Description
2nd
Semester 2021 -2022
E-Marketing
The College of Administrative and Finance Sciences
E-commerce Department
E-Marketing (ECOM301)
Digital Marketing Plan Project
You work for a company as a digital marketing manager and you’ve been asked to prepare a
comprehensive digital marketing campaign. The campaign will run for the duration of one year,
starting January until December 2022.
Important note:
You can choose any company to work with as long as:
•
It is a local company.
•
It is a startup that was established in the last (3 – 6) years, 2014 onwards.
•
It can belong to any industry sector.
ECOM 301 Project
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2nd
Semester 2021 -2022
E-Marketing
Requirements
Part 1, around (1500) words: Due week 6, on 05/03/2022. (Refer to the Textbook Chapters
2, 3, 4, 5 & 6 and apply the following in the context of your company)
1. Investigate the micro-environment as part of the situation analysis for your company.
a. Competitors analysis
b. Suppliers and/or Digital Marketing intermediaries.
c. Customers’ persona.
2. Summaries the macro-environment variable your company needs to monitor when
operating the digital marketing campaign. (two or three variables for each force are
sufficient)
a. Technological forces.
b. Legal forces.
c. Economic forces.
d. Political forces.
e. Social forces.
3. Devise a digital marketing strategy for your campaign. (refer to figure 4.5, page 147 or
ch4, slide 9)
a. Where are you now? (situation analysis)
b. Where do you want to be? (business objectives)
c. How are you going to get there? (strategy)
d. How exactly do you get there? (tactics)
e. Who does what and when? (actions)
f. How do you monitor performance? (control)
4. Summaries the marketing mix best suitable for your campaign. (refer to ch5)
a. Product variables
b. Price variables
c. Place variables
d. Promotion variables
e. Process variables
ECOM 301 Project
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E-Marketing
5. How can you implement relationship marketing for your campaign? (refer to ch6)
a. Could you create a virtual community? And how does it help the relationship
marketing.
b. Could you use digital media to support customers’ advocacy? And how?
ECOM 301 Project
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Semester 2021 -2022
E-Marketing
Part 2, around (1000) words: Due week 12. on 23/04/2022. (Refer to the Textbook Chapters
7, 8, 9 &10) – For legal reasons, you will not actually create business profiles and launch a
campaign on different platforms. You will merely write the proposed plan and the expected
results and accumulated costs, using real facts from the chosen used platforms. So, do the
proper research and choose wisely..
Create a campaign for your company to launch, starting January 2021 till December, that
will be active for 12 months. Marketing budget: SR 450,000 to spend on digital advertising
media over the next 12 months. The budget also includes up to SR 340,500 for advertising
creative and content development, and for the company to manage the program.
a. What is your campaign message? (about your digital campaign message)
b. What is your digital marketing campaign Schedule: recommend digital marketing
content and the schedule for the content? (Must include timeline for the content
distribution, frequency of posts and ads).
c. What platforms and digital media you will use to deploy your campaign, and for
which purpose? Social media platforms (Facebook, Instagram, Twitter, LinkedIn,
Snapchat) and any other platform that might help achieve your goals, like google,
YouTube, etc. (Must include screenshots of the platforms’ process of creating the
campaign). Also, include a table of the budget allocations for each platform on a
monthly basis. Try to justify your selection.
d. Monitoring and Optimization: describe how you will measure and improve
digital marketing performance during the campaign. What tools you will use to
monitor the campaign’s activity. (Must include screenshots of the monitoring
tools that will keep track of your costs and activity).
ECOM 301 Project
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E-Marketing
Part 3, Instructors will manage the date and time for presentation during week 13&14.
Make a power-point presentation of your Project work mentioning all the above contents and
present in the class. There must be minimum 10 slides in the presentation with a good background
design, readable font size and style with appropriate color.
ECOM 301 Project
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2nd
Semester 2021 -2022
E-Marketing
Important instructions and Notes
Part 1
End of week 6 Saturday 05/03/2022
15 Marks
Part 2
End of week 12 Saturday 23/04/2022
15 Marks
Part 3
Instructors will manage the date and time for presentation during
week 13&14
40 Marks
10 Marks
1. This is an individual work.
2. You will submit online through blackboard.
3. A cover page is required for each submission, one mark will be deducted if there is no
cover page.
4. The submitted document needs to be structured as follow: a cover page, assignments’
requirements’, then your answers. without these instructions.
5. The assignments parts will be each submitted on a different date. However, part 2 needs
to contain part one.
6. The reference list, a minimum number of 10 references and citations is required, and you
must use APA referencing style.
•
Quotations must be cited to its resources.
7. The paper styles:
•
•
The format of the paper needs to be introduction, main body and conclusion.
Your work needs to be consistent in terms of style, tone and appearance.
•
Font size: 12.
•
Font type: Times New Roman,
•
Page are numbered.
•
1.5 spacing between lines and paragraphs.
•
Left alignment.
8. Entire project word count, around 2500 words.
9. You must check the spelling and grammar mistakes before submitting the
assignment. You can ask someone to proofread your work or use online tools.
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E-Marketing
10. Up to 20% of the total grade will be deducted for providing a poor structure of
assignment. Structure includes these elements: paper style, free of spelling and
grammar errors.
11. In case of any questions, please refer to your instructor.
Best of Luck!!
ECOM 301 Project
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Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
Student Name:
Student ID:
Course Title:
E-Commerce
Academic Year/ Semester:
2022/ 6
Instructor Name:
Course Code:
ECOM301
CRN:
Student Grade:
Grade Level:
ECOM301 – Project
Nexen Care
Second Semester 2022-2023
1
Table of Contents
Introduction ……………………………………………………………………………………………………………………………………………………………………………. 3
Micro-Environment Analysis …………………………………………………………………………………………………….……3
Macro-Environment Analysis ……………………………………………………………………………………………………………………………………….. 4
Digital Marketing Strategy ……………………………………………………………………………………………………………………………………………… 6
Marketing Mix
…………………………………………………………………………………………………………………………………………………………………….. 7
Relationship marketing implemenation
…………………………………………………………………………………………………………………… 8
References ……………………………………………………………………………………………………………………………………………………………………………… 9
2
Digital Marketing Plan Project: Nexen Care
Nexen Care is a Saudi healthcare software company. The startup develops smart
platforms and interactive electronic systems for managing healthcare procedures. The Nexen
system focuses on helping healthcare providers consolidate and automate all files for easy
storage, access, and retrieval. The company provides cloud storage solutions, integration, and a
central system for unified files (Nexencare.com). Nexen Care envisions to be a pioneer in digital
health transformation in Saudi Arabia. Currently, the company has partnered with 96 health
facilities and has over 3.7 million visitors on its website. Most of the facilities that have
implemented the Nexen system are located in Jeddah. They include King Abdullah Medical
Complex, East Jeddah Hospital, King Fahd Hospital, and Al-Thaghr Hospital (Nexencare.com).
The digital marketing campaign plan offers the company an opportunity to popularize its brand
and increase sales.
Micro-Environment Analysis
The micro-environment is a crucial part of the situation analysis. It shows how the
company responds in its marketplace. The analysis provides insight into competitors, suppliers,
and customers (Chaffey & Ellis-Chadwick, 2019). It is also essential for the company to identify
opportunities in the internal environment.
Competitor Analysis
The Healthcare software industry is an upcoming industry in Saudi Arabia. Most players
in this market are startups. However, the increasing automation of healthcare services has attracted
foreign companies to the country in recent years. According to AlSadrah (2020), the Saudi
Ministry of Health started expanding the use of electronic medical records (EMRs) in government
hospitals. One of the key competitors in the industry is Epic Care, an American healthcare software
company. The company was introduced in Saudi Arabia in 2018 through its partnership with Johns
Hopkins Aramco Healthcare (Monegain, 2018). Nexen Care also competes with Cloudpital, which
provides EMR software. These companies are well-established and have international recognition.
As such, they pose a threat to Nexen Care.
3
Suppliers/Digital Market Intermediaries
Nexen Care reaches and influences the purchase behavior of its suppliers and digital
market intermediaries through various approaches. These include Google search engines, the
company’s website, web pages, and review sites. Crucially, Nexen Care uses social networking
sites, including Facebook and Twitter, to reach its intermediaries.
Customers Persona
A customer persona or buyer persona refers to the traits of the target customer. It involves
understanding customers’ attitudes, needs, wants, and technology usage (Chaffey & EllisChadwick, 2019). Knowing customers’ characteristics helps in communicating and developing
marketing propositions. Ideally, Nexen Care targets health care facilities as its primary
customers. For example, King Abdullah Medical Complex is a hospital under the Saudi Ministry
of Health. The hospital is located in Jeddah and provides elective medical and surgical services.
The facility receives many patients every day and is interested in automating patient data and
files. The hospital also focuses on standardizing its medical procedures.
Macro-Environment Analysis
Macro-environment describes the external forces that influence the success of the
organization. Most of the factors are beyond the company’s control. PESTLE (Political,
economic, social, technological, and legal) approach analyses the company.
Technological Forces
The success of Nexen Care in the healthcare software market depends on opportunities
brought by technological factors. These are forces that impact product development and the
accessibility of the target market. Some of the technological changes influencing Nexen’s macroenvironment include the emergence of cloud computing, virtual health, and electronic health (eHealth). Cloud computing technology has enabled big data to be stored safely and affordably,
while e-health technology allows virtual care delivery.
Legal Forces
Legal forces influence the promotion and sale of products online. Legal factors include
laws, rules, and policies governing healthcare software products. For instance, the Healthcare
Practice Code in Saudi Arabia requires all healthcare facilities to protect patients’ data, secrets,
and confidentiality (Elgujja & Arimoro, 2019). As a healthcare software provider, Nexen Care is
4
also expected to comply with the patient and medical data privacy laws and regulations. Another
important legal variable in obtaining a government permit from the Ministry of Health to develop
and sell healthcare software products.
Economic Forces
Economic also plays a crucial role in the macro-environment and digital marketing.
Economic factors refer to changes in economic conditions in the country that influence consumer
spending and digital marketing planning (Chaffey & Ellis-Chadwick, 2019). The outbreak of the
Covid-19 pandemic affected most sectors, including healthcare. Several facilities experienced a
decline in sales and revenues due to movement restrictions, affecting hospital visits. This means
that most healthcare facilities could not afford to purchase and implement the Nexen system.
Notably, the impact of coronavirus undermined the demand for the product.
Political Forces
Political forces entail government influence in the organization. The political condition in
Saudi Arabia is essential in determining the company’s success and its marketing campaign. The
Saudi government has absolute control of the internet and online services due to its internet
service provider (ISP) access. According to Freedom House (2019), Saudi Arabia scored 25 out
of 100 in internet freedom. This implies that the country is not free in terms of online
information as a result of government restrictions and extensive surveillance. However, the
government has increased internet connections in rural areas. As of 2019, internet connectivity in
underserved areas had reached a 75 percent completion rate (Freedom House, 2019). Saudi’s
Communications and Information Technology Commission (CITC) has also started rolling out
5G network and infrastructure, which is essential in facilitating the adoption of the Nexen system
in healthcare facilities.
Social Forces
The increase in internet penetration is one of the leading social forces driving Nexen’s
marketing campaign. Most Saudis use smartphones to access crucial services online. The World
Bank (2020) indicates that 98 percent of Saudis used the internet in 2020. Internet connection is
vital in developing a marketing campaign. For instance, Nexen Care needs to increase its online
presence to appeal to more customers. Furthermore, customers are increasingly becoming techy
savvy. As such, the demand for online health services such as virtual care is rising.
5
Digital Marketing Strategy
The digital marketing strategy of the campaign plan helps evaluate the company’s
position in the market. The analysis employs SOSTAC (situation analysis, objectives, strategy,
tactics, actions, and control.
Situation Analysis
Situation analysis indicates where the company is at the moment. The SWOT analysis
technique is used to evaluate the position. For instance, in terms of strengths, Nexen Care is
considered a pioneer in healthcare software in Saudi Arabia. The ability to provide a smart
platform and unified and efficient healthcare file is an advantage (Nexencare.com, n.d).
Weaknesses of the company include a lack of adequate online information and poor brand
recognition. However, the company enjoys opportunities such as untapped local markets,
technological advancement, and increasing online services demand. Competition from foreign
well-established companies like Epic Systems is a significant threat facing Nexen Care.
Business Objectives
Business objectives in the marketing strategy indicate where the company wants to be in
future. Nexen wants to be a pioneer in digital health transformation (Nexencare.com, n.d). Its
goal is to provide a unified health file, Takamul, and an efficient and flexible smart platform.
Strategy
The strategy shows how the company will achieve its goals and objectives. Nexen Care
plans to offer high-quality healthcare software products at an affordable price. The smart
platform reflects customers’ needs and wants.
Tactics
Nexen Care has partnered with various stakeholders in order to achieve its goals and
objectives. For instance, it has helped over 96 hospitals to implement Nexen System
(Nexencare.com, n.d). The company has also cooperated with General Electric (GE) and the
Saudi Ministry of Health to deliver the Mawwad application.
Actions
The company utilizes its information technology (IT) department to develop and
implement its tactics. These include designing and developing the Nexen software system. It also
uses a marketing unit to popularize its products and services.
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Control
The company has established an internal control and quality assurance department to
oversee quality management. This unit ensures the appropriate implementation of the Nexen
system and provides support and technical services.
Marketing Mix
A marketing mix is a model used in developing and implementing a market strategy. The
common approach uses the 4Ps of product, place, price, and promotion (MindTools, 2022).
Product Variables
Nexen Care focuses on producing and selling high-quality healthcare software products.
Nexen system helps health facilities manage medical procedures and administrative data
electronically. These include system units in nursing, clinic, reception, appointments, pharmacy
and laboratory.
Price Variables
Nexen Care has adopted a competitive pricing policy to woe customers and enhance its
penetration into the market. It also has free elements such as technical support.
Place Variables
Nexen Care operates in Saudi Arabia. Currently, the company has linked 96 health
facilities in Jeddah to the Nexen system.
Promotion Variables
Nexen uses various strategies to promote its products and services. These include social
media sites, the company’s website, and search engines. Nexen also relies on word-of-mouth to
reach its customers.
Process Variables
Nexen system allows health facilities to collect and store medical data electronically. The
system also helps to organize and manage procedures and administrative tasks. Customers can
order products directly from the company.
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Relationship Marketing Implementation
Virtual Community and Relationship Marketing
Nexen Care considers creating a virtual community. The company understands the input
of the virtual community in enhancing its relationship with customers. According to Young
(2012), virtual communities facilitate knowledge creation and sharing ideas. Nexen plans to
utilize social media and web-based tools to interact with its customers. This will increase
customer relationships and satisfaction.
Digital Media and Customer’s Advocacy
Yes, Nexen Care encourages the use of digital media to support customer advocacy.
Social media platforms such as Twitter and Facebook allow customers to share their views,
comments, and discontent freely. This allows the company to gauge their experiences and adjust
appropriately.
8
References
AlSadrah S. A. (2020). Electronic medical records and health care promotion in Saudi
Arabia. Saudi Medical Journal, 41(6), 583–589.
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Strategy, Implantation, and
practice (Seventh edition). Pearson.
Elgujja, A. & Arimoro, A. (2019). A Review of the Patients’ Right of Confidentiality under the
Saudi Arabian Laws. 10.20944/preprints201908.0231.v1.
Freedom House. (2019). Freedom on the net 2019: SAUDI Arabia.
MindTools. (2022). The Marketing Mix and the 4Ps of Marketing.
Monegain, B. (2018). Epic EHR now live at Johns Hopkins Aramco Healthcare in Saudi Arabia.
Health IT News,
a%20is%20live%20on,Epic%20shop%20in%20Saudi%20Arabia.
Nexencare.com. (n.d). Nexen Care.
The World Bank. (2020). Individuals using the Internet (% of population) – Saudi Arabia.
Young, J. (2012). 9 – Community and culture. Personal Knowledge Capital. Chandos Publishing
9
Brief contents
Preface
About the authors
Acknowledgements
Part 1 Digital marketing fundamentals
1 Introducing digital marketing
2 Online marketplace analysis: micro-environment
3 The digital macro-environment
Part 2 Digital marketing strategy development
4 Digital marketing strategy
5 Digital media and the marketing mix
6 Relationship marketing using digital platforms
Part 3 Digital marketing: implementation and
practice
7 Delivering the digital customer experience
8 Campaign planning for digital media
9 Marketing communications using digital media channels
10 Evaluation and improvement of digital channel performance
Glossary
Index
Contents
Preface
About the authors
Acknowledgements
Part 1
Digital marketing fundamentals
1 Introducing digital marketing
Learning objectives
Questions for marketers
Links to other chapters
Introduction – how has digital marketing transformed marketing?
How will this book help me?
Digital disruptors
Definitions – what are digital marketing and multichannel marketing?
Paid, owned and earned media
Introduction to digital marketing strategy
Key features of digital marketing strategy
Applications of digital marketing
Benefits of digital marketing
Alternative digital business models
What is the difference between e-commerce and digital business?
Different forms of functionality of digital presence
Digital marketing insight 1.1
Social commerce – how much do social networks influence purchase?
Challenges in developing and managing digital marketing strategy
A strategic framework for developing a digital marketing strategy
Introduction to digital marketing communications
Using digital media channels to support business objectives
The key types of digital media channels
Different types of social media marketing tools
Benefits of digital media
Key challenges of digital communications
Key communications concepts for digital marketing
Case study 1 eBay thrives in the global marketplace
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
2 Online marketplace analysis: micro-environment
Learning objectives
Questions for marketers
Links to other chapters
Introduction
Situation analysis for digital marketing
The digital marketing environment
Understanding how customers interact with digital markets
Digital marketing insight 2.1
Resources for analysing the online marketplace
Customer analysis to understand the digital consumer
Demand analysis and conversion marketing
Implications for marketing planning: conversion models
Consumer choice and digital influence
Digital marketing insight 2.2
M-shopping can be thoughtful, motivated and reluctant
Customer characteristics
Social media and emotions
Consumer personas
Digital marketing insight 2.3
How do your customers really feel?
Competitors
The shape and nature of online competitive markets
Competitor analysis and benchmarking
Suppliers
Digital marketing intermediaries
New channel structures
Digital business models for e-commerce
Digital revenue models
Case study 2 Boo hoo – learning from the largest European dot.com failure
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
3 The digital macro-environment
Learning objectives
Questions for marketers
Links to other chapters
Introduction
The rate of environment change
Technological forces
A short introduction to Internet technology
URL strategy
How does the Internet work?
Infrastructure components of the Internet
Web standards
Digital marketing insight 3.1
W3C
Text information – HTML (Hypertext Markup Language)
Text information and data – XML (eXtensible Markup Language)
Javascript
Application programming interfaces (APIs)
Cyber security
Digital marketing insight 3.2
The main website security risks
Approaches to developing secure systems
Mobile and SMS messaging and applications
Mobile apps
Digital marketing insight 3.3
JustPark changes the rules of the parking game
QR Codes
Wi-Fi
Bluetooth wireless applications
Emerging technologies
Assessing the marketing value of technology innovation
Economic forces
Market growth and employment
Economic disruption
Digital marketing insight 3.4
E2E economy
Political forces
Political control and democracy
Internet governance
Taxation
Tax jurisdiction
Legal forces
Legal activities can be considered unethical
1 Data protection and privacy law
Digital marketing insight 3.5
Understanding cookies
2 Disability and discrimination law
3 Brand and trademark protection
Digital marketing insight 3.6
How much is a domain worth?
4 Intellectual property rights
5 Online advertising law
Social forces
Social exclusion
Case study 3 Social media – do celebrities call all the shots?
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
Part 2
Digital marketing strategy development
4 Digital marketing strategy
Learning objectives
Questions for marketers
Links to other chapters
Introduction
Understanding the impact of digital disruptors
Digital marketing strategy as a channel marketing strategy
Digital marketing insight 4.1
Retail digital channels and touchpoints
The scope of digital marketing strategy
Digital marketing insight 4.2
DHL and Sainsbury’s Argos support multichannel
Importance of integrated digital marketing strategy and digital
transformation
How to structure a digital marketing strategy
Situation analysis
Internal audit for digital marketing
Customer research
Resource analysis
Digital marketing insight 4.3
Consumer profiles
Competitor analysis
Intermediary analysis
Assessing opportunities and threats
Setting goals and objectives for digital marketing
The online revenue contribution
Setting SMART objectives
Digital marketing insight 4.4
Black Friday, boost sales
Frameworks for objective setting
Strategy formulation for digital marketing
Decision 1: Market and product development strategies
Decision 2: Business and revenue models strategies
Decision 3: Target marketing strategy
Decision 4: Positioning and differentiation strategy (including the marketing
mix)
Digital marketing insight 4.5
How did cardboard boxes singing ‘give a little bit of my love’ connect to
the minds of millions of shoppers?
Decision 5: Customer engagement and social media strategy
Decision 6: Multichannel distribution strategy
Decision 7: Multichannel communications strategy
Decision 8: Online communications mix and budget
Decision 9: Organisational capabilities (7S framework) and governance to
support digital transformation
Strategy implementation
Assessing different digital projects including marketing technology
The online lifecycle management grid
Case study 4 ASOS shifts the focus of high-street retailing
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
5 Digital media and the marketing mix
Learning objectives
Questions for marketers
Links to other chapters
Introduction
What is the marketing mix?
Product
1 Options for varying the core product
2 Options for offering digital products
3 Options for changing the extended product
Digital marketing insight 5.1
Digital players enter Hollywood?
4 Conducting research online
5 Speed of new product development
6 Speed of new product diffusion
The long tail concept
Branding in a digital environment
Success factors for brand sites
Brand identity
Brand names for online brands
Price
Digital marketing insight 5.2
Up up and away – for a price
1 Increased price transparency
Digital marketing insight 5.3
Discounting options for online services
2 Downward pressure on price
Digital marketing insight 5.4
Price elasticity of demand
3 Innovative pricing approaches
4 Alternative pricing structure or policies
Place
1 Place of purchase
Digital marketing insight 5.5
Digital Town: localised search and collaborative trading
2 New channel structures
3 Channel conflicts
4 Virtual organisations
Promotion
People, Process and Physical evidence
People
Process
Physical evidence
Case study 5 Spotify streaming develops new revenue models
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
6 Relationship marketing using digital platforms
Learning objectives
Questions for marketers
Links to other chapters
Introduction
Digital marketing insight 6.1
The goals of marketing orchestration
Structure of this chapter
Using social media to improve customer loyalty and advocacy
What is social media marketing and why is it important?
What are the main social media platforms?
Social media activities requiring management
The challenge of customer engagement
Benefits of using CRM to support customer engagement
Marketing applications of CRM
CRM technologies and data management
Using ‘Big Data’ and Artificial Intelligence to support data-driven marketing
Artificial Intelligence for marketing
Customer lifecycle management strategy
Permission marketing
Personalisation and mass customisation
Using digital media to increase customer loyalty and value
Determining what customers value
The relationship between satisfaction and loyalty
Measuring the voice of the customer in digital media
Differentiating customers by value and engagement
Lifetime value modelling
Product recommendations and propensity modelling
Case study 6 Dell gets closer to its customers through its social media
strategy
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
Part 3
Digital marketing: implementation and practice
7 Delivering the digital customer experience
Learning objectives
Questions for marketers
Links to other chapters
Introduction
Creating effective digital experiences
Structure of this chapter
Planning website, app design and redesign projects
Who should be involved in a digital experience project?
Digital marketing insight 7.1
Improving site effectiveness
Prototyping
Agile software development
Digital marketing insight 7.2
Success factors for delivery
Initiation of a digital experience project
Domain name selection and registration
Uniform resource locators (URLs)
Selecting a hosting provider
Website performance optimisation
The availability of the website
Defining site or app requirements
Business requirements
Usability requirements
Web accessibility requirements
Personalisation requirements
Localisation and cultural customisation
Reviewing competitors’ websites
Designing the information architecture
Card sorting
Blueprints
Wireframes
Landing pages
Designing the user experience
Evaluating designs
Elements of site design
Mobile design requirements and techniques
Mobile app development and personalisation requirements
How IoT, VR and AR experiences will integrate with M2M interactions
Virtual reality and augmented reality
Site navigation schemes
Digital marketing insight 7.3
Taking the mobile site vs app decision
Managing and testing content
Criteria for selecting a content management system
Testing the experience
Online retail merchandising
Site promotion or ‘traffic building’
The impact of service quality on e-loyalty
Tangibles
Reliability and responsiveness
Assurance
Multichannel communications preferences
Empathy
The relationship between service quality, customer satisfaction and loyalty
Case study 7 Refining the online customer experience at i-to-i.com
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
8 Campaign planning for digital media
Learning objectives
Questions for marketers
Links to other chapters
Introduction
The structure of this chapter
The characteristics of digital media
1 From push to pull
2 Interactive dialogues
3 From one-to-many to one-to-some and one-to-one
4 From one-to-many to many-to-many communications
5 From ‘lean-back’ to ‘lean-forward’
6 The medium changes the nature of standard marketing communications
tools such as advertising
7 Increase in communications intermediaries
8 Integration
9 Timing of campaign communications have additional ‘always-on’ and realtime marketing components
Digital marketing insight 8.1
#OpenYourWorld shares individual’s views
Step 1. Goal setting and tracking for interactive marketing
communications
Terminology for measuring digital campaigns
Examples of digital campaign measures
Campaign response mechanisms
Online response mechanism
Digital marketing insight 8.2
Chatbots help you to cook
Digital marketing insight 8.3
What’s in a hashtag – #!?
Step 2. Campaign insight
Customer insight for digital marketing campaigns
Step 3. Segmentation and targeting
Step 4. Offer, message development and creative
Content marketing
Step 5. Budgeting and selecting the digital media mix
1 Level of investment in digital media techniques in comparison to offline
promotion
2 Selecting the right mix of digital media communications tools
Digital marketing insight 8.4
Campaign tracking in Google Analytics
3 Level of investment in digital assets
Step 6. Integration into overall media schedule or plan
Key activities in media selection and planning
Digital marketing insight 8.5
Different forms of campaign integration
Case study 8 Facebook – a Titan of the digital age
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
9 Marketing communications using digital media channels
Learning objectives
Questions for marketers
Links to other chapters
Introduction
How is this chapter structured?
Digital marketing insight 9.1
How balanced is your referrer mix?
Search engine marketing
What is SEO?
Advantages and disadvantages of SEO
Best practice in planning and managing SEO
Digital marketing insight 9.2
Is SEO a zoo of Pandas and Penguins?
Digital marketing insight 9.3
Reviewing the links into a site
Paid search marketing
Advantages and disadvantages of paid search marketing
Best practice in planning and managing paid search marketing
Online public relations and influencer relationship management
What is online public relations?
Advantages and disadvantages of online public relations
Best practice for online public relations and IRM
Online partnerships including affiliate marketing
Affiliate marketing
Advantages and disadvantages of affiliate marketing
Best practice in planning and managing affiliate marketing
Online sponsorship
Interactive display advertising
What is display advertising?
Advantages and disadvantages of display advertising
Best practice in planning and managing display ad campaigns
Opt-in email marketing and mobile messaging
What is email marketing?
Opt-in email options for customer acquisition
Opt-in email options for prospect conversion and customer retention (house
list)
Digital marketing insight 9.4
SEAT combines email with display advertising to increase awareness
Advantages and disadvantages of email marketing
Best practice in planning and managing email marketing
Mobile text messaging and mobile push notifications
Social media and viral marketing
Viral marketing
Advantages and disadvantages of social media and viral marketing
Best practice in planning and managing viral marketing
Digital marketing insight 9.5
Is social media ‘mostly a waste of time’ and an ‘infantile delusion’?
Offline promotion techniques
Advantages and disadvantages of using offline communications to support ecommerce
Incidental and specific advertising of the online presence
Public relations
Direct marketing
Other physical reminders
Word-of-mouth marketing
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
10 Evaluation and improvement of digital channel performance
Learning objectives
Questions for marketers
Links to other chapters
Introduction
Performance management for digital channels
Stage 1: Creating a performance management system
Stage 2: Defining the performance metrics framework
Stage 3: Tools and techniques for collecting insight, running processes and
summarising results
Digital marketing insight 10.1
Focus on measuring social media marketing
Content management process
How often should content be updated?
Responsibilities for customer experience and site management
Who owns the process?
Who owns the content?
Who owns the format?
Who owns the technology?
Content management systems
Case study 9 Learning from Amazon’s culture of metrics
Summary
Exercises
Self-assessment exercises
Essay and discussion questions
Examination questions
References
Weblinks
Glossary
Index
Preface
Digital media and technology, an opportunity and
threat
Digital marketing has transformed how businesses and other organisations
communicate with their audiences. The 5Ds of digital marketing we
introduce in Chapter 1 (digital devices, digital platforms, digital media,
digital data and digital technology) can be used, alongside traditional
marketing techniques, to get closer to audiences than ever before. Consumers
now have access to a much wider choice of entertainment, products, services
and prices from different suppliers and a more convenient way to select and
purchase items. Organisations have the opportunity to expand into new
markets, offer new services, interact with audiences in new ways and
compete on a more equal footing with larger businesses. Marketers working
within these organisations have the opportunity to develop new skills and to
use these new tools to improve the competitiveness of the company.
At the same time, the Internet and related digital technology platforms give
rise to many threats to organisations. For example, online companies such as
ASOS.com and Zalando (clothing), Amazon.com (books and retail), iTunes
and Spotify (music) and Booking.com and Expedia (travel) have captured a
significant part of their market and struck fear into the existing players. Many
consumers now regularly use social networks such as Facebook, Instagram,
LinkedIn, Snapchat and Twitter as part of their daily lives, with the majority
of access via smartphones. Engaging these consumers is an ongoing
challenge but, as we will see, companies like those above have taken
advantage of these opportunities to interact with customers and this has
helped them develop as worldwide brands.
Management of digital marketing
With the success stories of companies capturing market share following the
rapidly increasing adoption of the Internet by consumers and business buyers,
it is a prerequisite that all organisations must have an effective online
presence to prosper, or possibly even survive! What Michael Porter said in
2001 is still valid today:
The key question is not whether to deploy Internet technology –
companies have no choice if they want to stay competitive – but how to
deploy it.
What are the marketing communications techniques that businesses need to
master to make effective use of digital marketing? The proliferation of new
media channels, digital technologies and interaction options has given a
challenge of understanding, prioritising and managing many new digital
communications techniques. To help summarise these at a top level of the
customer lifecycle or classic marketing funnel, Chaffey (2010) defined the
RACE planning framework shown in Table P.1. RACE planning defines a
structure of 5 × 5 = 25 key digital marketing techniques that need to be
harnessed in most organisations to fully exploit digital marketing to reach,
interact with, convert and engage online audiences across the customer
lifecycle from generating awareness, conversion to sale (online and offline)
and retention and growth of customers. RACE also emphasises the need to
plan to create a coordinated, integrated approach to digital marketing, which
is integrated with other communications activities.
Table P.1 The RACE planning framework for managing key activities for
integrated digital marketing across the customer lifecycle
Plan
Reach
Create a
digital
marketing
strategy or
transformation
plan
1.1 Situation
review
Act
Convert
Engage
Increase
Generate
awareness,
interactions
drive
and leads
website,
mobile and
social media
visits
Achieve sales
online or
offline
Encourage
customer
loyalty and
advocacy
2.1 Media
3.1
effectiveness Customer
4.1
Retargeting
5.1
Customer
(Chapters 2
and 3)
review
(Chapters 8
and 10)
1.2 Set vision 2.2 Search
and
marketing
objectives,
(Chapter 9)
evaluate
(Chapters 4
and 10)
1.3 Strategy
(Chapters 4 –
8)
journey
(Chapter 9)
effectiveness
(Chapter 7)
3.2 Data
profiling
(Chapter 6)
2.3 Earned
3.3 Content
and Owned marketing
media
(Chapter 8)
(Chapters 6 –
9)
onboarding
(Chapters
6 and 7)
4.2
5.2
Personalisation Customer
(Chapter 7)
experience
(Chapter 7)
4.3 Mobile
experiences
(Chapter 7)
5.3
Customer
service
(Chapter 7)
1.4
2.4 Paid
Segmentation media
(Chapters 4
(Chapter 9)
and 6)
3.4 Landing 4.4
pages
Multichannel
(Chapter 9) selling
(Chapter 4)
5.4 Email
marketing
(Chapters
6 and 9)
1.5 Value
Proposition
and Brand
(Chapters 4
and 5)
3.5 Content
strategy and
campaign
plan
(Chapter 8)
5.5 Social
media
marketing
(Chapters
6 and 9)
2.5
Acquisition
plan
(Chapters 8
and 9)
4.5 Conversion
rate
optimisation
(Chapters 7
and 10)
Smart Insights (2010) Introducing RACE: a practical framework to improve your digital marketing.
Blog post by Dave Chaffey, 15 July 2010, smartinsights.com/digital-marketing-strategy/race-apractical-framework-to-improve-your-digital-marketing
The table shows the range of different marketing activities or operating
processes needed to support acquiring new customers through
communicating with them on third-party websites and social media, attracting
them to a company website, mobile app or social network and converting
interest into leads and sales and then using online media to encourage further
purchases and advocacy. You can see that applying social media and content
marketing is a part of RACE that can be deployed to support many activities,
and therefore is one of the key management challenges in digital marketing,
so we consider approaches to managing social media marketing throughout
the text, with a focus in Chapters 6, 8 and 9. Applying digital platforms as
part of multichannel marketing to integrate customer journeys between
traditional and ‘new’ media is also a major challenge and a theme throughout
this text. Management processes related to governance of digital marketing
include planning how digital marketing can be best resourced to contribute to
the organisation and integrating with other marketing activities. The
increased adoption of digital marketing also implies a significant programme
of change that needs to be managed. New objectives need to be set, new
communications strategies developed and staff developed through new
responsibilities and skills.
Digital marketing – new skills required?
The aim of this text is to provide you with a comprehensive guide to the
concepts, techniques and best practice to support all the digital marketing
processes shown in Table P.1. This text (the structure of which is shown in
Figure P.1) is based on emerging academic models together with best
practice from leading adopters of digital media. The practical knowledge
developed through reviewing these concepts and best practice is intended to
enable graduates entering employment and marketing professionals to exploit
the opportunities of digital marketing while minimising the risks.
Figure P.1 Structure of the text
Specifically, this text addresses the following needs:
There is a need to know to what extent digital technology and media
changes existing marketing models and whether new models and
strategies can be applied to exploit the medium effectively.
Marketing practitioners need practical digital marketing skills to market
their products effectively. Knowledge of the new jargon – terms such as
‘marketing automation’, ‘click-through’, ‘cookie’, ‘uniques’ and ‘page
impressions’ – and of effective methods of site design and promotion
such as search engine marketing will be necessary, either for direct
‘hands-on’ development of a site or to enable communication with other
staff or agencies that are implementing and maintaining the site.
Given the rapidly changing market characteristics and best practices of
digital marketing, web-based information sources are needed to update
knowledge regularly. This text and the supporting companion website
contain extensive links to websites to achieve this.
The text assumes some existing knowledge of marketing in the reader,
perhaps developed through experience or by students studying introductory
modules in marketing fundamentals, marketing communications or buyer
behaviour. However, basic concepts of marketing, communications theory,
buyer behaviour and the marketing mix are outlined.
Summary of changes for the seventh edition
The acclaimed structure of previous editions has been retained since this
provides a clear sequence to the stages of strategy development and
implementation that are required to plan successfully for digital marketing in
existing and start-up companies.
The main changes made for the seventh edition, based on feedback from
reviews and our close monitoring of the trends and latest developments are:
An Essential Digital Skills feature has been added near the start of
each chapter that recommends skills required by employers that are
relevant to the chapter and practical ideas to boost employability by
showcasing students’ interests and experiences.
Chapters 10 and 11 have been removed, and examples of B2C and
B2B marketing applications have now been integrated into the context
of relevant chapters.
The ‘5Ds of managing digital marketing’ are introduced in Chapter 1
to help summarise which digital marketing activities businesses need to
manage to exploit the potential of digital marketing.
The main innovations included in the chapters are as follows.
Chapter 1 – Introducing digital marketing
The 5Ds of digital marketing are added at the start to introduce the
elements of digital marketing and customer interactions that need to be
managed.
New Figure 1.1 is a customer lifecycle visual that gives examples of
digital marketing touchpoints across different channels and platforms.
The concept of digital disruption related to technologies such as the
Internet of Things (IoT) and platforms is covered in this chapter.
Chapter 2 – Online marketplace analysis: microenvironment
This chapter is updated to include the latest customer research tools and
sources for students to use in their assignments.
Case studies have been updated to include intelligent home assistants
and multichannel examples.
The consumer behaviour section is updated to include more reference to
social media.
Chapter 3 – The digital macro-environment
This chapter has been simplified and shortened.
A new case study on social media and four new activities are now
included.
Chapter 4 – Digital marketing strategy
The concept and reasons for digital transformation programmes are
explained.
A new section, ‘Digital marketing insight 4.3’, has been added that
covers consumer profiles and digital targeting options.
The mnemonic VQVC has been introduced to test that businesses are
using the right type of goals and measures.
The chapter has been simplified and shortened.
Chapter 5 – Digital media and the marketing mix
New examples have been introduced and the Spotify case study has been
updated.
This chapter has been simplified and updated.
Chapter 6 – Relationship marketing using digital
platforms
In line with reviewers’ comments, this chapter now focuses less on
CRM and more on encouraging audience engagement using interactions
on social media, mobile and marketing automations.
There is an expanded section on strategy and practice for organic social
media for customer loyalty, PR and advocacy, with the section on social
media in Chapter 8 limited to paid social media. Chapter 6 has the main
section on social media in the text as often social media is most effective
for relationship marketing.
The Big Data section has been extended and given more prominence to
explain and give examples of marketing applications of Artificial
Intelligence and Machine Learning.
Chapter 7 – Delivering the digital customer
experience
There is more emphasis on service quality and e-loyalty frameworks.
More coverage has been added on mobile design and the requirements
for mobile apps.
Information is given on how to use content audits, to improve the
effectiveness of content marketing.
There is more on globalisation and localisation.
The options for personalisation are explained through a personalisation
pyramid.
Two new mini cases, for Metro Bank and Jack Wills, have been added.
New technologies are covered, which include IoT and machine
interactions, AR and VR and connected devices.
Chapter 8 – Campaign planning for digital media
The concept of media attribution for reviewing channel impact is
assessed.
The techniques of integration are expanded upon.
This chapter has been simplified and updated.
Chapter 9 – Marketing communications using digital
media channels
The coverage of search engine marketing, influencer marketing and
programmatic advertising is updated to reference latest best practices
and tools – particularly those related to smartphones, e.g. Accelerated
Mobile Pages.
The dated section on Web 2.0 has been deleted and replaced by a section
on approaches to influencer relationship management (IRM).
New social media content and activities include an example of Facebook
viral campaigns.
Chapter 10 – Evaluation and improvement of digital
channel performance
The concept of a marketing technology (martech) stack is explained and
the challenges of selecting martech are explored.
Table P.2 In-depth case studies in Digital Marketing, 7th edition
Chapter
Case study
Themes
1 Digital
eBay thrives in the Business and revenue model,
marketing
global marketplace proposition, competition,
fundamentals
objectives and strategies, risk
management
2 MicroBoo Hoo – learning Assessing a consumer market,
environment from the largest
business models, marketing
European dot-com communications
failure
3 MacroSocial media – do
environment celebrities call the
shots?
Companion vision, branding,
target market, communicating the
proposition, challenges and
reasons for failure
4 Digital
marketing
strategy
ASOS shifts the
Business models, proposition and
focus of high-street online product range, target
retailing
market strategy
5 Digital
marketing
mix
Spotify streaming
develops new
revenue models
6 Relationship Dell gets closer to
marketing
its customers
through its social
media strategy
Peer-to-peer services, revenue
models, proposition design,
strategy, competition, risk factors
Influence of website design on
conversion, retention marketing,
personalisation, e-CRM, RFM
analysis
7 Digital
customer
experience
Refining the online Strategy, proposition, site design,
customer
on-site search capabilities
experience at i-toi.com
8 Campaign
planning
Facebook – a titan
of the digital age
9 Digital
Learning from
channel
Amazon’s culture
performance of metrics
Ad revenue models, privacy
Strategy, measurement, online
marketing communications,
personalisation approach
The structure and content of this text
The text is divided into three parts, each covering a different aspect of how
organisations use the Internet for marketing to help them achieve competitive
advantage. Table P.3 shows how the text is related to established marketing
topics.
Part 1 Digital marketing fundamentals (Chapters 1–
3)
Part 1 relates the use of the Internet to traditional marketing theories and
concepts, and questions the validity of existing models given the differences
between the Internet and other media.
Chapter 1 Introducing Digital marketing considers using the Internet as
part of customer-centric, multichannel marketing; it also reviews the
relationship between Internet marketing, digital marketing, e-commerce
and e-business, and the benefits the Internet can bring to adopters, and
outlines differences from other media and briefly introduces the
technology.
Chapter 2 Online marketplace analysis: micro-environment reviews how
digital media and technology changes the immediate environment of an
organisation, including the marketplace and channel structure. It
describes the type of situation analysis needed to support digital strategy
by examining how customers, competitors and intermediaries, and the
interplay between them, can be evaluated.
Chapter 3 The digital macro-environment reviews the impact of social,
technological, economic, political and legal environmental influences on
digital strategy and its implementation. The emphasis is on privacy and
data protection regulations and managing technology innovation.
Table P.3 Coverage of marketing topics in different chapters
Part 2 Digital marketing strategy development
(Chapters 4–6)
Part 2 describes the emerging models for developing strategy and provides
examples of the approaches companies have used to integrate the Internet
into their marketing strategy.
Chapter 4 Digital marketing strategy considers how the digital strategy
can be aligned with business and marketing strategies and describes a
generic strategic approach with phases of situation review, goal setting,
strategy formulation and resource allocation and monitoring.
Chapter 5 Digital media and the marketing mix assesses how the
different elements of the marketing mix can be varied in the online
environment as part of strategy formulation.
Chapter 6 Relationship marketing using digital platforms details
strategies and tactics for using the Internet to build and sustain ‘one-toone’ relationships with customers.
Part 3 Digital marketing: implementation and
practice (Chapters 7–10)
Part 3 of the text explains practical approaches to implementing a digital
marketing strategy. Techniques for communicating with customers, building
relationships and facilitating electronic commerce are all reviewed in some
detail. Knowledge of these practical techniques is essential for
undergraduates on work placements involving a website, and for marketing
managers who are dealing with suppliers such as design agencies.
Chapter 7 Delivering the digital customer experience explains how an
online presence is developed to support branding and customer service
quality objectives. The stages analysis of customer needs, design of the
site structure and layout and creating the site are covered, together with
key techniques such as user-centred design, usability and accessibility
design. It also covers different service quality models used to assess
experience.
Chapter 8 Campaign planning for digital media describes the novel
characteristics of digital media, and then considers different aspects of
marketing communications that are important for developing a
successful online campaign.
Chapter 9 Marketing communications using digital media channels
covers techniques such as banner advertising, affiliate networks,
promotion in search engines, co-branding and sponsorship, email, online
PR, viral and word-of-mouth marketing with particular reference to
social networks.
Chapter 10 Evaluation and improvement of digital channel performance
reviews methods for assessing and improving the effectiveness of a site,
and communications in delivering business and marketing benefits. The
chapter briefly covers process and tools for updating sites.
Who should use this text?
Students
This text has been created primarily as the main student text for
undergraduate and postgraduate students taking specialist marketing courses
or modules that cover e-marketing, Internet and digital marketing, electronic
commerce and e-business. The text is relevant to students who are:
undergraduates on business programmes that include modules on the
use of the Internet and e-commerce, including specialist degrees such as
Internet marketing, electronic commerce, marketing, tourism and
accounting or general business degrees such as business studies,
business administration and business management;
undergraduate project students who select this topic for final-year
projects or dissertations – this text is an excellent supporting text for
these students;
undergraduates completing a work placement in a company using the
Internet to promote its products;
students at college aiming for vocational qualifications, such as an HNC
or HND in Business Management or Computer Studies;
postgraduate students taking specialist master’s degrees in electronic
commerce or Internet marketing, generic MBAs and courses leading to
qualifications such as the Certificate in Management or Diploma in
Digital Marketing or Management Studies that involve modules on
electronic commerce and digital marketing.
Practitioners
Previous editions have been widely used by digital marketing practitioners
including:
marketing managers or specialists such as e-commerce managers or
digital marketing managers responsible for defining digital marketing
strategy and implementing and maintaining the company website;
senior managers and directors wishing to understand the potential of
digital marketing for a company and who need practical guidelines on
how to exploit this potential;
technical project managers or webmasters who may understand the
technical details of building a site, but have a limited knowledge of
marketing fundamentals and how to develop an Internet marketing
strategy.
What does the text offer to lecturers teaching these
courses?
The text is intended to be a comprehensive guide to all aspects of using the
Internet and other digital media to support marketing. The text builds on
existing marketing theories and concepts, and questions the validity of
models in the light of the differences between the Internet and other media.
The text references the emerging body of literature specific to Internet
marketing. It can therefore be used across several modules. Lecturers will
find the text has a good range of case studies, activities and exercises to
support their teaching. Website links are given in the text and at the end of
each chapter to provide important information sources for particular topics.
Student learning features
A range of features has been incorporated into this text to help the reader get
the most out of it. Each feature has been designed to assist understanding,
reinforce learning and help readers find information easily, particularly when
completing assignments and preparing for exams. The features are described
in the order in which you will find them in each chapter.
At the start of each chapter
The ‘Chapter at a glance’ page provides easy navigation for each chapter. It
contains:
Main topics: the main topics and their page numbers.
Case studies: the main cases and their page numbers.
Learning objectives: a list describing what readers can learn through
reading the chapter and completing the exercises.
Questions for marketers: explaining the relevance of the chapter for
practitioners.
Links to other chapters: a summary of related information in other
chapters.
In each chapter
Definitions: when significant terms are first introduced in the main text,
there are succinct definitions of these terms in the margin for easy
reference.
Web references: where appropriate, web addresses are given to enable
readers to obtain further information. They are provided in the main text
where they are directly relevant as well as at the end of the chapter.
Essential digital skills: practical ideas to boost employability by
showcasing students’ interests and experiences.
Case studies: real-world examples of how companies are using the
Internet for marketing. Questions at the end of each case study are
intended to highlight the main learning points from the example.
Mini case studies: short features that give a more detailed example, or
explanation, than is practical in the main text. They do not contain
supplementary questions.
Activities: exercises that give readers the opportunity to practise and
apply the techniques described in the main text.
Chapter summaries: intended as revision aids to summarise the main
learning points from the chapter.
At the end of each chapter
Self-assessment exercises: short questions that will test understanding
of terms and concepts described in the chapter.
Essay questions: conventional essay questions.
Discussion questions: these require longer essay-style answers
discussing themes from the chapter. They can be used either as topics
for individual essays or as the basis for seminar discussion.
Examination questions: typical short-answer questions of the type that
are encountered in exams. These can also be used for revision.
References: these are references to books, articles or papers referred to
within the chapter.
Weblinks: these are significant sites that provide further information on
the concepts and topics of the chapter. This list does not repeat all the
website references given within the chapter, such as, for example,
company sites. For clarity, the website address prefix ‘ is
generally omitted.
At the end of the text
Glossary: comprehensive definitions of all key terms and phrases used
within the main text.
Index: all key words and abbreviations referred to in the main text.
Support material
Free supplementary materials are available at Dave Chaffey’s website at
www.smartinsights.com/book-support to support all users of the text. This
regularly updated website contains advice, comment, support materials and
hyperlinks to reference sites relevant to the text. A companion website is also
available for students and lecturers from the publisher at
catalogue.pearsoned.co.uk/. There is: a password-protected area for lecturers
only to discuss issues arising from using the text; additional examination-type
questions and answers; a multiple-choice question bank with answers;
additional cases with suggestions for discussion; and a downloadable version
of the Lecturer’s Guide and OHP Masters.
Lecturers can also download an Instructor’s Manual and supporting
PowerPoint slides by going to www.pearsoned.co.uk/chaffey.
References
Smart Insights (2010) Introducing RACE: a practical framework to improve
your digital marketing. Blog post by Dave Chaffey, 15 July 2010,
smartinsights.com/digital-marketing-strategy/race-a-practicalframework-to-improve-your-digital-marketing.
Porter, M. (2001) ‘Strategy and the Internet’, Harvard Business Review
(March), 62–78.
About the authors
Dave Chaffey BSc, PhD, FCIM, FIDM
Dave is co-founder of Smart Insights (www.smartinsights.com), an online
publisher and consultancy providing advice and alerts on best practice and
industry developments for marketers, digital marketers and e-commerce
managers. The advice is also created to help readers of Dave’s books. The
most relevant information is highlighted at www.smartinsights.com/booksupport.
Dave also works as an independent digital marketing trainer and consultant.
He has consulted on digital marketing and e-commerce strategy for
companies of a range of sizes from larger organisations such as 3M,
Barclaycard, HSBC, Mercedes-Benz, Nokia and The North Face to smaller
organisations such as Arco, Confused.com, Euroffice, Hornbill and i-to-i.
Dave’s passion is educating students and marketers about latest and best
practices in digital marketing, thus empowering businesses to improve their
online performance through getting the most value from their web analytics
and market insight. In other words, making the most of online opportunities
and avoiding waste.
He is proud to have been recognised by the Department of Trade and Industry
as one of the leading individuals who have provided input and influence on
the development and growth of e-commerce and the Internet in the UK over
the last ten years. Dave has also been recognised by the Chartered Institute of
Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape
the future of marketing. He is also proud to be an Honorary Fellow of the
Chartered Institute of Marketing and Institute of Direct and Digital
Marketing.
Dave has been a visiting lecturer on e-commerce courses at different
universities including Birmingham, Cranfield, Derby, Manchester
Metropolitan and Warwick Universities.
In total, Dave is author of five best-selling business books including Digital
Business and Ecommerce Management, Digital Marketing: Strategy,
Implementation and Practice, eMarketing eXcellence (with P.R. Smith) and
Total Email Marketing. Many of these books have been published in new
editions since 2000 and translations include Chinese, Dutch, German, Italian
and Serbian.
When offline, Dave enjoys fell-running, indie guitar music and travelling
with his family.
Fiona Ellis-Chadwick PhD, BSc, PGCE
Fiona Ellis-Chadwick has a successful professional business and academic
career. She had a successful commercial career in retail management before
becoming an academic in 1998 and completing her PhD in 2000. Since then
she has been working on projects aiming to advance research in the fields of
digital marketing; online retail management and the digital high street. She is
currently working with central, regional and local government authorities and
leading technology and retail organisations on projects that aim to ensure the
future sustainability of UK high streets.
Additionally, as part of her academic career, Fiona is a very active researcher
and innovator who frequently leads the development of thought-provoking
multi-media teaching materials, bringing together her knowledge of research
and business. Fiona’s work has been widely published in national and
international journals, including Journal of Business Research, European
Journal of Marketing, International Journal of Retail Distribution and
Management, Internet Research, Journal of Retailing and Consumer
Services.
Fiona is passionate about business research and education and creating value
for society, having started her working career as a young entrepreneur
building a retail business. She believes bringing management research to life
is very important, especially in her current role as Director of Impact at The
School of Business & Economics, Loughborough University.
Academic profile:
LinkedIn:
Acknowledgements
I am fortunate to have shared my journey of understanding how best to use
digital marketing with thousands of students and marketing professionals and
I thank you for sharing your experiences with me. I’d particularly like to
thank all the practitioners who have shared their experiences on applying
digital marketing in the opening case study interviews in each chapter and on
SmartInsights.com.
Likewise, I appreciate the effort made by the digital marketing specialists
who have shared their knowledge as expert commentators on Smart Insights,
including Mike Berry and Richard Sedley (marketing strategy), Dan Barker,
Ben Jesson and Pritesh Patel (analytics), Dan Bosomworth, Paul Fennemore,
Katy Howell and Marie Page (social media marketing), Rene Power (B2B
marketing), Rob Thurner (mobile marketing), Chris Soames, James Gurd and
John Newton (search marketing), Mel Henson (copywriting), Paul Rouke
(usability) and Mark Brownlow, Kath Pay and Tim Watson (email
marketing). Also to the many occasional contributors who have shared their
expertise and experiences.
The authors would like to thank the team at Pearson Education in Harlow for
their help in the creation of this text, especially Tom Hill, Eileen Srebernik
(our acquisitions editors) and Andrew Muller who managed the text through
the production process.
As always, special thanks go to my family for supporting me in the ongoing
updates.
Dave Chaffey
Publisher’s Acknowledgements
xiv, 27, 249, 260, 374, 376, 385, 399, 426, 471 Smart Insights: With
permission from digital marketing advice learning platform
SmartInsights.com. 15, 28 Taylor & Francis: Chaffey, D. and Smith, P.R.
(2017) Digital Marketing Excellence, Planning, Optimising and integrating
digital marketing, 5th edition, © 2017. Used by permission of Taylor &
Francis. 23 Altimeter Group: Altimeter, a Prophet company. 147 Taylor &
Francis: Chaffey, D. and Smith, P.R. (2012) Emarketing Excellence,
Planning and optimising your digital marketing, 4th edition, © 2012. Used by
permission of Taylor & Francis. 30 Harvard Business School Publishing:
Deighton, J., The future of interactive marketing, Harvard Business Review (November–December), 151–62, © 1996, Harvard Business School
Publishing. 37 Smart Insights: With permission from digital marketing
advice learning platform SmartInsights.com. 38 Adestra: Improving
Engagement 2018. Retrieved from
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metric: engagement, 8 August, © 2007, Forrester. 39 eBay Inc: ebay’s 2016
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audience-focused marketing, © 2017, A report researched and compiled by
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Economic & Labour Review, December 2010, Office for National
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except where otherwise stated. 64 John Wiley & Sons Ltd (UK): Rose, S.
and Hair, N.C., © 2011, Online customer experience: a reveiw of the
business-toconsumer online purchase context, International Journal of
Management Reviews, 13 (1), 24–39. Reproduced with permission of John
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Part 1
Digital marketing fundamentals
Chapter 1 introduces the opportunities and challenges of digital marketing
and explains the different types of digital marketing platforms and media
channels available to engage audiences online. It also introduces a planning
framework that can be used to structure digital marketing strategies and case
studies. Chapters 2 and 3 provide a foundation for developing an integrated
digital marketing strategy by reviewing how the online marketplace of an
organisation can be assessed as part of situation analysis.
1 Introducing digital marketing
• Introduction – how has digital marketing transformed marketing?
• Definitions – what are digital marketing and multichannel
marketing?
• Introduction to digital marketing strategy
• Introduction to digital marketing communications
2 Online marketplace analysis: micro-environment
• Situation analysis for digital marketing
• The digital marketing environment
• Understanding how customers interact with digital markets
• Consumer choice and digital influence
• Customer characteristics
• Competitors
• Suppliers
• New channel structures
• Digital business models for e-commerce
3 The digital macro-environment
• The rate of environment change
• Technological forces
• Economic forces
• Political forces
• Legal forces
• Social forces
Chapter 1
Introducing digital marketing
Chapter at a glance
Main topics
Introduction – how has digital marketing transformed marketing?
Definitions – what are digital marketing and multichannel marketing?
Introduction to digital marketing strategy
Introduction to digital marketing communications
Case study
Case study 1: eBay thrives in the global marketplace
Learning objectives
After reading this chapter, you should be able to:
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 for
digital marketing and traditional marketing.
Questions for marketers
Key questions for marketing managers related to this chapter are:
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?
Links to other chapters
This chapter provides an introduction to digital marketing, and the concepts
introduced are covered in more detail later in the book, as follows:
Chapters 2 and 3 explain marketplace analysis for digital marketing
planning and managing consumer concerns such as privacy.
Chapters 4, 5 and 6 in Part 2 describe how digital marketing strategy can
be developed.
Chapters 7, 8 and 10 in Part 3 describe strategy implementation.
Introduction – how has digital marketing
transformed marketing?
Digital media and technology are no longer new – indeed, it’s now more than
25 years since Sir Tim Berners Lee created the World Wide Web. Yet, over
this time we have seen huge developments in digital media and marketing
technology to provide new ways for businesses to communicate across the
customer lifecycle. Over 3 billion people around the world now regularly use
online services to find products, entertainment, friends and romance, and
consumer behaviour and the way companies market to both consumers and
businesses have changed dramatically.
To understand the importance of digital marketing to the future of marketing
in general, it’s helpful to think about what audience interactions we need to
understand and manage. 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’, for which we
need to assess consumer adoption and how our business can manage them to
support marketing goals:
Digital devices. Our audiences interact with businesses using a
combination of smartphones, tablets, laptops, desktop computers, TVs,
gaming devices, virtual assistants (like Amazon Echo) and other
connected devices forming the Internet of Things (IoT) (see Chapter
7).
Digital platforms. Most interactions on these devices are through a
browser or apps from the major ‘platforms’ or online services, e.g.
Facebook™ (and Instagram™), Google™ (and YouTube™), Twitter™,
LinkedIn™, Apple™, Amazon™ and Microsoft™.
Digital media. Different communications channels for reaching and
engaging audiences are available, including advertising, email and
messaging, search engines and social networks, which we’ll introduce in
this chapter.
Digital data. The insight businesses collect about their audience profiles
and their interactions with businesses now needs to be protected by law
in most countries.
Digital technology. This is the marketing technology – or martech (see
Chapter 10 for a categorisation) – that businesses use to create
interactive experiences from websites and mobile apps to in-store kiosks
and email campaigns.
Internet of Things (IoT)
A system of devices, software, objects, people or animals with unique identifiers that can
transfer data over a network via machine-to-machine (M2M) interactions without human
interaction.
Figure 1.1, which outlines the customer lifecycle, shows the practical
opportunities and challenges of managing digital marketing today. It shows
some of the many ways available to communicate with prospects and
customers across different touchpoints in the customer lifecycle, which we
will introduce in this chapter and explain later in the book. It shows the
importance of integrating communications, including paid, owned and earned
media integrating with a web, mobile, email or in-store based experience.
Within each of these activities there are many options for reaching and
targeting audiences – for example, within social media there are paid and
organic options across all the seven main social networks (Facebook,
Instagram, LinkedIn, Snapchat™, Pinterest™, Twitter and YouTube).
The growth in digital communications is put into context by this trend
analysis from Cisco (2017), showing how in the early days of the global
Internet, traffic in a day was less than 100 Gigabytes (Gb), which today is the
storage capacity of a smartphone:
1992: 100 GB per day
1997: 100 GB per hour
2002: 100 GB per second
2007: 2,000 GB per second
2016: 26,600 GB per second
2021: 105,800 GB per second.
Figure 1.1 Customer lifecycle marketing touchpoint summary for a retailer
Source: Smart Insights (2017)
How will this book help me?
To succeed in the future, organisations will need marketers, strategists and
agencies with up-to-date knowledge of how to integrate each of these ‘5Ds of
digital’ into their marketing communications with their audience and develop
new strategies to compete. They also need to address socio-cultural consumer
concerns including threats to their privacy, which are explored in Activity
1.1.
The aim of Digital Marketing is to support students and professionals in
gaining and developing this knowledge. In this text, we will show how
traditional marketing models and concepts can be applied to help develop
digital marketing strategies and plans and where new models are appropriate.
We will also give many practical examples and best practices for applying the
‘5Ds’ to effectively market an organisation’s products and services using the
Internet and other digital media.
The challenge for marketers is to assess which innovations or digital
disruptors are most relevant to their organisation and to seek to gain
advantage through introducing them to a company such that the digital
marketing techniques integrate effectively with traditional marketing
communications.
This text will take you through the questions to ask and potential solutions
step by step to enable you to develop appropriate strategies. In this
introductory chapter, after an initial scoping of digital marketing, we review
two main aspects of managing digital marketing. In the first part of this
chapter, we review the main strategic challenges and opportunities of digital
marketing that must be managed by organisations. We then go on to
introduce the communications techniques for promoting companies online
through digital technology platforms such as desktop, tablet and smartphone
devices (for example, search engine marketing (SEM), and social media and
display advertising) using the unique characteristics of digital media.
Digital disruptors
Digital disruptors are innovations in digital media, data and marketing
technology which enable a change to a new basis for competition in a market
or across markets. Disruptors are also used to refer to startup or existing
companies that, through their agility, are good examples of impacting
competitors through disruption.
Activity 1.1: Balancing the growth in digital
platforms against socio-cultural customer
concerns
Purpose
To introduce some of the most important platforms used for digital marketing today; to
illustrate innovation in online business models and communications approaches that
need to be balanced against consumer concerns. Table 1.1 shows the online brands that
we believe have had the biggest influence on digital business models in the US and
Europe.
Questions
1. Think about the innovations you have witnessed during the time you have used
digital platforms. Which are the main sites used in your country that have changed
the way you spend your time online?
2. What success factors and business models do these online brands share in common?
3. Which socio-cultural issues may concern consumers and require government
legislation given the dominance of some of these platforms?
Table 1.1 Timeline of online services that have acted as digital disruptors due
to innovation in business model or marketing communications approach
Year founded
Company/service Category of innovation
1994
Amazon
Retailer
1995 (March)
Yahoo!™
Directory and portal
1995 (September) eBay™
Online auction
1995 (December) AltaVista™
Search engine
1996
Hotmail™
Web-based email
Viral marketing (using email
signatures to promote service)
Purchased by Microsoft in 1997
1998
GoTo.Com
Overture™
First pay-per-click search
marketing
Purchased by Yahoo! in 2003
1998
Google
Search engine
1999
Blogger™
Blog publishing platform
Purchased by Google in 2003
1999
Alibaba™
B2B marketplace with $1.7
billion IPO on Hong Kong stock
exchange in 2007
1999
MySpace™
Social network
Purchased by News Corp in 2005
2001
Wikipedia™
Open encyclopedia
2003
Skype™
Peer-to-peer Internet telephony
VOIP – Voice Over Internet
Protocol.
Purchased by eBay and then
Microsoft.
2003
Second Life®
Immersive virtual world
2003
LinkedIn
Professional social network.
Purchased by Microsoft.
2004
Facebook
Social network which owns other
social networks and messaging
apps including Instagram and
WhatsApp.
2005
YouTube
Video sharing and rating
2006
PayPal™
Paypal offers first mobile
payment service
2007
iPhone® iOS and Apple launches the iPhone using
Android™
the iOS operating system. In the
same year Google unveiled its
Android mobile operating system
2009
Airbnb™
An online marketplace enabling
property owners to rent out their
houses to consumers
2010
Uber™
Transportation and logistics
company known for its taxi
service, which operates in many
major cities worldwide
2011
Snapchat
A mobile photo messaging
service where images are deleted
after a set number of seconds
2013
Apple iBeacon™ iBeacon uses low-energy
and CloudTags
Bluetooth to notify shoppers of
items of interest. Cloudtags gives
shoppers in-depth information
about products via tablets
2017
New connected
devices
Google launched its Home voicecontrolled devices joining
Amazon Echo, Apple HomeKit
devices and Microsoft Homehub
The Future
Digital
innovations and
business
propositions
Innovation drives the digital
economy and is set to continue
into the future. Digital has
become mainstream and although
there are opportunities, displacing
existing global incumbent
platforms will be rare. For the
latest developments see:
www.thenextweb.com
For the authors of this text, digital marketing is an exciting area to be
involved with, since it poses many new opportunities and challenges yearly,
monthly and even daily. Innovation is a given, with the continuous
introduction of new technologies, new business models and new
communications approaches. Complete Activity 1.1 or look at Table 1.1 to
see other examples of online startups showing the rate at which new
innovations occur.
Definitions – what are digital marketing and
multichannel marketing?
The use of digital media, data and technology to support marketing activities
has given rise to a bewildering range of labels and jargon created by both
academics and professionals. It has been called digital marketing, Internet
marketing, e-marketing and web marketing. For the fifth edition we changed
the title of this text from Internet Marketing to Digital Marketing since it
shows the use of a range of digital platforms to interact with audiences. Of
course, what is important within a company is not the term, but the activities
that comprise digital marketing, which must be prioritised according to their
relevance to the business. So, in this chapter we focus on introducing these
different digital marketing activities.
Digital media
Communications are facilitated through content and interactive services delivered by
different digital technology platforms including the Internet, web, mobile phone, TV and
digital signage.
Digital marketing can be simply defined as:
Achieving marketing objectives through applying digital media, data
and technology.
Digital marketing
The application of digital media, data and technology integrated with traditional
communications to achieve marketing objectives.
This succinct definition helps remind us that it is the results delivered by
technology that should determine investment in digital marketing, not the
adoption of the technology!
In practice, digital marketing focuses on managing different forms of online
company presence, such as company websites, mobile apps and social
media company pages, integrated with online communications techniques
introduced later in this chapter, including search engine marketing, social
media marketing, online advertising, email marketing and partnership
arrangements with other websites. These techniques are used to support the
objectives of acquiring new customers and providing services to existing
customers that help develop the customer relationship through customer
relationship management (CRM). However, for digital marketing to be
successful there is still a need for integration of these techniques with
traditional media such as print, TV, direct mail and human sales and support
as part of multichannel marketing communications. Mini case study 1.1 gives
an example of integration between a mobile app and traditional media.
Online company presence
Different forms of online media controlled by a company including their website, blogs,
email list and social media presences. Today, commonly known as ‘owned media’.
Customer relationship management (CRM)
Using digital communications technologies to maximise sales to existing customers and
encourage continued usage of online services through techniques including a database,
personalised web messaging, customer services, chatbots, email and social media
marketing.
Mini case study 1.1: New Look creates
augmented reality mobile app to enable
interactions with new styles and offers
New Look’s UAE team launched an augmented reality (AR) campaign that encouraged
users to scan their New Look Student Card to reveal special offers and interactive
features. This included being able to ‘create their own look’ by mixing and matching New
Look products on their mobiles. With social integration built in, the fashion retailer
created a buzz around their offering while also capturing a range of contextual data that
was fed back into subsequent campaign activity. We explore the options for creating
mobile websites and apps in Chapter 7.
The role of digital platforms in supporting integrated multichannel
(omnichannel) marketing is a recurring theme in this text, and in Chapter 2
we explore its role in supporting different customer journeys through
alternative communications and distribution channels. Online channels can
also be managed to support the whole buying process from pre-sale to sale to
post-sale and further development of customer relationships.
Multichannel (omnichannel) marketing
Customer communications and product distribution are supported by a combination of
digital and traditional channels at different points in the buying cycle or ‘path to
purchase’. With the range of mobile and IoT touchpoin…
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