Slide 1.
Part 1
Digital marketing fundamentals
Chapter 1
Introducing digital marketing
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.2
Learning objectives
• Explain the relevance of different types of digital
platforms and digital media to marketing
• Evaluate the advantages and challenges of
digital media
• Identify the key differences between customer
communications digital marketing and traditional
marketing.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.3
Questions for marketers
• What are the options for digital marketing to
grow our business?
• What are the key benefits of digital marketing?
• What differences do digital media introduce
compared to existing marketing communications
models?
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.4
Figure 1.1 Google timeline
Source: Google Corporate Timeline: [Link]/about/corporate/company/timeline/
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.5
Online opportunities
Timeline of online services indicating innovation in business model or
Table 1.1
marketing communications approach
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.6
Online opportunities (Continued)
Timeline of online services indicating innovation in business model or
Table 1.1
marketing communications approach (Continued)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.7
What is it?
Introducing the scope of digital marketing
• ‘Achieving marketing objectives through
applying digital technologies’
– How?
• Marketing is the management process
responsible for identifying, anticipating and
satisfying customer requirements profitably.
Chartered Institute of Marketing
– How?
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.8
A more in-depth definition
• Customer-centric digital marketing involves:
• Applying…
• Digital technologies which form online channels…
(Web, e-mail, databases, mobile, iPTV)
• to…
• Contribute to marketing activities aimed at achieving
profitable acquisition and retention of customers
(within a multi-channel buying process
and customer life cycle)
• through…
• Improving customer knowledge (of their profiles,
behaviour, value and loyalty drivers), then delivering
integrated targeted communications and online services
that match their individual needs
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.9
Which platforms are involved?
• What ways can you access the
Web or Internet through a browser?
– Dual-screening is important
– For suggestions, see pp. 12–13
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.10
Figure 1.2 The intersection of the three key online media types
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.11
How do digital technologies
contribute to marketing?
• The definition of marketing by the Chartered Institute
of Marketing ([Link] is:
• Marketing is the management process responsible
for identifying, anticipating and satisfying customer
requirements profitability.
• Give examples of how the Internet (web and e-mail)
achieves these?
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.12
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?
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.13
YouTube video explaining the Tesco Homeplus Virtual Subway Store
Figure 1.4
presence in South Korea
Source: [Link]/watch?v=fGaVFRzTTP4
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.14
Benefits of digital marketing – The 5Ss
Table 1.2 The 5Ss of Internet marketing
Source: Chaffey and Smith (2012)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.15
Applications of digital marketing
• An advertising medium
• A direct-response medium
• A platform for sales transactions
• A lead-generation method
• A distribution channel
• A customer service mechanism
• A relationship-building medium.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.16
Summary and examples of transaction alternatives between businesses,
Figure 1.6
consumers and governmental organisations
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.17
E-business and e-commerce
• You are attending an interview for a job in an
E-commerce department. You are asked to:
…
• Define e-commerce
• Explain the relationship between
e-commerce and e-business?
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.18
Figure 1.7 The distinction between buy-side and sell-side e-commerce
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.19
What are the challenges
of managing strategy?
• Unclear responsibilities for digital
• Setting objectives
• Lack of budget
• Budget wasted through experiments/duplication
• Developing new propositions and campaigns to
compete
• Lack of measurement
– i.e. No plan.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.20
Why is a digital strategy needed?
• To set clear goals for digital channels
• To align with business strategy (avoid ad-hoc
approaches)
• Create a specific online value proposition (OVP)
• Specify communications tools to drive visitors
• Integrate digital and traditional channels
• Manage customer life cycle (e.g. through email
marketing).
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.21
Different overlapping forms of web presence
Give an example of each
• Transactional e-commerce site:
• Examples – Amazon, Dell
• Services-oriented/relationship building
– Accenture, British Gas
• Brand Building site
– Tango, Guinness
• Portal or media site
– Yahoo! [Link]
• Social network or media site
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.22
Figure 1.9 A generic digital marketing strategy development process
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.23
Table 1.4 Key marketing communications concepts
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.24
Table 1.4 Key marketing communications concepts (Continued)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.25
Figure 1.10 RACE: Reach–Act (Interact)–Convert–Engage
Source: Smart Insights (2010)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.26
Figure 1.11 Six categories of e-communications tools or media channels
Source: Chaffey and Smith (2012)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.27
Differences of digital media
• Split into groups
• For each of 1.13 to 1.16 students summarise
differences between traditional media and digital
media and how they can be used to advantage
by companies.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.28
Figure 1.12 Evolution of web technologies
Source: Adapted from Spivack (2007)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.29
Summary of communication models for (a) traditional media,
Figure 1.13
(b) new media
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.30
Summary of degree of individualisation for: (a) traditional media
Figure 1.14
(same message); (b) new media (unique messages and more information
exchange between customers)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.31
Figure 1.15 Channels requiring integration as part of integrated e-marketing
strategy
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.32
Figure 1.16 The role of mixed-mode buying in Internet marketing
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.33
Figure 1.17 Travel Republic ([Link])
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.34
Fundamental digital
marketing concepts
• Customer engagement:
– ‘Repeated interactions that strengthen the emotional,
psychological or physical investment a customer has
in a brand.’ cScape
– ‘The level of involvement, interaction, intimacy and
influence an individual has with a brand over time.’
Forrester
• Permission marketing:
– A value exchange in return for communications and
profiling, e.g. E-mail opt-in, Like of brand on
Facebook.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.35
Content marketing activities
• Define content engagement value
• Create content media/assets
• Content syndication (influencer outreach)
• Content participation
• Content access platform.
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Slide 1.36
Content marketing approaches
Figure 1.18 The Content Marketing Hub
Source: Smart Insights (2015a)
Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
