BTEC Unit 24 - Alex Lok Open.netaes.alexlokopen.net/unit24/slides1.pdf · BTEC Unit 24 Digital Marketing 17 1A Digital marketing landscape ¾ Issues ¾ Twitter works well in the States

BTEC Unit 24

Digital Marketing

Part 1 - May 2017

BTEC Unit 24 Digital Marketing 2

Agenda

Introduction to the Digital Marketing

Details of the assignments

Group project report requirements

LO1 Demonstrate an understanding of the

opportunities, challenges and impact of the

digital environment

LO2 Examine key digital tools, platforms and

channels, comparing and contrasting bricks and

mortar and other physical channels


Digital Marketing

Digital marketing can assist in all elements

of marketing – providing new techniques

to identify, anticipate and satisfy customer

needs efficiently.

Together with e-commerce, digital

marketing is a subset of e-business that

involves the automation of all business

processes. (Chaffey and Smith, 2012)


Assignments

Background

Local chain stores selling electric appliances

Products: full range of electric appliances

Services: physical deliveries, on-site

installations, hotline, even user training


Assignments

Online-to-offline (O2O)

Consumers search the web sites for product

information

Consumers compare similar products and

seek for recommendations online

Consumers purchase selected products at the

physical stores – offline purchases


Assignments

Problems and issues

Drawback: high cost to maintain both online

shop and physical stores

Risk: channel cannibalisations

Online shop

Physical stores

Recommendations to the business owners

Identify the problems

Analyse and recommend possible digital tools

$

$


Requirements

3 to 5 members in a group

A written report with references

Group contract

Meeting agenda

Meeting minutes

Self reflection

Peer evaluation


References

Chaffey, D. and Ellis-Chadwick, F. (2012) Digital Marketing: Strategy, Implementation and Practice, 5th Ed, Harlow: Pearson.

Chaffey, D. and Smith, P. (2012) eMarketing eXcellence: Planning and Optimising your Digital Marketing, 4th Ed, Abingdon: Routledge.

Hemann, C. and Burbary, K. (2013) Digital Marketing Analytics: Making Sense of Consumer Data in a Digital World, Que Publishing.

Tapp, A., Whitten, I. and Matthew, H. (2014) Principles of Direct, Database and Digital Marketing, 5th Ed, Harlow: Pearson.


LO 1

Demonstrate an understanding of the

opportunities, challenges and impact of the

digital environment

1A The digital environment

1B Opportunities of digital marketing

1C Challenges and impacts of digital marketing


1A The digital environment

The digital environment

Digital marketing

Digital marketing landscape

Differences between online and offline

marketing

Key benefits of digital marketing


1A Digital marketing

Use of information technology to assist all

elements of marketing

Identify customer needs

Acquire customers from the web

Convert customers to business

Retain loyal customers

Automate processes to reduce cost and

increase efficiency



Use of information technology

Web presence

Information reach

Information rich

Push technique

Identify customer needs

Click stream analysis

Hit rate analysis



Acquire visitors

Convert leads

Retain customers

Source: Garrett Smith, Pitch + Pivot


1A Digital marketing landscape

Ranges of tools

Mobile

Web

Personalisation

Digital devices

Content

Advertising

Market-dependent

Source: Tyler Thomas



Example

Source: Pinterest.com



Another example

Source: Pinterest.com



Issues

Twitter works well in the States as Donald

Trump relies on it to communicate with the

public bypassing the traditional mass media

Twitter does not work in Hong Kong

Which one is dominating here?


1A Online and offline marketing

Online marketing

Same as digital marketing

Use of IT to assist all elements of marketing

Offline marketing

Use of offline media channels to create

awareness of products and services

Offline media: radio, television, newspaper,

magazine, billboard, poster, product catalog,

pamphlet, leaflet, road show, telemarketing



Differences Elements Online marketing Offline marketing

Market penetration High: easy to reach different

markets

Low: hard to reach different

markets

Approach to the customer Just through a ‘Click’ Long progress

Product promotion Cheap and fast Costly and time-consuming

Manpower Less people manage Large work force

Time 24 hours a day / 7 days a

week

Certain hour

Cost Low High



What are the differences in the industry

that the assignment concerned? Consider

Media in use e.g. web sites, newspaper, …

Messages in the media e.g. promotion, …

Market penetration effectiveness

Customer segment outreach

Information richness

Customer experience

Cost


1A Key benefits

Connect to customers online

Analyse customer needs

Optimise for conversion

Realise higher revenue

Respond to changes faster

Become more competitive


1A Key benefits

Connect to customers online

Maintain an effective 2-way communication channel

with consumers through desktops, tablets, smart

phones

Analyse customer needs

Track customers’ actions, decisions, and preferences to create true insight of customer needs

Optimise for conversion

Shorten the journey from awareness to lead

conversion yielding more business


1A Key benefits

Realise higher revenue

Increase digital outreach and generate higher

revenue

Respond to changes faster

Based on digital marketing data, observe and

adapt to trends and changes faster

Become more competitive

Establish competitive advantages based on

digital outreach and faster responsiveness


1A Key benefits

Evaluate the benefits of digital marketing

for the chain store being studied

Consider the extent of benefits being realised

List the benefits that can be actualised more

effectively

Identify ways to actualise these benefits


Tutorial

Select a chain store

List the local chain stores

Visit their web sites and physical stores

Evaluate and select one chain store as base

Consider the functions on web sites

Consider the number of physical stores and their

locations

Select the one which has problems to be resolved


Tutorial

Write the introduction

Assume a role as the report writer, such as

digital marketing consultant

Briefly describe the purposes of the report,

such as recommend digital marketing

solutions to the business owner


Tutorial

Write the background

Briefly describe the business model

Clearly define the problems

Describe the impact if the problems cannot be

resolved shortly


Tutorial

Write the digital environment

Introduce digital marketing and the landscape

Differentiate online and offline marketing

Explain the key benefits of digital marketing

Note to writing the report:

Use appropriate headings and numbering to label paragraphs

Do not show LO1, 1A, 1B, LO2, etc.


1B Opportunities

Opportunities of digital marketing

The importance of customer insight and

understanding in developing effective digital

marketing activities

Rise of online consumer power


1B Customer insight

Customer insight

Underlined need of customers

Customers may not be aware of until being

told

An opportunity for marketers

How to get?

Deep understanding of customer attitude and

behaviour


1B Customer insight

Example

Customer insight: aged people refuse to use

compact size smart phones

Customer underlined need: aged people need

larger screen size smart phones, easy to

operate mobile applications

Opportunities for software marketers: develop

mobile applications with options of larger font

size, contrasting colour even on compact size

smart phones


1B Customer insight

Question

How to get the information (customers’ underlined needs) even the customers do not

aware of?

Answer

Customer click stream analysis

Focused group interview

Road show of new product


1B Developing DM activities

Digital marketing activities can take place

in

Content marketing e.g. blog

Search engine marketing e.g. Google Adword

Social media e.g. facebook, Twitter, LinkedIn

Instant messaging e.g. WhatsApp, WeChat

Community marketing e.g. forums, chatrooms

Video marketing e.g. YouTube



Strategy Positioning Development Lead

generation Conversion

Identify cost-

effective

marketing

activities that

yield high

return

Identify the

right

message,

call to action,

optimise the

activities to

increase

conversion

Identify cost-

effective

marketing

channels to

generate

targeted and

qualified

leads

Build digital

assets with

cost-effective

and updated

technology

Develop

differentiated

positioning

and distill

message for

target

audience



Importance leading to opportunities

Understand the process

Identify the appropriate activities to generate

leads

Plan for creating relevant digital contents in

appropriate digital channels


1B Online consumer power

Consumer power goes stronger than

before as online communities connect

individuals together

Aggregate buying power

Share good things

Also share poor

Negative impact hits hard

Source: New Voice Media



Online communities

Gather consumers of common interest

Example: photo-taking at www.dcfever.com

Activities in online communities

Ask for information, answer questions to gain

prestige status, share experience, jointly

create wish lists, develop offline activities

To the extreme, buy or boycott driven by the

active members



Evaluate the power in the subject area

Visit relevant online communities

Analyse end-user messages

Measure both positive and negative

comments

Conclude the extent of power, strong or weak?


Tutorial

Write the opportunities of digital marketing

Describe the importance of customer insight

in the subject area

Describe how digital marketing activities can

create opportunities to reach customers

Explain the rise of online consumer power in

the subject area

Discuss how to foster positive comments

among consumers


1C Challenges and impacts

Challenges and impacts of digital

marketing

The shift from brands/suppliers to customers

Impact of negative publicity and meeting

customer expectations

Track and monitor the multitude of devices

Competitive environment and noise

Growth of micro-moments and their impact


1C Shift to customers

Brand and product oriented

Catalogs are grouped by product types for all

customers e.g. smart phones, cameras

Customers may need to search different

groups for a collection of products

Household customers: desktop computer, printer

Business customers: desktop computer, printer

Any differences?

Easy to find appropriate products?



Customer oriented

Catalogs are grouped by customer segments

to show relevant products e.g. household

customers, business customers, etc.

Customers get most information from a group

Household: desktop computer should be powerful

for playing heavy-duty games

Business: printer should be capable for high speed

high volume printing



Challenges and impacts

Customer oriented

Customer segments should be clearly defined

e.g. corporations, small-to-medium sized

enterprises (SMEs), professional individuals,

general households, etc.

Web catalogs should be dynamic and

customer oriented

Social media should reach various segments


1C Negative publicity

Negative publicity

Complaint is more powerful than appreciation

People used to complain but less interested to say thanks

People share bad things easier and more effective than positive issues

High impact to the business even one bad thing goes to the public

Business should monitor and respond positively – crisis communications


1C Customer expectations

Customer expectations

Products, features, service level, cost

Expectation management

Business can shape the expectation by

marketing communications

Challenges

Failed to manage customer expectations

would cause serious impacts

Monitoring and shaping are essential


1C Multitude of devices

Multitude of different devices

Customers have quite a large number of

different devices e.g. smart phones, tablets,

laptops, desktops, video walls, etc.

Web Design should handle

Screen size, orientations

Input methods

Network performance


1C Multitude of devices

Tracking and monitoring

Click stream

Hit rate

Usage statistics and trends


Same person uses multiple devices

Difficult to differentiate one from the other

Distorted statistical results


1C Competitive environment

Five forces model of competition

Buyers

Suppliers

Substitutes

New entrants

Industry rivalry

Identify the strength

High or medium or low


1C Noise

Noise

Not only about negative comments

Also includes confusing information

Example: ‘consumer price index is going up’ means the selling price is going upward but

does not mean the sales would go up or down


Identify the strength of the competitive forces

and isolate noise from the study


1C Micro-moments

Micro-moments

A short moment of time developing an idea


1C Micro-moments

Growth of micro-moments

Simulated by marketing communications and

social interactions


Short moments easily developed in

individuals but difficult to materialise by

business

Take the challenges to catch the micro-

moments as opportunities of the business


Tutorial

Write the challenges and impacts of digital

marketing

State the key areas one by one

Evaluate the challenges and impacts to the

subject areas

Suggest ways to overcome the challenges

and reduce impacts


Tutorial

Example of customer expectations

Customer expectations go beyond the features of

most common products

Social networking sites discuss a wish list of features

that a product should have

The challenges become technical stuck point that

damages supplier reputations

The impacts cause poor sales performance

Suggest to join into social networking sites and

emphasise features of high-end products are superb

in order to lower the expectations on general products


Tutorial

Key to success

Explain the relevant concepts

Apply the concepts into the subject areas

Evaluate any positive or negative impacts

Foresee the future changes

Suggest solutions to tackle the problems or

take the opportunities


LO 2

Examine key digital tools, platforms and

channels, comparing and contrasting bricks

and mortar and other physical channels

2A Digital tools, platforms and channels

2B Use of digital tools to meet marketing

requirements


2A Digital tools and platforms

Digital tools, platforms and channels

Use of digital platforms for revenue generations

Role of digital marketing communications in relation

to the 7Ps

Types of digital tools to support and enhance

marketing

Consumer life-cycle stages of digital adoption

Growth of online transactions and e-commerce

Role of automated and non-automated sales and

support activities


2A Digital platforms

Digital platforms and the Internet

Desktop computers and notebooks

Browser-based platforms (access to web sites)

Application-based platforms (more interactive)

Opt-in email platforms (permission marketing)

Feed-based and API data exchange platforms

(push messaging and data cross-over)

Video-marketing platforms (IPTV, interactive TV)


2A Digital platforms

Digital platforms and the Internet

Smart phones and tablets

Android browser-based platforms

iOS browser-based platforms

Mobile application-based platforms

Gaming platforms

Indoor / outdoor kiosk-type apps

Interactive signage


2A Revenue generation

Revenue models

Membership subscriptions e.g. monthly fee

Advertising supported e.g. banner advertising

Transaction fee e.g. commissions

Usage based e.g. pay per click, Adwords


2A Revenue generation

Match digital platforms with revenue

models to generate revenue

Examples

Online shop web sites display advertisements of

newly launched products

Mobile apps push promotion messages to selected

customers


2A DM communications

Digital marketing communications

Including traditional marketing communications

Advertising on mass media

Public relations

Personal selling

Direct marketing

Sponsorship

Also include online tools

Display advertisements

Pay per click advertising

Search engine optimisation

Affiliate marketing


2A Marketing mix

Marketing mix – 7Ps

Product

Price

Promotion

Place

People

Process

Physical evidence


2A Communications and 7Ps

Match communications with 7Ps

Examples

Road show to demonstrate online order

processing (media: road show; mix: process)

Customers carry out online search and compare

features of selected products (media: search

engine, consumer review; mix: product, price)

Digital coupons delivered to customers promoting

less popular products (media: coupons; mix: price,

promotion)


2A Digital tools

Front-end digital tools

Social networking Blog e.g. facebook, Twitter, Weibo, YouTube

Instant messaging e.g. WhatsApp, WeChat, Skype

Discussion forums

Information portals Search engine e.g. Google

Consumer review e.g. Choice

Peer-to-peer business Consumer-to-consumer (C2C) e.g. eBay


2A Digital tools

Back-end digital tools

Search engine optimisation (SEO)

Design web pages for search engine friendly

Select appropriate wordings to enhance keyword

search effectiveness e.g. camera, DC, DSLR

Landing pages

Develop special web pages for particular

promotions e.g. register for private sales

Count the hit rates of the pages to reflect the

effectiveness of the promotions


2A Digital tools

Back-end digital tools

Electronic data interchange (EDI)

Send and receive data among business partners in

standardised formats in order to enhance accuracy

and efficiency

Third-party payment services

e-payment gateway e.g. PayPal, Alipay

Online shop templates

Quick tools for online shop starter e.g. wix.com


2A Digital tools for marketing

Match digital tools to marketing activities

Examples

Use of QR code to lead consumers to a landing

page of special promotion that is not available from

the usual web site

Count the hit rate

Evaluate the promotion

Analyse the needs


2A Digital adoption

Digital adoption

Consumers adopt to use digital tools on digital

platforms and get rid of traditional channels

Consumer life-cycle stages

Innovators

Adopters

Laggards


2A Digital adoption

Implications

At the early stage, only innovators adopt to

digital tools

Majority of adopters move in by stages

At all time, laggards refuse to adopt

Example

Offline-to-online (O2O) has been adopted by

innovators and early adopters. Early majority is

just about to adopt only.


2A Online transactions

Growth of online transactions

Significantly higher than the growth of sales

Supports the growth of e-commerce

Source: HKTDC


2A Online transactions

Implications

Demand on online shopping overtake physical store

sales

Internal resources go to support online shopping

Staff training to support online shopping required

Logistics and e-payment services become essential

Migration to brick and click or pure play is a must not

a choice

+

Brick and mortar Brick and click Pure Play


2A Automated sales

Non-automated sales

Hand-written sales record

Time stamped

Paper record filing system in one sequence

only e.g. sales order number

Record search based on the sequence only

e.g. cannot search by customer name

Drawbacks: data inconsistency, omissions

and errors, time consuming, spacious filing


2A Automated sales

Non-automated sales impact on

Sales ordering processing

Difficult to follow up customer enquiries

Inventory control

Difficult to locate stock inside the warehouse

Delivery and on-site installations

Inefficient use of delivery trucks and personnel

Billing and payment collections

Difficult to reconcile payments and receivables


2A Automated sales

Automated sales

Data verifications at data entry

Connected to subsystems (customers,

inventory, delivery, billing, sales forecast, …) Support sales performance reporting

Support marketing mix analysis

Support marketing strategy development

Increases efficiency and reduces cost


Tutorial

Write the digital tools, platforms and channels

Explain the digit platforms as the base of studying the subject areas

Describe how digital marketing communications support the 7Ps

Explain the use of digital tools to enhance marketing

Quote examples to illustrate the use of concepts in the subject areas


Tutorial

Write the digital tools, platforms and

channels (con’t) Introduce the concept of digital adoption

State the current consumer life-cycle stages

in the subject areas

Explain the growth of online transactions and

the implications

Describe the advantages of automated sales

in comparison to non-automated sales


2B Use of digital tools

Use of digital tools

Deploy relevant hardware and software

Fulfil marketing requirements

Conduct cost benefit analysis


2B Deploy digital tools

Deploy relevant hardware

Consider which types of digital platforms

Being used by consumers

To be used by the chain stores

Value proposition to be created

Deploy relevant software

Consider which types of front-end digital tools being

used by consumers

Consider which types of back-end digital tools to be

used by the chain stores

Explain the expected results of the deployment


2B Marketing requirements

Identify marketing requirements

Examples

Encourage the use of the online shop

Reach more potential customers

Develop brand name reputation

Propose appropriate digital tools to meet

the marketing requirements


2B Cost benefit analysis

Estimate the cost of deployment

Initial setup costs

On-going operating costs

Costs that consumers should incur

Explain the expected benefits

Tangible benefits: increase sales, reduce

costs

Intangible benefits: business reputation,

customer satisfaction


Tutorial

Critically analyse the use of digital tools to meet the marketing requirements of the chain stores

Quote appropriate academic references

Sources of references Web references should be less than 25%

Should cover all major areas

Referencing style In-text reference should be quoted

Harvard referencing style should be used


Tutorial

In-text reference

Should be shown when an idea or concept or information is supported by literature

Format for one or two authors ……(surname, year). ……(surname and surname, year).

Format for three or more authors ……(surname et al, year).

Example ……is essential (Gartner et al, 2015).


Tutorial

Format for textbook

Surname, First initial. (year). Title of the book. Edition.

City published: Publisher.

Format for journal

Surname, Initial. (year). Title of the article, Name of

the journal, volume number (issue number), page

range.

Format for web page

Surname, Initial. (year). Title of the article. [online]

website name. Available at: http://www.domain.com/

page.html [Accessed dd mmm. yyyy].


Q&A

Questions

How many references are required?

How about the word limit?

Can the report be double-size printed?

Should the report be printed in colour?

Documents

BTEC Unit 24 - Alex Lok Open.netaes.alexlokopen.net/unit24/slides1.pdf · BTEC Unit 24 Digital Marketing 17 1A Digital marketing landscape ¾ Issues ¾ Twitter works well in the States