Digital Marketing Digital Marketing Dr. Robin Teigland Dr. Robin Teigland Stockholm School of Economics Stockholm School of Economics [email protected][email protected]www.knowledgenetworking.org www.knowledgenetworking.org www.slideshare.net/eteigland www.slideshare.net/eteigland
Presentation for an introductory course on digital marketing for the Marketing II course at the Stockholm School of Economics
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Digital MarketingDigital Marketing
Dr. Robin TeiglandDr. Robin TeiglandStockholm School of EconomicsStockholm School of Economics
Background to digital marketingBackground to digital marketingReshaping the marketing mix Reshaping the marketing mix – 4Ps– 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital marketingBenefits and challenges of digital marketingGuest speaker – Marketing by MySpace Guest speaker – Marketing by MySpace
What is digital marketing?What is digital marketing?
The application of digital technologies that form channels to The application of digital technologies that form channels to marketmarket……− Internet (2D to 3D)Internet (2D to 3D)− Mobile communicationsMobile communications− Interactive television Interactive television − Interactive traditional media (billboards, print)Interactive traditional media (billboards, print)− Wireless Wireless
……....to achieve corporate goals through meeting and to achieve corporate goals through meeting and exceeding customer needs exceeding customer needs better than the competitionbetter than the competition..
Background to digital marketingBackground to digital marketingReshaping the marketing mix – 4PsReshaping the marketing mix – 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpace Guest speaker – Marketing by MySpace
Interactive ads in traditional print mediaInteractive ads in traditional print media− Augmented reality, mobile phonesAugmented reality, mobile phones− http://www.youtube.com/watch?v=RsZTbIjLHNA&feature=relatedhttp://www.youtube.com/watch?v=RsZTbIjLHNA&feature=related (zoo) (zoo)− http://www.youtube.com/watch?v=S-G8u-01t0k&feature=PlayList&p=46ED12AC63B128FC&playnext=1&playnext_from=PL&index=1http://www.youtube.com/watch?v=S-G8u-01t0k&feature=PlayList&p=46ED12AC63B128FC&playnext=1&playnext_from=PL&index=1
(car) (car)
Interactive billboardsInteractive billboards− Video, mobile phonesVideo, mobile phones− http://www.youtube.com/watch?v=BK7qfpvod2w&feature=relatedhttp://www.youtube.com/watch?v=BK7qfpvod2w&feature=related (Shanghai) (Shanghai)− http://www.youtube.com/watch?v=5-bNZRAypgQ&feature=PlayList&p=CDD9F931D4215694&playnext=1&playnext_from=PL&index=1http://www.youtube.com/watch?v=5-bNZRAypgQ&feature=PlayList&p=CDD9F931D4215694&playnext=1&playnext_from=PL&index=1
(Nokia) (Nokia)
Interactive video advertisementsInteractive video advertisements− Video, internetVideo, internet− http://www.youtube.com/watch?v=tJrq-ZwBehA&feature=PlayList&p=B74C1DB8C72A381E&index=4http://www.youtube.com/watch?v=tJrq-ZwBehA&feature=PlayList&p=B74C1DB8C72A381E&index=4
Viral marketingViral marketing Encourages users of product or service supplied Encourages users of product or service supplied
by business to encourage friends to join in as by business to encourage friends to join in as wellwell
Haag & Cummings 2008Haag & Cummings 2008
www.bluemountain.comwww.bluemountain.com1) Send card1) Send card2) Card has link so other 2) Card has link so other person can send card person can send card
Background to digital marketingBackground to digital marketingReshaping the marketing mix Reshaping the marketing mix – 4Ps– 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpaceGuest speaker – Marketing by MySpace
− Permeable organizational boundariesPermeable organizational boundaries− Redefinition of acceptable sources of value and Redefinition of acceptable sources of value and
knowledgeknowledge Potential sources of valuePotential sources of value
− Users as organizational resource Users as organizational resource (von Hippel 1988, (von Hippel 1988, 2005)2005)
− User interactions with organizations creates value User interactions with organizations creates value through user-generated content through user-generated content (Di Gangi & Wasko (Di Gangi & Wasko forthcoming)forthcoming)
Rapid growth of UGC Web SitesRapid growth of UGC Web Sites
Organizations increasingly introducing UGC websites Organizations increasingly introducing UGC websites (e.g., social networking, electronic communities) as (e.g., social networking, electronic communities) as
•#1 open source content management software#1 open source content management software•Enterprise open source – “Grow the cake”Enterprise open source – “Grow the cake”•60 Employees in 8 countries (Europe & Asia)60 Employees in 8 countries (Europe & Asia)•230+ Partners230+ Partners•5000+ Customers5000+ Customers•30,000+ Community members30,000+ Community members
Background to digital marketingBackground to digital marketingReshaping the marketing mixReshaping the marketing mixFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpace Guest speaker – Marketing by MySpace
Within five years, the Within five years, the 3-D 3-D Internet wil l be as Internet wil l be as
importantimportant for work as the for work as the Web is today.Web is today. January 2008January 2008
By the end of 2011, By the end of 2011, 80 percent 80 percent of active Internet users (and of active Internet users (and Fortune 500 enterprises)Fortune 500 enterprises) will will
have a “second life”, but not have a “second life”, but not necessarily in Second Life.necessarily in Second Life.Steve PrenticeSteve Prentice
HSB: Building the house of the futureHSB: Building the house of the futurein a competition with KTH and Chalmers in a competition with KTH and Chalmers
Entropia Universe by MindArkEntropia Universe by MindArk
Ability to develop skills and sell virtual goodsAbility to develop skills and sell virtual goods− Island sold for USD 26,500 in 2004Island sold for USD 26,500 in 2004− Asteroid space resort sold for USD 100,000 in 2005Asteroid space resort sold for USD 100,000 in 2005− Clothes Against Violence – limited edition virtual jackets sold Clothes Against Violence – limited edition virtual jackets sold
for more than same model of real world jacketsfor more than same model of real world jackets Virtual universe with real cash economyVirtual universe with real cash economy
− Fixed exchange rate to US Dollar, 1 USD = 10 PEDFixed exchange rate to US Dollar, 1 USD = 10 PED− Five banks auctioned for USD 404,000 in 2007Five banks auctioned for USD 404,000 in 2007− Real l i fe bank l icense granted by Swedish Real l i fe bank l icense granted by Swedish
Government to MindArk Bank in March 2009Government to MindArk Bank in March 2009 A business model like the real worldA business model like the real world
− Raw materials and skills needed to buildRaw materials and skills needed to build− Goods deteriorate and need to be replenishedGoods deteriorate and need to be replenished
China is making big efforts in virtual worlds!China is making big efforts in virtual worlds!
•““Virtual economy district – a Virtual economy district – a world where millions will work, world where millions will work, communicate, and be in love”communicate, and be in love”
•Reaching out to the 150 mln Reaching out to the 150 mln overseas Chineseoverseas Chinese
•7 million inworld at same time7 million inworld at same time
•Ability to borrow money to Ability to borrow money to finance operations through finance operations through
Mind BankMind Bankwww.crd.gov.cn, www.foreignpolicy.com
“The real China is only a piece of land. We believe that there must be a China in the virtual
world and the real world.”Robert Lai, Chief Scientist, CRD
Background to digital marketingBackground to digital marketingReshaping the marketing mix – 4PsReshaping the marketing mix – 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpace Guest speaker – Marketing by MySpace
Today’s discussionToday’s discussion
Reshaping the marketing mixReshaping the marketing mix
Background to digital marketingBackground to digital marketingReshaping the marketing mix – 4PsReshaping the marketing mix – 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing implementationDigital marketing implementationBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpace Guest speaker – Marketing by MySpace
New market opportunitiesNew market opportunities Technological desertsTechnological desertsMarketing research Marketing research opportunitiesopportunities
The 5 I’s of digital marketingThe 5 I’s of digital marketing Identification – customer specificsIdentification – customer specifics
Individualism – tailored for lifetime purchasesIndividualism – tailored for lifetime purchases
Interaction – dialogue to learn about customers’ Interaction – dialogue to learn about customers’ needsneeds
Integration – of knowledge of customers Integration – of knowledge of customers throughout companythroughout company
Integrity – develop trust through non-intrusive Integrity – develop trust through non-intrusive marketing such as permission marketingmarketing such as permission marketing
Peppers & Roger 1997Peppers & Roger 1997
Will it replace the Will it replace the traditional marketing mix?traditional marketing mix?
Sources and acknowledgementsSources and acknowledgements− Allen, JP, Allen, JP, https://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdfhttps://usffiles.usfca.edu:443/FacStaff/jpallen/www/5thingswithcustomersv3.pdf
(Accessed 24 April 2009).(Accessed 24 April 2009).− Chaffey, D. 2009. Chaffey, D. 2009. Benchmarking to improve your digital marketing strategy, Benchmarking to improve your digital marketing strategy,
www.davechaffey.com/blog/www.davechaffey.com/blog/..− Deloitte, 2008. 2008 Deloitte, 2008. 2008 Tribalization of Business Study. Tribalization of Business Study. − DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.− Di Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring Engagement Di Gangi, P. 2008, The Content Web Sites, Co-Creation of Value: Exploring Engagement
Behaviors in User-generated Content Web Sites, Colloquium at Florida State University Behaviors in User-generated Content Web Sites, Colloquium at Florida State University College of BusinessCollege of Business
− Gurteen, D. Online Information 2007: KM goes Social, Gurteen, D. Online Information 2007: KM goes Social, http://www.slideshare.net/dgurteen/km-goes-social-194717http://www.slideshare.net/dgurteen/km-goes-social-194717
− Haag & Cummings, 2008. Information Systems Essentials, McGraw-Hill/Irvine.− Jobber, 2007. Principles & Practices of Marketing, Fifth Edition, McGraw-Hill.− Poole, IBM: Web 2.0 goes to work, http://www.slideshare.net/jward5519/ibm-web-2-0-Poole, IBM: Web 2.0 goes to work, http://www.slideshare.net/jward5519/ibm-web-2-0-
goes-to-work-presentationgoes-to-work-presentation− Wesch, M. http://www.youtube.com/watch?v=TPAO-Wesch, M. http://www.youtube.com/watch?v=TPAO-
Acknowledgements− Allen, JP, University of San Francisco− Mahaley, S., Duke Corporate Education− Fuller, R., Goh, S., Wasko, M., Florida State University, College of Business
Background to digital marketingBackground to digital marketingReshaping the marketing mix – 4PsReshaping the marketing mix – 4PsFrom OGC to UGCFrom OGC to UGCStepping into the internet – A look at VWsStepping into the internet – A look at VWsDigital marketing planningDigital marketing planningBenefits and challenges of digital Benefits and challenges of digital
marketingmarketingGuest speaker – Marketing by MySpaceGuest speaker – Marketing by MySpace