Digital Marketing

Prof. Vippa Dhingra

 Digital Media
Communications are facilitated through
content and interactive services delivered by
different digital technology platforms
including the Internet, web, mobile phone,
interactive TV, IPTV and digital signage.
 Digital Marketing

• “The application of the Internet and related

digital technologies in conjunction with
traditional communications to achieve
marketing objectives.”
• “Achieving marketing objectives through
applying digital technologies and media.”
 Online Company
Presence
Different forms of online media controlled by
a company including their website, blogs,
email list and social media presences. Also
known as ‘owned media’
 Electronic Customer
Relationship Management (E-CRM)

Using digital communications technologies to

maximise sales to existing customers and
encourage continued usage of online services
through techniques including database,
personalized web messages, customer
services, email and social media marketing.
• Multichannel Marketing - Customer
communications and product distribution are
supported by a combination of digital and
traditional channels at different points in the
buying cycle.
• Customer Journeys - The sequence of online
and offline touchpoints a customer takes
during a buying process or broader customer
experience. Online this may include a range of
digital platforms, communications media,
websites, pages and engagement devices.
 Paid Media
• These are bought media where there is
investment to pay for visitors, reach or
conversions through search, display ad
networks or affiliate marketing.
• Also known as bought media, a direct
payment occurs to a site owner or an ad
network when they serve an ad, a sponsorship
or pay for a click, lead or sale generated.
 Owned Media
• Media controlled by a company including their
website, blogs, email list and social media
presence.
 Earned Media
• The audience is reached through editorial,
comments and sharing online.
• Includes word-of-mouth that can be
stimulated through viral and social media
marketing, and conversations in social
networks, blogs and other communities.
The Intersection of the Three Key Online MediaTtypes
 The growing range of Digital Marketing
Platforms
• Desktop, laptop and notebook platforms
• Mobile phone and tablet platforms
• Other hardware platforms
• Software platforms for managing modern
marketing
 Desktop, Laptop and Notebook Platforms
1. Desktop browser-based platform - This is traditional
web access through the consumer’s browser of choice,
whether Internet Explorer, Google Chrome or Safari.
2. Desktop apps - We don’t hear this platform talked
about much; increasingly users are accessing paid and
free apps from their desktop via the Apple App Store or
the Microsoft equivalent, like Gadgets. This gives
opportunities for brands to engage via these platforms.
3. Email Platforms - While email isn’t traditionally
considered a platform, it does offer an opportunity
separate from browser and app-based options to
communicate with prospects or clients, whether
through editorial or advertising, and email is still widely
used for marketing.
4. Feed-based and API data exchange platforms -
Many users still consume data through RSS
feeds, and Twitter and Facebook status updates
can be considered a form of feed or stream
where ads can be inserted.
5. Video-marketing platforms- Streamed video is
often delivered through the other platforms
mentioned above, particularly through browsers
and plug-ins, but it represents a separate
platform. Television channels delivered through
streaming over the Internet(known as IPTV) are
related to this platform.
 Mobile Phone and Tablet Platforms

• Opportunities to engage consumers through

mobile marketing and location-based marketing.
• Mobile Marketing - Marketing to encourage
consumer engagement when using mobile
phones (particularly smartphones) or tablet
devices.
• Location-based Marketing - Location or
proximity based marketing is mobile marketing
based on the GPS built into phones or based on
interaction with other local digital devices.
 Mobile Phone and Tablet Platforms
1. Mobile Operating System and Browser -
There are mobile browsers which are closely
integrated with the operating system.
2. Mobile-Based apps - Apps are proprietary to
the mobile operating system, whether Apple
iOS, Google Android, RIM or Windows. A big
decision is whether to deliver content and
experience through a browser and/or a
specific app which provides an improved
experience.
 Definition
• Mobile-based apps - Designed to run on
smartphones and tablet computers, apps
provide users with rich mobile content by
deploying the handset’s multiple native
capabilities. Apps are available for download
from app stores hosted by the mobile
operating systems (e.g. iTunes for iOS, Google
Play for Android, Microsoft App Store,
BlackBerry App World).
 Other Hardware Platforms
Gaming Platforms - PlayStation, Nintendo or Xbox, there
are increasing options to reach gamers through ads or
placements within games, for example in-game ads.
Indoor and Outdoor Kiosk-type apps - For example,
interactive kiosks and augmented reality options to
communicate with consumers.
Interactive Signage - The modern version of signage is
closely related to kiosk apps and may incorporate
different methods such as touch screen, Bluetooth or
QR codes to encourage interactive.
Wearables - Smart watches such as the Apple Watch and
smart glasses such as Google Glass.
 Software Platforms for managing Modern Marketing
• SaaS platforms which have made services to
manage marketing more affordable for smaller
businesses and easier to manage for all since
no installation is required.
• It is business applications and software
services are provided through Internet and
web protocols with the application managed
on a separate server from where it is accessed
through a web browser on an end user’s
computer with data stored within ‘The Cloud’.
 The six main categories of system he recommends
marketers review for the range of technologies

1. Marketing experiences - More specialised

technologies that directly affect prospects and
customers across their lifecycle, such as advertising,
email, social media, search engine optimisation,
content marketing, A/B testing, marketing apps –
the ‘front-office’ of modern marketing.
2 Marketing operations - The tools and data for
managing the ‘back-office’ of marketing, such as
analytics, Marketing Resource Management (MRM),
Digital Asset Management(DAM) and agile marketing
management.
3. Marketing Middleware such as Data
Management Platforms (DMPs), tag
management, cloud connectors, user
management and API services.
4. Marketing Backbone Platforms such as customer
relationship management, marketing automation,
content management and e-commerce engines.
5. Infrastructure Services such as databases, big
data management, cloud computing and software
development tools.
6. Internet Services such as Facebook, Google and
Twitter that underlie today’s marketing
environment.
Introduction to Digital Marketing Strategy

• Be aligned with business and marketing strategy

(for example, many companies use a rolling
three-year plan and vision), with more specific
annual business priorities and initiatives.
• Use clear objectives for business and brand
development and the online contribution of
leads and sales for the Internet or other digital
channels. These should be based on models of
the number using the channels.
• Be consistent with the types of customers who
use and can be effectively reached through
the channel.
• Define a compelling, differential value
proposition for the channel which must be
effectively communicated to customers.
• Specify the mix of online and offline
communication tools used to attract visitors to
the company website or interact with the
brand through other digital media such as
email or mobile.
• Support the customer journey through the
buying process as they select and purchase
products using the digital channel in
combination with other channels.
• Manage the online customer lifecycle through
the stages of attracting visitors to the website,
converting them into customers and retention
and growth.
 Application of Digital Marketing
1. Advertising Medium - Display ads on
publisher sites or social networks can be used
to create awareness of brands and demands
for products or services.
2. Direct-response Medium - Targeted search
advertising enables companies to drive visits
to a site when consumers shows intent to
purchase, such as searching for a flight to a
destination.
3. Platform for sales transactions- Online flight
booking is now the most common method
for booking flights both for consumers and
business travellers.
4. Lead-generation method - For booking
business flights, tools can be provided which
help identify and follow up corporate flight
purchases.
5. Distribution channel for distributing digital
products - Today, airlines sell more insurance
services than previously, for example.
 Benefits of Digital Marketing
• Identifying – Internet can be used for marketing
research to find out customers’ needs and wants.
• Anticipating – Internet provides an additional channel
by which customers can access information and make
purchases.
• Satisfying – 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?
 The 5Ss of Internet Marketing
1. Sell – Grow sales
2. Serve – Add value
– giving customers extra benefits online or inform product development

3. Speak – Get closer to customers

- two-way dialogue through web interactions like forums and surveys and
conducting online market research

4. Save – Save costs

- reduce staff, print and postage costs. Savings also accrue through ‘web self-service’
where customers answer queries through online content

5. Sizzle – Extend the brand online

- Achieved through providing new propositions, new offers and new experiences
online including building communities
 Demand Expansion using Direct Internet
channels.
1 Market Expansion - occurs when new
segments of customers are reached who did
not previously buy in a category.
2 Brand Switching - by winning customers from
competitors.
3 Relationship deepening - selling more to
existing customers.
 Digital Business Models
• Business-to-consumer (B2C) - Commercial
transactions between an organization and
consumers.
• Business-to-business (B2B) - Commercial
transactions between an organization and
other organizations (inter-organizational
marketing).
Transaction Alternatives between Businesses, Consumers and Governmental Organizations
Different forms of Online Presence
1 Transactional e-commerce site - enables purchase of
products online.
2 Services-orientated relationship-building website -
Information is provided through the website and e-
newsletters to inform purchase decisions
-Encouraging offline sales and generating enquiries or
leads from potential customers.
- Add value to existing customers by providing them
with detailed information to help support them in their
lives at work or at home.
3 Brand-building site - Their main focus is to
support the brand by developing an online
experience of the brand. They are typical for low-
value, high-volume FMCG brands for consumers.
Tango (www.tango.com) and Guinness (www.guinness.com)

4 Portal or media site - ‘Portal’ refers to a gateway

to information; it is not in common usage today.
This is information both on the site and through
links to other sites. Portals have a diversity of
options for generating revenue including
advertising, commission-based sales, sale of
customer data (lists).
Yahoo!(www.yahoo.com) (B2C) and Smart Insights (www.smartinsights.com) (B2B).
5 Social network or community site - These
sites or parts of sites focus on enabling
community interactions between different
consumers (C2C model).
Eg - Facebook, LinkedIn and Twitter.
 Challenges in Managing Internet Marketing
Strategy
• Unclear responsibilities for the many different
Internet marketing activities.
• No specific objectives are set for Internet
marketing
• Insufficient budget
• No new online value propositions for customers
• Results from digital marketing are not measured
Challenges of Managing Digital Marketing -
Smart Insights (2014)
• Planning – Digital marketing plans are not well
defined.
• Organizational Capabilities
• Integration of digital channels into marketing
• ROI evaluation
 A strategic framework for developing a Digital
Marketing Strategy
A: Defining the online opportunity
1 Set Digital marketing objectives
 1a Evaluate digital marketing performance
 1b Assess online marketplace
B: Selecting the strategic approach
2 Define digital marketing strategy
 2a Define customer value proposition
 2b Define digital communications mix
 A strategic framework for developing a Digital
Marketing Strategy
C: Delivering results online
3 Implement digital marketing plan
 3a Implement customer experience
 3b Execute digital communications
4 Customer profiling
A Generic Digital Marketing Strategy Development Process
 Introduction to Digital Marketing
Communications
• Digital Media Channels - Online communications techniques
used to achieve goals of brand awareness, familiarity,
favorability and to influence purchase intent by encouraging
users of digital media to visit a website to engage with the brand
or product, and ultimately to purchase online or offline through
traditional media channels such as by phone or in-store.
• Display ads - Use of graphical or rich media ad units within a
web page to achieve goals of delivering brand awareness,
familiarity, favorability and purchase intent. Many ads encourage
interaction through prompting the viewer to rollover to play
videos, complete an online form or to view more details before
clicking through to a site.
 Introduction to Digital Marketing
Communications
• Pay-per-click - PPC refers to when a company pays for text ads
to be displayed on the search engine results pages as a
sponsored link (typically above, to the right of or below the
natural listings) when a specific key phrase is entered by the
search users. It is so-called because the marketer pays each time
the hypertext link in the ad is clicked on. If a link is clicked
repeatedly, then this will be detected by the search engine as
click fraud and the marketer will not be charged.
• Search Engine Optimisation - A structured approach used to
increase the position of a company or its products in search
engine natural or organic results listings (the main body of the
search results page) for selected keywords or phrases.
 Introduction to Digital Marketing
Communications
• Affiliate Marketing- A commission-based arrangement
where referring sites (publishers) receive a
commission on sales or leads by merchants (retailers).
Commission is usually based on a percentage of
product sale price or a fixed amount for each sale, but
may also be on a perclick basis, for example when an
aggregator refers visits to merchants.
• Email Marketing - Typically applied to outbound
communications from a company to prospects or
customers to encourage purchase or branding goals
• AMAZON AND THE SITES ‘EVERY DAY CARRY’ AND ‘GEAR PATROL’
• USWITCH AND THE ‘MONEY SAVING EXPERT’ SITE
• THE HOME DEPOT AND THE ‘CONSUMER SEARCH’ SITE
• EBAY AND THE ‘GLORY CYCLES’ SITE
• Etsy Affiliates: Despite its low commission of 4%, Etsy has one of the
most interesting affiliate programs, with a wide variety of products that
attract a very wide audience.
• eBay Affiliates: With very high commissions, between 40% and 80%,
eBay’s affiliate program competes with Amazon’s, offering various
solutions to monetize third-party websites and applications.
• The Zalando Partner Program: Zalando’s affiliate commissions are 8%,
but it has a wide selection of clothing, accessories and shoes online to
provide. Like eBay, Amazon or Etsy, Zalando has a customer community
and a recognized brand, which brings added value.
• AliExpress Affiliate: with a variable commission of up to 50%, AliExpress
competes with the previous ones, and despite its short trajectory (it was
launched in 2010), its affiliate program is a reference in e-commerce.
 Introduction to Digital Marketing
Communications
• Rich media - Advertisements or site content
that are not static, but provide animation,
sound or interactivity.
• Web or Digital Analytics - Techniques used to
assess and improve the contribution of digital
marketing to a business, including reviewing
traffic volume, referrals, clickstreams, online
reach data, customer satisfaction surveys,
leads and sales.
RACE
 RACE
• Step 1: Reach – Build awareness of a brand, its products
and services on other sites and in offline media and build
traffic by driving visits to web and social media presences.
• Step 2: Interact – Engage audience with brand on its
website or other online presence to encourage them to
act or interact with a company or other customers.
• Step 3: Convert – Achieve conversion to generate leads or
sales on web presences and offline.
• Step 4: Engage – Build customer relationships through
time to achieve retention goals.
 The Key Types of Digital Media Channels

Six categories of e-communications tools or media channels

 Different Types of Social Media Marketing
Tools
1 Social networks - The core social platforms in most countries
where people interact through social networks are Facebook for
consumer audiences, LinkedIn for business audiences, Google+
and Twitter for both.
2 Social publishing and news - Nearly all newspapers and
magazines, whether broad or niche, now have an online presence
with the option to participate through comments on articles, blogs
or communities.
3 Social commenting in blogs - A company blog can form the hub
of your social media strategy and you can look at tapping into
others’ blogs, whether company or personal or through blog
outreach.
 Different Types of Social Media Marketing
Tools
4 Social niche communities - These are communities and
forums independent of the main networks, although these do
support sub-groups.
5 Social customer service - Sites like GetSatisfaction, as well as
companies’ own customer support forums, are increasingly
important for responding to customer complaints.
6 Social knowledge - These are reference social networks like
Yahoo! Answers, Quora and similar, plus Wikipedia. They show
how any businesses can engage their audiences by solving
their problems and subtly showing how their products have
helped others.
 Different Types of Social Media Marketing
Tools
7 Social bookmarking- The bookmarking sites like Delicious
(www.delicious.com), which are relatively unimportant in the
UK except if you are engaging technical audiences.
8 Social streaming- Rich and streaming media social sites –
photos, video and podcasting.
9 Social search - Search engines are becoming more social
with the ability to tag, comment on results and, most
recently, vote for them through Google+1.
10 Social commerce- Relevant for the retail sector. It involves
reviews and ratings on products and sharing of coupons
about details.
Online Consumer Behaviour and Implications
for Marketing
Customer Characteristics
1 Demographic variables
2 Psychographic and behavioural variables
 Online Experience Consist of:
1 Information Processing (IP) is very important as it shapes how a consumer
deals with available data and information that will influence their future
behaviour. IP involves the mental processes and senses an individual uses to
interpret the world they inhabit.
2 Perceived Ease of use also needs consideration by digital marketers, as the
easier a website or mobile site is to use the more likely a customer will have
a positive online experience
3 Perceived Usefulness refers to the extent to which the digital offer fits with
the customer’s daily life, for instance, shopping, booking train tickets,
banking etc.
4 Perceived benefits: if a customer feels they will be rewarded in some
positive way by engaging with a digital offer this is likely to generate support
for an online brand
5 Perceived control: if a customer is a skilled user of the digital technology in
question then they will feel they are able to function successfully in this
environment.
 Online Experience Consist of:
6 Skill - the more frequent the visitor to a
website the higher their exposure and the
greater their ability to engage with this digital
content.
7 Trust and risk play an important role in how a
customer behaves online.
8 Enjoyment is an outcome of a positive online
experience
Framework for Understanding Online
Customer Experiences
 Consumer Personas
• A fictional profile that represents a particular
target audience. A thumbnail summary of the
characteristics, needs, motivations and
environment of typical website users.
• Personas are a tool which can help in
understanding online customer characteristics
and behaviour
 Customer Scenarios
(Online Customer Journeys)
Alternative tasks or outcomes required by a
customer. Typically accomplished in a series of
stages or different tasks involving different
information needs across different sites and
platforms.
The Buying Process
 Benefits of Digital Media
1 Interactivity
2 Intelligence
3 Individualisation
4 Integration
5 Industry restructuring
6 Independence of location
Channels requiring integration as part of integrated
e-marketing strategy
The role of mixed-mode buying in Internet
marketing
Key challenges of digital communications

• Complexity
• Responding to competitors
• Responding to changes in technology and
marketing platforms
• Cost
• Attention
 Key communications concepts for digital
marketing
1 Customer engagement
2 Permission marketing
3 Content marketing