Chapter 1Introducing digital marketing

NUR AQILAH BINTI ZAINUDINBM2403B

Learning objectives

• Evaluate the relevance of digital platforms and digital media to marketing

• Evaluate the advantages and challenges of digital media

• Identify the key differences between customer communications for digital marketing and traditional marketing.

INTRODUCTION

• Positioning = customers perception of the product and brand offering relative to those of competitors

• Target marketing strategy = evaluation and selection of appropriate customer segments and the development of appropriate offers

• Online value proposition = statement of the benefit of online service that reinforces that core proposition and differ from organisation offline offering

• Value proposition = benefits or value a brand offers to customer in its product and service

Key Features of Digital Marketing Strategy

Be aligned with business strategy

Use clear objectives for business and brand development

Be consistent with the types of customer

Support customer journey

Manage online customer lifecycle

APPLICATIONS OF DIGITAL MARKETING

• Advertising medium• Direct-response medium• Platform for sales transaction• Lead generation method• Distribution channel• Customer service merchanism• Relationship building medium

North West Supplies Ltd site (www.northwestsupplies.co.uk)

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?

Benefits of digital marketing – The 5Ss

Summary and examples of transaction alternatives between businesses, consumers and governmental organisations

E-business and e-commerce

E-commerce=====

Both financial and informational

electronically mediated transaction between organization and 3rd

parties

E-business====

Electronically mediated information exchanges,

both within an organization and external stakeholder support the

range of business process

The distinction between buy-side and sell-side e-commerce

Different forms of online presence

Portal or media siteYahoo! Silicon.com

Transactional e-commerce site:

Examples – Amazon, Dell

Brand Building siteTango, Guinness

Social network or media site

Note that these types overlap

Services-oriented/relationship building

Accenture, British Gas

Challenges in developing and managing digital marketing strategy

Unclear responsibilities No specific objectives Insufficient budget Budget is wasted New online value proposition for customer Result from digital marketing are not measured

Applying the 7Ss

Structure

Strategy

Systems

Superordinate goals

Staff

Style

Skills

A generic digital marketing strategy development process

Key Marketing Communication Concepts

Race : Reach-Act (interact)-convert-engage

The key types of digital media channels

Search engine marketing

Online partnership

Opt-in e-mail marketing

Online PR

Display advertising

Social media marketing

Six categories of e-communications tools or media channel

Different types of social media marketing tools

Social networks Social publishing and news Social commenting in blogs Social niche communities Social customer service Social knowledge Social bookmarking Social streaming Social search Social commerce

Evaluation of web technologies

Benefits of digital media

1. Interactivity

2. Intelligence

3. Individualization

4. Integration

5. Industry restructuring

6. Independence of location

Key challenges of digital communication

Complexity Responding to competitors Responding to changes in

technology Cost Attention

Key communications concept for digital marketing

Customer engagement Permission marketing Content marketing

SUMMARY

• Digital marketing refers to the use of digital technology platforms, combined with traditional media, to achieve marketing objectives.

• A customer centric approach to digital marketing considers the needs of a range of customers using techniques such as persona and customer scenarios.

• Electronic commerce refers to both electronically mediated financial and informational transaction

• Interaction with customer, suppliers and distributors occur across the internet.