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Slides from my lecture on digital marketing to first year Bachelor students at the Stockholm School of Economics in May 2011. Many of the slides are based on David Jobber's textbook: http://www.amazon.co.uk/Principles-Practice-Marketing-David-Jobber/dp/0077114159.
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Digital MarketingMay 2011
Dr. Robin TeiglandStockholm School of Economics
www.slideshare.net/eteiglandtwitter: RobinTeigland
Ways to engage…
The use of Twitter is highly encouraged!−Me: @robinteigland−Notes: #Mktg211
4
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
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
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
13
Background to digital marketing
Reshaping the marketing mix – 4Ps
Digital marketing implementation
Guest speaker – Paul DiGangi
Today’s discussion
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
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
22
Permission-basedInstantaneous – real time
InteractiveJobber 2007
Reshaping promotion - Interactivity
23
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)
24
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
30
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
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
Why do people participate?
http://www.slideshare.net/vnnw/social-media-marketing-english-edition-4470494
42
There is nowhere to hide
http://www.youtube.com/watch?v=t8XxcOj3SeoFortune, Rey 2008
Monitor social media sites and react in a timely fashion
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 [email protected]
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
