DM Lecture 2

Digital marketing #DM

2

implications and planning

management

SOSTAC® planning model…

1

2

3

4

5

6

situation

objectivesstrategytactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

marketing

the macro environment

the micro environment

strategysystems

functionsresources

suppliers

other stakeholders

intermediaries

competitors

customers

political forces

social cultural forces

technological forces

economic forces

environmental forces

legal forces

environments

the internal environment

context analysis...

external (macro) context…

present organisations with opportunities and threatspolitical

economic

social

technological

environmental

legal

PESTEL analysis…Your Notes PESTEL

FactorsPotential Impact

Implications & Importance

About your organisation & how the factors might impact on marketingfor your organisation/SBU

PoliticalEconomicSocialTechnologicalEnvironmentalLegal

H = HighM = MediumL = LowU = Undecided

Time Frame:ShortMediumLong

Type:Opportunity orThreat

Implication:IncreasingReducingNot yet determined

Relative ImportanceH = HighM = MediumL = Low

customer analysis...

segment characteristics

decision-making process

involvement

perceived risks

awareness, perception and attitude

influence

media consumption and use

investment priorities, objectives & goals

market importance & commitment

relative strengths & weaknesses

competitors - now? 5 years on?

weaknesses making them vulnerable

changes likely in future strategies

‘7 step competitor analysis drill’

effect on industry, market & you

Davidson, 1997

Internal analysis...

strengths and weaknesses

linked to use and availability of resources…

and analysis of current digital activity…

TOWS Analysis

Strengths Weaknesses

Opportunities“Maxi-Maxi” Strategies

Strengths used to maximise opportunities

“Mini-Maxi” Strategies

Minimise weaknesses by taking advantage of

opportunities

Threats“Maxi-Mini” Strategies

Strengths used to minimise threats

“Mini - Mini” Strategies

Minimise weaknesses and avoid threats

Weihrich, 1982

digital objectives...

avoid solely focusing on sales

help to determine/clarify position

help highlight the balance of tactics needed

provide a time frame

provide a means of evaluation and measurement

SMART

the 5S’s...sell… grow your sales

speak… dialogue, participation and engagement

serve… add value

save… costs

sizzle… take your brand online

Smith, 2000

strategy… Segmentation

…can use ‘classic’ bases and variables for B2C and B2B

…often developed further as persona’s

…web/online/customer persona’s

targeting...

three key approaches…

undifferentiated

differentiated

concentrated

positioning…

products can be positioned in the market by focusing on specific factors such as…

features, benefits or advantages

solutions presented

specific usage (occasions)

positioned against other products

class disassociation

strategy… OVP

closely tied to the brand position

the reasons why the customer will click, register, buy and share

the intrinsic benefits from the site, content, service and functionality

…final strategic consideration

acquisition

conversion

retention

…how do we gain new customers?

…OVP and integration with other channels

…build relationships, develop advocates and engage

product

promotion

tactics…

price

place

people

process

physical evidence

implementation…

is the scheduling of digital campaign

Gantt chart or project plan

Key resources are determined

responsibilities are allocated

management processes are put in place

control and evaluation...

Link to the digital objectives set earlier

evaluate the success of…

different digital mix elements

different digital channels

different digital media

finally, feedback and learn

SOSTAC® planning model…

1

2

3

4

5

6

situation

objectivesstrategytactics

actioncontrol

corporate

marketing

digital

resources scheduling

Smith, 1990

5S’s

marketing mix

Situatio

n analysi

s

• Mission Statement and Corporate Objectives• Marketing Audit – Macro, Micro and Internal• SWOT and TOWS Analysis, development of CSF’s

Objectives

• SMART• Specific, Measureable, Realistic, Achievable and Time-bound

Strategy

• Growth and Competitive Advantage• Branding• Segmentation, Targeting and Positioning

Tactics

• The Marketing Mix• Product, Price, Promotion, Place, People, Process and Physical Evidence

Action

• Implementation of the plan• Allocation of resources and management of performance

Control

• Measuring performance against objectives and desired outcomes• Amending approach based on variance

Smith, 1990

References and reading

Armstrong, G & Kotler, P. (2008) Marketing- An Introduction. 9th ed Pearson Education: LondonDibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. (2012) Marketing: Concepts and Strategies. 5th European ed. Houghton Mifflin: AbingdonRyan, D. and Jones, C. (2009) Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation London: Kogan Pagehttp://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/dealing-with-digital-disruption/http://www.smartinsights.com/digital-marketing-strategy/sostac-model/