Part 2 Digital marketing strategy development - deu.edu.trkisi.deu.edu.tr/sumeyra.kurt/MRK 4233/PDF... · Part 2 Digital marketing strategy development ... Positioning and differentiation

10/21/2016

1

Slide 4.1

Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013

Part 2

Digital marketing strategy

development

Chapter 4

Digital marketing strategy

Slide 4.2


Learning objectives

• What approaches can be used to create digital

marketing strategies?

• How does digital marketing strategy relate to

other strategy development?

• What are the key strategic options for digital

marketing?

10/21/2016

2

Slide 4.3


Questions for marketers

• Relate digital marketing strategy to marketing

and business strategy

• Identify opportunities and threats arising from

digital technology platforms

• Evaluate alternative strategic approaches for

using digital platforms

Slide 4.4


Q. What are organisational problems if no

E-marketing strategy?

• Underestimated demand for online services

• Market share loss

• Resource duplication

• Insufficient resource

• Insufficient customer data

• Efficiencies available through online marketing

• Opportunities for applying online marketing tols

• Changes required to internal IT systems

• Inadequate tracking

• Senior management support limited

10/21/2016

3

Slide 4.5


Michael Porter on the Internet

• ‘The key question is not whether to deploy

Internet technology – companies have no choice

if they want to stay competitive – but how to

deploy it.’

Porter, M. (2001) Strategy and the Internet,

Harvard Business Review, March 2001, 62–78.

Slide 4.6


What is a digital marketing strategy?

• What is strategy?

– “Defines how we will meet our objectives”

– “Sets allocation of resources to meet goals”

– “Selects preferred strategic options to

compete within a market”

– “Provides a long-term plan for the development of

the organisation”

10/21/2016

4

Slide 4.7


Digital marketing strategy essentials• Digital marketing strategy is a channel strategy

• Objectives for online contribution %- sales, service, profitability should drive our strategy

• Digital marketing strategy defines how we should:1. Communicate benefits of using this channel

2. Prioritise audiences targeted through channel

3. Prioritise products available through channel

4. Hit our channel leads & sales targets

– Acquisition, Conversion, Retention

• Channel strategies thrives on differentials

• BUT, need to manage channel integration

Slide 4.8


Figure 4.1 Internal and external influences on digital marketing strategy

10/21/2016

5

Slide 4.9


Table 4.1 Summary of typical focus for main types of e-commerce-related strategic initiatives

Slide 4.10


Figure 4.2 HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)

10/21/2016

6

Slide 4.11


Challenges of digital marketing

• Gaining buy-in and budget

• Conflicts of ownership ad tensions

• Coordination with different channels

• Managing and integrating customer information

• Achieving consistent reporting

• Structuring the specialist digital team

• ‘time to market’

• Insourcing vs. outsourcing

• Staff recruitment and retention

Slide 4.12


Figure 4.3 Hierarchy of organisation plans including e-marketing plans

10/21/2016

7

Slide 4.13


Figure 4.4 The SOSTAC® planning framework applied to digital Digital marketing strategy developmentSource: Chaffey and Smith (2008)

Slide 4.14


Figure 4.6 A generic digital channel-specific SWOT analysis showing typical

opportunities and threats presented by digital media

10/21/2016

8

Slide 4.15


Figure 4.8 An example of a digital channel specific SWOT for an established multichannel brand showing how the elements of SWOT can be related to strategy formulation

Slide 4.16


Strategy Formulation

• Strategy formulation involves the identification of

alternative strategies, a review of the merits of

each of these options and then selecting the

strategy that has the best fit with a company’s

trading environment, its internal resources and

capabilities.

– typically involves making adjustments to marketing

strategy to take advantage of the benefits of online

channels rather than wholescale changes

10/21/2016

9

Slide 4.17


Strategy Formulation

Decision 1: Market and product development strategies

Decision 2: Business and revenue models strategies

Decision 3: Target marketing strategy

Decision 4: Positioning and differentiation strategy

(including the marketing mix)

Decision 5: Customer engagement and social media

strategy

Decision 6: Multichannel distribution strategy

Decision 7: Multichannel communications strategy

Decision 8: Online communications mix and budget

Decision 9: Organizational capabilities (7S framework) and

governance

Slide 4.18


Figure 4.12 Using the Internet to support different organisational growth strategies

Decision 1: Market and Product Development

Strategies

10/21/2016

10

Slide 4.19


Decision 2: Business and Revenue Models Strategies

• Business model: a summary of how a company

will generate revenue, identifying its product

offering, value-added services, revenue sources

and target customers.

• Revenue model: describes methods of

generating income for an organization.

Slide 4.20


Figure 4.15 Stages in target marketing strategy development

Decision 3: Target Marketing Strategy

10/21/2016

11

Slide 4.21


Common online targeting options

– Brand loyalists – convert online

– Not brand loyal – encourage trial

– Most profitable – deepen relationships

– Larger companies (B2B) – extranet

– Smaller companies(B2B) – can reach these

companies more cost effectively

– Key members of the buying unit (B2B) -

detailed information on the web site about the

product, services etc.

– Difficult to reach using other media

Slide 4.22


Figure 4.16 Dell Singapore site segmentationSource: http://www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. © 2012Dell Inc. All Rights Reserved.

10/21/2016

12

Slide 4.23


Figure 4.17 Customer lifecycle segmentation

Slide 4.24


Figure 4.18 Euroffice e-mail (www.euroffice.co.uk)Source: Adapted from the company website press releases and Revolution (2005a)

10/21/2016

13

Slide 4.25


Figure 4.19 Alternative positionings for online services

Decision 4: Positioning and Differentiation Strategy

Slide 4.26


Figure 4.20 WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates its

proposition

10/21/2016

14

Slide 4.27


Decision 5: Customer Engagement and Social Media

Strategy

• Customer engagement strategy

• Social media strategy

1. Who are our target audience?

2. What are the content preferences of our audiences?

3. Strategic business goals for social network presences?

4. Which content types should have priority?

5. How to differentiate the social channel from other communications

channels?

6. How to integrate social channels?

7. Content frequency and editorial calendar?

8. Sourcing content?

9. How to manage publication and interaction?

10. Software for managing the publishing process?

11. Tracking the business impact of social network activity?

12. How to optimize the social presence?

Slide 4.28


Figure 4.21 Strategic options for a company in relation to the importance of the

Internet as a channel

Decision 6: Multichannel distribution strategy

10/21/2016

15

Slide 4.29


Figure 4.23 Influences on customers of multichannel decision makingSource: adapted from Dholakia et al. (2010)

Decision 7: Multichannel Communications Strategy

Slide 4.30


Figure 4.24 Channel coverage map showing the company’s preferred strategy for communications with different customer segments with different value

10/21/2016

16

Slide 4.31


Decision 8: Online Communications Mix and Budget

• Performance drivers:

1. Attraction

– size of visitor base, visitor acquisition cost and visitor

advertising revenue

2. Conversion

– Customer base, customer acquisiton costs, customer

rate, number of transactions per customer, revenue per

transaction, revenue per customer…

3. Retention

– Similar measures to conversion customers (cost of

repeat customer, revenue per repeat customer, repeat

customer churn rate, repeat customer conversion rate)

Slide 4.32


Decision 9: Organizational Capabilities (7 S

Framework) and Governance

• Main challenges:

– Strategy: limited capabilities to integrate into Internet

strategy

– Structure: structural and process issues

– Skills and staff: difficulties in finding specialist staff or

agencies.

10/21/2016

17

Slide 4.33


Figure 4.26 Example of risk–reward analysis

Documents

Part 2 Digital marketing strategy development - deu.edu.trkisi.deu.edu.tr/sumeyra.kurt/MRK 4233/PDF... · Part 2 Digital marketing strategy development ... Positioning and differentiation