CHAPTER 1
Digital Marketing Fundamentals –
Introducing Digital Marketing
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: www.google.com/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
marketing communications approach
Table 1.1
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Slide 1.6
Online opportunities (Continued)
Timeline of online services indicating innovation in business model or
marketing communications approach (Continued)
Table 1.1
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 (http://www.cim.co.uk/) 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
presence in South Korea
Figure 1.4
Source: www.youtube.com/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,
consumers and governmental organisations
Figure 1.6
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
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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! Silicon.com
• 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
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Slide 1.23
Table 1.4
Key marketing communications concepts
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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)
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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,
(b) new media
Figure 1.13
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
(same message); (b) new media (unique messages and more information
exchange between customers)
Figure 1.14
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 (www.travelrepublic.co.uk)
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
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