobber 2007 48

Benefits and limitations of digital technologies to organizations

Benefits LimitationsInvestment reduction Operational costsReduced order costs Set-up costsImproved distribution Short-termism

Opportunity for reduced selling costs

High-cost content

Relationship building Connective to transactional relationships

Customised promotion Over-specialization

New market opportunities

Technological deserts

Marketing research opportunities

AuthenticityJobber 2007 49

The 5 Is of digital marketing

Identification – customer specifics

Individualism – tailored for lifetime purchases

Interaction – dialogue to learn about customers’ needs

Integration – of knowledge of customers throughout company

Integrity – develop trust through non-intrusive marketing such as permission marketing

Peppers & Roger 1997

Will it replace the traditional marketing mix?

50

Some things do not change

Innovation Exchange

Exchange Trust

Trust Relationships

Relationships Interaction

52

Background to digital marketing

Reshaping the marketing mix – 4Ps

Digital marketing implementation

Guest speaker – Paul DiGangi (slides posted

separately)

Today’s discussion

53

Thanks and see you in world!

Karinda Rhode

aka Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

twitter::robinteigland

Sources and acknowledgements− Allen, JP,

https://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdf (Accessed 24 April 2009).

− Chaffey, D. 2009. Benchmarking to improve your digital marketing strategy, www.davechaffey.com/blog/.

− Deloitte, 2008. 2008 Tribalization of Business Study. − DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.− Di Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring

Engagement Behaviors in User-generated Content Web Sites, Colloquium at Florida State University College of Business

− Gurteen, D. Online Information 2007: KM goes Social, http://www.slideshare.net/dgurteen/km-goes-social-194717

− Haag & Cummings, 2008. Information Systems Essentials, McGraw-Hill/Irvine.− Jobber, 2007. Principles & Practices of Marketing, Fifth Edition, McGraw-Hill.− Poole, IBM: Web 2.0 goes to work,

http://www.slideshare.net/jward5519/ibm-web-2-0-goes-to-work-presentation− Wesch, M. http://www.youtube.com/watch?v=TPAO-

lZ4_hU&feature=PlayList&p=F3C55BF4FAEC5737&playnext=1&playnext_from=PL&index=22

Acknowledgements− Allen, JP, University of San Francisco− Mahaley, S., Duke Corporate Education− Fuller, R., Goh, S., Wasko, M., Florida State University, College of Business− Paul DiGangi, Western Carolina University 54