4.

SOSTAC® planning model…

1

2

3

4

5

6

situationobjectivesstrategytactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

Situation analysis

• Mission Statement and Corporate Objectives• Marketing Audit – Macro, Micro and Internal• SWOT and TOWS Analysis, development of CSF’s

Objectives

• SMART• Specific, Measureable, Achievable, Realistic and Time-

bound

Strategy

• Growth and Competitive Advantage• Branding• Segmentation, Targeting and Positioning

Tactics

• The Marketing Mix• Product, Price, Promotion, Place, People, Process

and Physical Evidence

Action

• Implementation of the plan• Allocation of resources and management of

performance

Control

• Measuring performance against objectives and desired outcomes

• Amending approach based on variance Smith, 1990

…developing intelligent strategic objectives

Objective Substantiation Strategies to achieve goals

KPI’s

Link to stage of consumer journey and SMART

Link to audit findings and TOWS options

Link to STP, OVP, growth and positioning

What will you be measuring?

Retention – increase purchase from current client base by 30%

Increase in disposable incomeIncreased desire for product

Position as luxury against key competitorsDifferentiation through featuresOVP – exclusivity

% number of clients returning after first shop

TOWS Analysis

Strengths Weaknesses

Opportunities“Maxi-Maxi” Strategies

Strengths used to maximise opportunities

“Mini-Maxi” Strategies

Minimise weaknesses by taking advantage of

opportunities

Threats“Maxi-Mini” Strategies

Strengths used to minimise threats

“Mini - Mini” Strategies

Minimise weaknesses and avoid threats

Weihrich, 1982

The TOWS matrix (sample)...

Setting SMART objectives

Unique visitors, traffic, bounce rate, revenue, search percentage

leads, conversions from leads, page views, time, value per visit

sales, sales from leads, sales value, sales volume, average order value active customers, brand mentions, sentiment, shares, virality

types of objectives…

Digital Channel contribution objective: achieve 10% online revenue, (or profit) contribution within two years.

Acquisition Objective: increase by 20% within one year the number of sales arising from a certain target market.

Conversion Objective: Increase the percentage of online service enquires through clicking the display ad from 50% to 65%

Growth Objective: Increase new prospects from enquires initiated from response to email marketing campaign by 500 per year.

There are also cost objective, penetration objective and improve customer services.

Strategic formulation

Mostly a Channel Marketing Strategy;

Tactics elaborated via Customer touchpoints.

Not just another ‘channel to market’;

Generation, review and selection of strategies to achieve strategic objective.

Your digital marketing strategy should

Based on digital objectives and delivered through online channels.

Address the ‘needs of you customer audience by supporting customer journey.

Define an unique value proposition to your brand.

Digital strategy should be in line with overall marketing strategy such as market and product development, business and revenue models, targeting and positioning, multichannel distribution, etc…

Define specific channels you will use to achieve the objectives.

…a further objective-linked strategic consideration

acquisition

conversion

retention

…how do we gain new customers?

…OVP and integration with other channels

…build relationships, develop advocates and engage

Brand influence

targeting...

Three traditional key approaches: undifferentiated, differentiated, concentrated.

Online Tactical Segmentation: targeting based on customer journey behaviour (search, site and social).

Targeting based on attention.

Levels of influence not only volume of sales.

positioning…

products can be positioned in the market by focusing on specific factors such as…

features, benefits or advantages

solutions presented

specific usage (occasions)

positioned against other products

class disassociation

strategy… OVP

closely tied to the brand position

the reasons why the customer will click, register, buy and share

the intrinsic benefits from the site, content, service and functionality

RACE model

Reach… building awareness offsite

Act… engaging audiences with site content and other web presence

Convert… achieve marketing goals… call to action

Engage… build relationships to retain customers

Chaffey and Bosomworth, 2012

Ansoff’s Growth Matrix

Market Penetration Product Development

Market Development Diversification

Existing

Existing

New

New

Product

Market RISK

Porter’s Generic Strategies

Differentiation Overall Cost Leadership

Focus

Uniqueness perceived by customer Low cost position

Industry-wide

Segment only

Strategic Target

Strategic Advantage

…the marketing mix

product

price

people

process

Physical evidence

promotion

place

…partners?

McCarthy, 1960

Booms & Bitner, 1981

Chaffey, 2006

…an alternative?

…the 4C’s

consumer wants or needs

Robert Lauterborn (1990) argued that we needed to have a new formula…

cost(s)

convenience

communication(s)

…where does a website fit in the P’s or C’s?

…what is an app?

just remember...

…the directions and focus given in the strategy

the mix is only a framework to aid in decision-making…

think about what you want to achieve in your objectives…

but be flexible and agile

…and, of course, your audience

hierarchy in the mix?

different tactics will have a different significance

place and physical evidence

product and price

promotion and process

people

…and speed at which they can be adapted

digital promotion…

PPC SEO

mobile social media

AR

websites

contentCRO

microsites

email

landing pages

CGM

banners

skyscrapers

interstitials

pop-ups

inbound links

viral

affiliatesstory-telling

A/B testing

NFC

social video

personalisation

omni-channel

social media

SMS

DRTV

what to consider...

Search

Social

Site

…Shove?

…the more traditional ‘push’ based communications delivered via digital media?

…the key buzzword is… optimise

digital process…

…using an digital platform needs to be intuitive, efficient and quick

…the focus is heavily on the user, hence the development of personas

the key concept here is user experience or UX

…digital place

e-commerce

11.5% of all UK retail sales

eMarketer, 2013 (estimate)

…excluding travel and events

m-commerce accounts for 15% of this

…at £6.61 billion for 2013

…digital place

the cloud…

…changing the software market

…office 365 and Google docs

…allows storage of, and access to, digital media

…advanced collaboration and shared ownership

digital physical evidence…

…down/load speed

…language and design

…reviews, endorsements?

…packaging and delivery?

digital product...

…can it be turned into a file or software?

…then we have a digital product!

…changing from tangible to digital content

yes

…music, books, films, TV, games, newspapers, apps, maps, communities

then we need to consider content delivery systems

…bespoke design

digital product...

3D printing…

digital price…Paywalls… premium ‘content’ or ‘package’

“freemium”

…comparison sites - aggregators

early bird

online only discounts… incentivising behaviour and traffic

digital, mobile wallet

…showrooming

L2, 2013, research identified that 82% of smartphone users engaged in this form of price-checking

digital people…

…callback

…realtime chat

…avatars

…after-sales service

…and social media

…automated response

…avatars

…tactics for strategy

References and reading

Armstrong, G & Kotler, P. (2008) Marketing- An Introduction. 9th ed Pearson Education: LondonDibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. (2012) Marketing: Concepts and Strategies. 5th European ed. Houghton Mifflin: AbingdonRyan, D. and Jones, C. (2009) Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation London: Kogan PageWilson, M.S., Gilligan, C., (2005), Strategic Marketing Management, CIM/Elsevier http://www.smartinsights.com/digital-marketing-strategy/sostac-model/http://www.smartinsights.com/digital-marketing-strategy/race-a-practical-framework-to-improve-your-digital-marketing/http://www.enterprisebucks.co.uk/wp-content/uploads/2014/09/digital-marketing-plan-template-smart-insights1.pdf

Chaffey, D., Mayer, R., Johnston, K., Ellis-Chadwick, F. (2006), Internet Marketing: Strategy, Implementation and Practice (3rd Edition), Prentice HallSmith, P.R. and Chaffey, D. (2005). E-marketing Excellence. (2nd Edition). Elsevier Butterworth HeinemannRyan, D. and Jones, C. (2009) Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation London: Kogan Pagehttp://www.smartinsights.com/

http://www.e-consultancy.com/

http://www.google.com/analytics/features/

http://www.experian.co.uk/marketing-services/mosaic-digital-

insights.html

http://blog.kissmetrics.com/

http://www.forrester.com

/http://www.ons.gov.uk/ons/

References and reading