MKT558 DIGITAL

MARKETING

Chapter 1
Introduction
to Digital
Marketing
Introduction

 Digital marketing today is about many more types of

audience interaction than simply websites.
 It involves harnessing the following ‘5Ds’ of managing
digital marketing interactions.

Digital Digital Digital Digital Digital

Devices Platforms Media Data Technologies

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 What are digital and multichannel
marketing?

Digital marketing can be defined as:

Achieving marketing objectives through applying digital
media data and technology
Or
The application of digital media, data, and technology
integrated with traditional communications to achieve
marketing objectives.

Digital disruptors: Innovations in

digital media and marketing
technology which enables a
change to a new basis for
competition in a market 3
In-Depth Definitions

•“Digital marketing is the

component of marketing that
utilizes internet and online
based digital technologies
such as desktop computers,
mobile phones and other
digital media and platforms to
promote products and
services”.

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 Paid media.
Also known as bought media, a direct
Three Main payment occurs to a site owner or an
ad network when they serve an ad, a
Types of sponsorship or pay for a click, lead or
sale generated.

Media Examples: Offline, traditional media like

print and TV advertising and direct mail

Channels remain important, accounting for the

majority of paid media spend.

Marketers
Need to
Consider: Owned media.
Media owned by the
Earned
media.

Paid, Owned, brand. Different forms

of online media
The audience
is reached
through
and Earned controlled
company
by a
including
editorial,
comments
Media their website, blogs,
email list and social
and
online.
sharing

media presence.
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Paid,
owned and
earned
media

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Which Platforms/Devices are
Involved?

What ways can you access the Web or Internet through a

browser?
 Laptop
 Desktop
 Smartphone (Mobile operating system and
browser & Mobile-based apps)
 Tablet (iPad)
 Gaming devices (PlayStation, Nintendo or Xbox)
 Other devices (Indoor and outdoor kiosk-type apps,
interactive signage, wearables)

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Key Features of Digital
Marketing
• The interaction and integration between
Internet channels and traditional
channels is a key part of digital
marketing strategy development.
• Digital marketing strategy is essentially
a channel marketing strategy, and it
needs to be integrated with other
channels as part of multichannel
marketing.

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Key Features of
Digital Marketing
Strategy

Effective digital marketing strategy

should:
 Aligned with business and
marketing strategy
 Use clear objective for
business or brand
 Be consistent with type of
customers
 Define a compelling,
differential value proposition
 Specify the mix of online
and offline communication
tools
 Support the customer
 Manage the online
customer life-cycle

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Application of Digital
Marketing
• Digital media offer a range of opportunities for
marketing products and services across the
purchase cycle that companies need to review
as part of their digital strategy.
• Digital media and technologies can be used
as follows:
• Advertising medium
• Direct-response medium
• Platform for sales transactions.
• Lead-generation method.
• Distribution channel
• Customer service mechanism.
• Relationship-building medium.

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A low-cost airline example of digital media and technologies applications:

● Advertising medium: Display ads on publisher sites or social networks can be used to
create awareness of brands and demands for products or services.

● Direct-response medium: Targeted search advertising enables companies to drive visits to

a site when consumers show intent to purchase, such as searching for a flight to a destination.

● Platform for sales transactions: Online flight booking is now the most common method for
booking flights both for consumers and business travellers.

● Lead-generation method: For booking business flights, tools can be provided which help
identify and follow up corporate flight purchases.

● Distribution channel: such as for distributing digital products. Today, airlines sell more
insurance services than previously, for example.

● Customer service mechanism: For example, customers may ‘self-serve’ more cost-
effectively by reviewing frequently asked questions.

● Relationship-building medium: Here a company can interact with its customers to better
understand their needs and publicize relevant products and offers. For example, EasyJet uses
its email newsletter and tailored alerts about special deals to encourage repeat flight bookings.

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 Benefits of Digital Marketing

• Marketing is the management

process responsible for
identifying, anticipating and
satisfying customer
requirements profitably.’
• This definition emphasizes the
focus of marketing on the
customer, while at the same time
implying a need to link to other
business operations to achieve
this profitability.

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1
3
  As part of strategy
development, organisations
require clarity on the type of
business model they will
develop.
 Business and consumer

Alternatives business models is a basic

aspect of the types of online
business model is whether the
of digital proposition offered appeals to
consumers or businesses.
1
4 business  Because of this distinction,
digital marketing opportunities
models are often described in terms of
the extent to which an
organization is transacting with
consumers (business-to-
consumer, B2C) or other
businesses (business-to-
business, B2B).
Business
and Business-to-Consumer
Consumer (B2C)
Business Commercial transactions between
Model an organization and consumers

Business-to-Business
(B2B)
Commercial transactions
between an organization and
other organizations (inter-
organizational marketing)

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Alternatives
of digital
business
models

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Differences
between e- E-Commerce
• Electronic commerce (e-commerce) refers to both
commerce financial and informational electronically mediated
transactions between an organization and any third party
and e- it deals with.
business • In simple, it is a process of selling and buying which
done via the web or the internet.
• E.g.: transactions of buying or selling products via
Shopee platform

E-Business
• Similar to e-commerce but broader in scope and refers
to using digital technology to manage a range of
business processes incorporating the sell-side and buy-
side e-commerce.
• In simple, it refers to the use of internet, extranet, web,
and intranet to conduct businesses.
• E.g.: activities in e-business may includes research and
development, marketing, manufacturing and inbound
and outbound logistics.

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The
distinction
between
e-business
and e-
commerce

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 CHALLENGES IN DEVELOPING AND
MANAGING DIGITAL MARKETING STRATEGY

Planning. Half (50 per Organisational

cent) of businesses capabilities. Nearly half
surveyed do not have a (43 per cent) of
defined digital plan or businesses have a well-
strategy although they are defined performance
active in digital marketing. improvement process

Integration of digital channels ROI evaluation. A

into marketing. Only a quarter significant proportion (39
of companies (26 per cent) per cent) see opportunities
were happy with their level of from digital marketing but
integration of digital marketing find ROI measurement
and traditional challenging – a key area
communications. for managers to address.

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A generic
digital
marketing
strategy
development
process

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Using digital media channels to
support business objectives
RACE – a practical framework develop by Smart Insight (2010) to help marketers
manage and improve the commercial value that their organizations gain form digital
marketing.
RACE consists of four steps designed to help engage prospects, customers and
fans with brands throughout the customer lifecycle:

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: Act – Engage audience with brand on its website or other online presence to
encourage them to interact with a company or other customers. In many sectors, the
aim of the Act stage is lead generation, i.e., to gain permission to market to a
prospect using email, SMS or mobile app notifications.
Step 3: Convert – Achieve conversion to generate sales on web presences and
offline.
Step 4: Engage – Build customer relationships through time to achieve retention
goals.
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The RACE model

•Source: Smart
Insights (2010)

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Introduction to Digital Marketing
Communications
 Marketing campaigns were based on traditional media
including TV, print and radio ads, and direct mail
supported by public relations.
 For example, in an online campaign, display ads ,
pay-per-click (PPC) ads such as the Sponsored Links
in Google; search engine optimisation (SEO), affiliate
marketing where sites that generate a sale for a
merchant gain commission; and email marketing.
 To understand the relationship between the new digital
communications techniques and traditional
communications, in order that new opportunities are
not missed, and campaigns can be planned.

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Digital
Marketing Vs.
Traditional
Marketing

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Terms
used in
digital
marketing

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Terms
used in
digital
marketing

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The key types of
digital media channels

 There are many online

communications tools that marketers
must review as part of their
communications strategy or as part of
planning an online marketing
campaign.
 To assist with planning, Chaffey and
Smith (2012) recommend that these
online marketing tools are divided into
the six main groups:

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The key
types of
digital
media
channels

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Different types
of social media
marketing
tools

•A social media site is much

more than simply a website.
•From a technology
viewpoint, most of these
sites can be considered as
software applications or
web services that give
access to users at different
levels of permission and
then enable management
and storage of different
forms of user-generated
content.

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 • Digital marketing communications differ
significantly from conventional marketing
communications because digital media-
enabled new forms of interaction and
new models for information exchange.
• The 6 Is of e-marketing mix are as
follows:
Benefits
of Digital
Media Interactivity Intelligence
Individualizatio
n

Industry Independence
Integration
Restructuring of Location

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Benefits of digital media :Interactivity

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Benefits of digital media :Intelligence

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Benefits of digital
media :Individuali
zation

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Benefits of digital media :Integration

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Benefits of digital media : Industry
restructuring

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Benefits of digital media :
Independence of location

Has the possibility to increase the reach: to sell into

international markets.

Provides accountability in digital campaigns:

through the use of measurement systems like
Google Analytics

Provides straightforward testing at a lower cost with

the option to trial alternative creative executions.

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Key Challenges of Digital Communications

Complexity

Responding to
Competitors
Responding to
changes

Cost

Attention

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 Three concepts that underpin
digital communications and
Key inbound marketing across the
digital media:
communication
concepts for
digital marketing
Customer engagement

Permission marketing

Content marketing

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Key Communications Concepts for
Digital Marketing

1. Permission Marketing
 Permission marketing is a term that refers to consumers opting
to receive marketing offers and announcements from a brand.
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 Replace the traditional method - Interruption marketing—any
marketing message that users didn’t ask to receive. E.g.: TV
and radio ads, billboards, pop-ups in the browser, and annoying
ads on YouTube, which disturb users’ activities.
 Examples of permission marketing:
 Opt-in email marketing
 Chatbot marketing
 SMS marketing
 Web push notifications
Key Communications Concepts 40
for Digital Marketing

2. Content Marketing
Content marketing refers to the management
of text, rich media, audio and video content
aimed at engaging customers and prospects to
meet business goals.
Today, by content we refer to the combination
of static content forming web pages, but also
dynamic rich media content that encourages
interaction.
Videos, podcasts, user-generated content and
interactive product selectors and quizzes
should also be considered as content that
should be refined to engage issues.
 Key Communications Concepts 41
for Digital Marketing

2. Content Marketing (Cont.)

Elements of content marketing strategy to be
planned and managed:

Content
media
Goals for Content
content distribution
engagement
value

Content Content
management Interaction &
platform participation
Key Communications 42
Concepts for Digital
Marketing

3. Customer Engagement
 Customer engagement is repeated
interactions through the customer lifecycle
prompted by online and offline
communications aimed at strengthening the
long-term emotional, psychological and
physical investment a customer has with a
brand.
 Highly engaged customers buy more,
promote more, and demonstrate more loyalty.
 Providing a high-quality customer experience
is an important component in your customer
engagement strategy.