Digital

Marketing
Management
DMM - Session 4
 Today’s agenda
• Understanding the impact of digital disruptors
• Digital marketing strategy as a channel marketing strategy
• The scope of digital marketing strategy
• Importance of integrated digital marketing strategy and digital
• transformation plan
• How to structure a digital marketing strategy
 What is Digital Marketing Strategy
• Digital marketing strategy should offer consistent guidance for an
organization's online marketing efforts and integration across channels.
• The objective is to align digital initiatives with other marketing activities
to advance overall business goals.
• Digital marketing aims parallel those of traditional strategies, focusing on
customer acquisition, retention, and communication objectives.
• Effective digital strategy development involves utilizing digital media,
data, and technology alongside traditional channels to promote audience
engagement.
• The goal is to support marketing objectives by effectively engaging
target audiences through integrated digital and traditional channels.
 Digital marketing strategy - definition

• Definition of the capabilities and strategic initiatives to support marketing

and business objectives an organisation should deploy to harness digital
media, data and marketing technology to increase multichannel
engagement with their audiences using digital devices and platforms.
 Digital marketing strategy - explained
• Definition: A digital marketing strategy outlines how a company will use
digital tools and technology to achieve its marketing and business goals.
• Capabilities: It defines the skills and resources needed to effectively utilize
digital media, data, and marketing technology.
• Strategic Initiatives: The plan includes specific actions and projects aimed at
reaching and engaging with the target audience.
• Multichannel Engagement: Focuses on connecting with the audience across
various digital channels, such as websites, social media, and email.
• Digital Devices and Platforms: Targets people who use digital devices like
smartphones and platforms such as websites and social media for
interactions with the company's products or services.
 Impact of digital disruptors
• Digital disruption - Innovations in digital media, data and
marketing technology that enable a change to a new basis
for competition in a market or across markets.
• It facilitates the entry of new competitors into the market and allows agile
businesses to adopt new business and revenue models.
• Digital strategy is significantly influenced by these disruptions, shaping how
companies engage with their audience and conduct business.
• Organizations must adapt to these changes to remain competitive and capitalize
on emerging opportunities.
• The evolution of digital media, data utilization, and technology continues to drive
transformation across industries, necessitating constant adaptation and
innovation.
 Digital disruptors
Disruptor Description
Amazon Online retail giant offering vast selection and fast delivery.
Airbnb Platform for unique accommodations, disrupting hospitality.
TripAdvisor Travel planning platform with user-generated reviews.
Uber Ride-hailing service providing convenient transportation.
Deliveroo Food delivery platform offering diverse restaurant options.
Netflix Subscription-based streaming service revolutionizing entertainment.
Spotify Music streaming platform offering access to vast song library.
Tesla Electric vehicle manufacturer promoting sustainable transportation.
TikTok Short-form video platform reshaping social media engagement
 Digital disruptors
Disruptor Description
Zoom Video conferencing platform facilitating remote communication.
Peloton Fitness company offering interactive exercise equipment and classes.
DoorDash Food delivery platform connecting users with local restaurants.
Robinhood Commission-free trading app democratizing access to financial markets.
Zillow Real estate marketplace providing data and insights for homebuyers and sellers.
Online payment processing platform enabling businesses to accept payments
Stripe
online.
Slack Collaboration software for teams, enhancing remote work communication.
Coursera Online learning platform offering courses from top universities and institutions.
Canva Graphic design platform empowering users to create professional designs easily.
WeWork Shared workspace provider offering flexible office solutions for businesses.
AI-powered language model enabling various language-related tasks and
ChatGPT
applications.
 What is Channel Marketing Strategy

• Channel marketing strategy defines how a

company should set specific objectives for digital
channels and how they integrate with traditional
channels, including web, mobile and social media,
and vary its proposition and communications for
this channel.
 Digital strategy as a channel strategy

• Digital marketing strategy is like a roadmap for companies to use digital channels
effectively.
• It helps companies set specific goals for each digital channel and find ways to make their
brand stand out.
• The strategy involves integrating digital channels with other marketing efforts for a
cohesive approach.
• It's not just about communication; it also involves adapting products, prices, and customer
service for digital platforms.
• The aim is to leverage digital channels to gain a competitive edge and engage with the
right audience effectively.
 Strategy & touchpoints

• The strategy determines the strategic touchpoints significance of

digital channels relative to other communications channels used to
communicate directly with customers at different customer.
• Customer touchpoints are;
• Communications channels with which companies interact directly with prospects
and customers.
• Traditional touchpoints include face to face (in-store or with sales
representatives), phone and mail.
• Digital touchpoints include web services, email and, potentially, mobile phones.
 Strategy & touchpoints…
• Shopping behaviour is evolving due to digital technologies and social media.
• Consumer decision-making has become more complex, with the path to
purchase influenced by traditional and digital cues.
• Businesses must acknowledge the importance of digital channels in
reaching customers.
• Retailers are expanding their reach and touchpoints through digital
initiatives.
• For example, Macy’s Store in US introduced a smartphone app to check in-
store availability, demonstrating the impact of digital investments on offline
purchases.
• They claim that every dollar it invests in search marketing drives $6 towards a store
purchase
What influences
DM Strategy
 Best use of digital channels
1. Eliminate silos and create seamless experiences for consumers all the way
along the path-to-purchase.
a) Look for ways to bring together the on- and offline worlds and avoid isolated marketing
campaigns, which do not integrate.
b) Any friction along the journey a shopper is likely to defect to another supplier (e.g. if a
retailer sells products at different prices online to in-store).
2. Increase opportunities to digitally interact by understanding more about
their paths-to-purchase (e.g. provide incentives along the way through digital
advertising and mobile promotions).
3. Analyse and measure consumer behaviour at all touchpoints in order to
develop deep and insightful understanding of what is driving shoppers’ choices
and purchase decisions.
Digital access before market visit
Digital access during market visit
 Marketing in a digital world
• Not only retailers that make use of multiple channels to engage their
customers – airlines (British Airways ), rail companies (Virgin Trains ),
pubs and restaurants (JD Wetherspoons ) use virtual channels (apps,
websites, email marketing) to integrate the physical customer experience
with the digital to deliver services and communicate with customers.
• Focus of digital marketing strategy is decisions about how to use digital
channels to support existing marketing strategies,
• Use it with other channels as part of a multichannel marketing strategy.
• How traditional channels integrate with digital and support each other
• Keith Weed, head of communications at Unilever , says ‘we are no
longer doing digital marketing, but marketing in a digital world’
 Multichannel marketing strategy
• Defines how different
marketing channels should
integrate and support each
other in terms of their
proposition development and
communications based on their
relative merits for the customer
and the company.
 The scope of DM strategy
• Enhancing website experiences that are effective for mobile and desktop
users will be a central part of the strategy, BUT
• use marketing automation tools for customer relationship development; these may
include email, mobile and web-based personalisation
• develop the overall customer experience across multiple channels
• maximise the results from partnering and advertising with online intermediaries
such as publishers, and influencers such as bloggers
• harness social media marketing, both user-generated content and paid ads within
the main social networks such as Facebook, Instagram, LinkedIn and Twitter
• redesigning business processes to integrate with partners, e.g., suppliers and
distributors.
• As the Internet and digitally enhanced trading environments are more
widely adopted, the scope for redesigning business processes extends
even further.
 Scope…
Type of Digital Marketing
Strategy Initiative Examples
HSBC Bank PLC introduced new financial calculators to drive sales of loans,
New Customer Proposition
credit cards, and savings accounts.

HubSpot utilized content and inbound marketing, search engine optimization

Customer Acquisition
(SEO), pay-per-click (PPC) advertising, co-marketing, and influencer marketing.

Customer Conversion and JD Wetherspoons introduced the Order & Pay app, allowing customers to find a
Experience table, order, and pay via their phone, enhancing their brand experience.
Customer Development Volkswagen enhanced customer experience through digital ecosystems like
and Growth the MyVolkswagen app, Car-Net, and Volkswagen Connect.
Social Media and Content Airbnb leveraged Instagram and celebrity endorsements to influence customer
Marketing acquisition, conversion, and retention.
Enhanced Marketing Implementation of CRM, content management systems, performance
Capabilities improvement tools, and customer feedback facilities.
Resourcing and
Changes in marketing management processes, skills development, and team
Governance Strategies
 Importance of IMC
• Digital marketing is increasingly pervasive across all aspects of organizations
• Integration involves various considerations:
• Gaining buy-in and budget aligned with audience media consumption and value generated
• Addressing conflicts of ownership and tensions among different teams
• Coordinating with various channels and marketing teams
• Managing and integrating customer information collected online
• Ensuring consistent reporting, analysis, and follow-up actions
• Structuring the digital team and integrating it into the organization
• Managing "time to market" for implementing new functionality
• Deciding between insourcing and outsourcing online marketing tactics
• Addressing staff recruitment requirements
Where DM stands
 Digital transformation
• A staged programme of business improvements to people, processes and
tools used for integrated digital marketing to maximise the potential
contribution of digital technology and media to business growth.
• Align stakeholders across the organization on long-term digital marketing strategy and
investment levels.
• Scope includes resource allocation for digital media, data management, and marketing
technology.
• Address changes to processes, structures, and skills required for implementation.
• Integrate communications across traditional and digital channels.
• Establish KPIs, dashboards, and structured experiments for insight, measurement, and
improvement.
• Develop a roadmap and change program for implementation.
 DM Planning failures and solutions
Potential failure or problem Potential solution

Underestimated customer demand for online Research demand, set objectives, allocate sufficient resources
services

Intense competition from existing and new Analyse the market, especially the intensity of rivalry, anticipate competitive responses,
market entrants who may spark digital plan a clear market entry strategy or potential changes to business and revenue models
disruption in sector through new business or
revenue models
Duplication of resources Improve internal communications to avoid different parts of the marketing organisation
purchasing different tools or different agencies for performing similar online marketing
tasks.
Insufficient resources and capabilities Ensure budget and specific specialist digital skills are available to support the strategic
initiatives including ‘always-on’ activities to continuously engage audiences using search,
social and email marketing.
Relevant customer data not collected or utilised Research to ensure best possible knowledge of target customers; integrate customer
data into existing systems
Lack of control Measure and analyse regularly to take corrective action to ensure achievement of
objectives

Lack of senior management support Ensure support for a long-term digital transformation plan as this will be needed to drive
major strategic initiatives
 How to structure marketing strategy

• Start with the right goal, which is grounded in real economic value.
• Define a value proposition, which is unique but, importantly, deliverable.
• Do things differently; create a distinctive value chain.
• Be prepared to make trade-offs, tailoring a firm’s activities to outperform rivals.
• Create a fit between what the company does, where it wants to be and the
resources available.
• Establish continuity. Planning decisions follow the distinctive position set out by
the original goals.
 Digital transformation plan should emphasis
on the following;
1. Identification of changes to competitive forces in the micro-environment and
macro-environment that will influence customer demand for online experiences
and products.
2. Developing value propositions for customers using online services as part of their
buying process.
3. Definition of the technology infrastructure and information architecture to
deliver these value propositions as a customer experience.
4. Changes to governance of marketing activities affecting the structure, skills and
systems or processes in an organisation.
 The SOSTAC® planning framework

• Situation analysis - where are we now?

• Objectives - where do we want to be? This can include a vision for digital channels,
and also specific numerical objectives.
• Strategy – how do we get there? Strategy summarises how to achieve the
objectives.
• Tactics - defines the usage of tactical digital communications tools. This includes
specific details of the marketing mix.
• Actions - action plans, change management and project management
• Control - looks at the use of management information
 Homework
• Read the 4th Chapter