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TRANSCRIPT
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Part 1
Digital marketing fundamentals
Chapter 1Introducing digital marketing
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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.
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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?
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Online opportunities
Table 1.1 Timeline of online services indicating innovation in business model or marketing communications approach
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Online opportunities (Continued)
Table 1.1 Timeline of online services indicating innovation in business model or marketing communications approach (Continued)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.1 Google timelineSource: Google Corporate Timeline: www.google.com/about/corporate/company/timeline/
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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?
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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 achievingprofitable acquisition and retention of customers (within a multi-channel buying processand 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
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Which platforms are involved?
• What ways can you access the
Web or Internet through a browser?A. Desktop, laptop and notebook platforms
1. Desktop browser-based platform e.g. IE, Chrome, Safari
2. Desktop apps e.g. Apple App Store
3. Email platforms
4. Feed-based and API data Exchange platforms e.g. RSS feeds, Twitter,
5. Video-marketing platforms e.g. Online TV channels
B. Mobile phone and tablet platforms
1. Mobile operating system and browser
2. Mobile-based apps e.g. Apple iOS, Google Android
C. Other hardware platforms
1. Gaming platforms e.g. PlayStation, Nintendo
2. Indoor and outdoor kiosk-type apps e.g. interactive kiosks, augmented
reality
3. Interactive signage e.g. Touchscreen, Bluetooth, QR codes
4. Wearables e.g. Apple Watch, Google Glass
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.4 YouTube video explaining the Tesco Homeplus Virtual Subway Store presence in South KoreaSource: www.youtube.com/watch?v=fGaVFRzTTP4
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.2 The intersection of the three key online media types
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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?
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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?
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Benefits of digital marketing – The 5Ss
Table 1.2 The 5Ss of Internet marketingSource: Chaffey and Smith (2012)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.6 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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?
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.7 The distinction between buy-side and sell-side e-commerce
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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
– P&G
• Portal or media site
– Yahoo! Silicon.com
• Social network or media site
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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.
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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).
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Applying the 7 Ss
1. Strategy
2. Structure
3. Systems
4. Staff
5. Style
6. Skills
7. Superordinate goals
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.9 A generic digital marketing strategy development process
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Introduction to Digital Marketing
Communications
• Pay-per-click
• Search engine optimisation
• Affiliate marketing
• E-mail marketing
• Landing page
• Rich media
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Table 1.4 Key marketing communications concepts
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Table 1.4 Key marketing communications concepts (Continued)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.10 RACE: Reach–Act (Interact)–Convert–EngageSource: Smart Insights (2010)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.11 Six categories of e-communications tools or media channels Source: Chaffey and Smith (2012)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Social Media Marketing
• Monitoring and facilitating customer-customer
interaction and participation throughout the web
to encourage positive engagement with a
company and its brands
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.11 Social Media Marketing Radar (Chaffey, SmartInsights.com, 2011)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Benefits of digital media
• 6 Is of the e-marketing mix:
1. Interactivity (Figure 1.13)
2. Intelligence
3. Individualization (Figure 1.14)
4. Integration (Figures 1.15 &1.16)
5. Industry restructuring
6. Independence of location
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.13 Summary of communication models for (a) traditional media, (b) new media
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.14 Summary of degree of individualisation for: (a) traditional media
(same message); (b) new media (unique messages and more information exchange between customers)
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.15 Channels requiring integration as part of integrated e-marketing strategy
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Figure 1.16 The role of mixed-mode buying in Internet marketing
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
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.
• Content marketing
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Content marketing activities
• Define content engagement value
• Create content media/assets
• Content syndication (influencer outreach)
• Content participation
• Content access platform.
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Chaffey and Ellis-Chadwick, Digital Marketing: Strategy, Implementation and Practice, 6e © Pearson Education Limited 2016
Key challenges of digital
communications
• Complexity
• Responding to competitors
• Responding to changes in technology
• Cost
• Attention