Lecture 7 Digital Marketing Daniel Chicksand and Lawrence Mitchell Reading: Chaffey (2007), E-Business and E-Commerce Management, 3 rd edition - Chapter 8
Oct 21, 2014
Lecture 7
Digital Marketing
Daniel Chicksand and Lawrence Mitchell
Reading: Chaffey (2007), E-Business and E-Commerce Management, 3rd edition - Chapter 8
Introduction to session What is marketing and the marketing concept?
What is digital marketing?
How is digital marketing used, what are the benefits and trends?
The digital tool kit explained: acquisition, retention and conversion
Case study
What is Marketing?Marketing can be defined as “the management process responsible for identifying, anticipating and satisfying customer requirements profitably” (Chartered Institute of Marketing)
Two distinct respects of the term marketing: 1) Specialist functions: market research, brand/product management, public relations, & customer service; 2) An approach: providing a guiding philosophy for all functions in a business
The marketing concept unites these two meanings and is broader than simply advertising and sales
Initiatives such as TQM, BPR, JIT and SCM emphasise the importance of focusing all parts of the organisation on meeting customer needs
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What is Digital Marketing?
“The practice of promoting products & services using digital distribution channels in a timely, relevant, personalised & cost-effective manner
(Chaffey, 2007)
”
Digital Marketing in Context
“The internet is biggest change since the industrial revolution
Anon 6
”
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18.3 million homes online+11%
Internet take up
SOURCE: BMRB/Mintel
Smart phone penetration
Social networking
Digital Marketing Theory
Digital marketing is direct marketingthrough a new channel
http://www.youtube.com/watch?v=Br2KSsaTzUc&feature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh_lolz
Reach Engage
Activate
Nurture
The REAN Model
The sources and methods you use to attract people to your offer.
Includes how you raise awareness among your target audience
How people interact with your business.
Engagement is essentially the process before an action that helps your prospect come to a decision
A person taking a preferred action.
Typical examples include a person purchasing a product, a newsletter subscription or a sign-up
The method of retaining and re-engaging with activated consumers.
(The activated consumer is a person who has already taken at least one preferred point of action)
Reach Engage Activate Nurture
The REAN Model
Best traffic sources in terms of cost & volume (search engines/keyword analysis/cpc/banners/email/newsletter/social media/YouTube/links/RSS feeds/viral)
Demographics /segments /geographical spread of visitors
Bounce rate Ease of
navigation through site/paths through site
Relevance of information
Usage of tools provided
Successful / failed internal searches
Engagement by segment / source of traffic
No. of downloads (white papers, etc.)
No. of registrations / form completions
No. of sales No. / length of
time watching rich content (video/music etc.)
Banners clicked Registrations /
sales by traffic source / segment
Comments on blogs/retweets
No. of leads to CRM
Lead response time
Requests for meetings / more information
Newsletter reads
Training requests
Survey response
Measurement at each step of the REAN Model
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The new purchase model – the need to be informed
An example of buying a washing machine from Qualitative ResearchPre- internet
Discussion with
partner
John Lewis
Discussion with partner
Comet
Decision
John Lewis
Purchase
Discussion with
partner
AOL
Lewis Online
Decision
John Lewis shop
Purchase
Cheap washing machine
Lewis Online
CometPop ups
With internet
Discussion with
partnerJohn
Lewis Online
Decision
John Lewis shop
Purchase
ONLINE Google Cheap washing machine
websites
John Lewis Online
Comet
OFFLINE
AOL
Discussion with
partner
Pop ups
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BRAND INFLUENCE WORD OF MOUTH
Personal ContactsSales
Prom
Outdoor
Web
Mobile
PrintDirect
Radio
TV
PRODUCT
Changing influences on decisions
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BRAND INFLUENCE
WORD OF MOUTH
Personal
ContactsSales
Prom
Outdoor
Web
Mobile
PrintDirect
Radio
TV
BlogsReviews
ForumsNetworks
Social Networks
PRODUCT
Changing influences on decisions
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Who do you trust?
Source: aolbrandnewworld.com / all internet users
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Influence of Forums
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10 aspects of Digital that are different1. 24/7 A trading website is always open. There is no downtime
to restock, correct programming errors or repair broken links to other business systems.
2. Marketing in real time A website deals with customers in real time, raising expectations of instant query resolution, immediate response to requests and even faster delivery. Customer interaction data is being gathered continuously.
3. Personalisation Personalisation of a website is different from print. It must be based on a variety of data sources (e.g. clickstream, personal data and previous purchases)
4. Data volumes and integration
Much higher volumes of data of different types than can be collected and measured. Real-time testing of everything: list, creative, offers, format, timing
5. Many-to-many communications
Customers do not phone call centres for a chat. The internet is different. It is open, democratic and even revolutionary. Customers can do a brand a lot of damage
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6. Comparison Shopping Never was comparison shopping so easy. Pricing policy may need to be changed?
7. Global reach The reach of the website is wide but logistical or legal constraints may apply.
8. Keeping in touch A brand can use digital to improve efficiency by reducing the amount of human involvement. Eg: autoresponders, email/text reminders, FAQs, customer forums
9. Low transaction costs The cost of handling online orders and information requests, as well as of email solicitation, is much lower. But, credit card payment queries will be high and delivery costs will remain the same
10. A website has both shop & catalogue characteristics
Like a catalogue, a website link can be sent to a list of prospective customers. Like a shop, it must wait for them to call in. Unlike a high street shop, it is not visible to passers-by and is dependant on promotion.
10 aspects of Digital that are different
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Spiral of ProsperityMore Profits More Investment
Analyse Database
Increase Customer Value
Cross-sell, Up-sell, Renewal
Talk to Key Customers Regularly
Build Database and Analyse
Get Customer Information
Sell Products
Target Media
Identify Prospects
Digital Marketing Practice
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Email Marketing
• Growth in sophistication from spray & pray• Still lots of shouty emails & bad practice• Integrates well with other channels• Cheaper than other channels• Quick to market• Encourages immediate action• Very personal
To be successful
• Get permission• Select the right broadcast platform• Segment audience• Relevant & engaging• Design for images or without• Test & measure• Use email as part of life-cycle programme, rather
than single message
Email Newsletters
Lead Generation Email Campaign
Email Opens Clicks
1 1,284 380
2 1,286 268
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Online Display• Most similar to press advertising• Lots of creative formats to chose from (eg video,
animation)• Low cost reach• Different targeting options
To be successful
• Segment audience• Plan like offline• Test different creative formats• Compare results to benchmarks• Link to relevant landing page
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Creative formats
Page peel
The campaign: Heinz Easy-Pots
Visitors click to go to a landing page on the Heinz Food
Heinz site
Content Marketing
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• 16 page ebook produced• Promoted via online
display• Users asked to register• List qualified
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Search
• 3 basic processes: collecting (crawling), indexing & ranking
• Two types of search: natural & paid• Highly targeted & very important• Complex & dynamic• Paid search benefits include:
– Quick to implement– Pay for what you get
A search engine does three basic things…
1. Collect 2. Index 3. Rank users Search results
A day at the office… for an average search engine
Search
• 3 basic processes: collecting (crawling), indexing & ranking
• Two types of search: natural & paid• Highly targeted & very important• Complex & dynamic• Paid search benefits include:
– Quick to implement– Pay for what you get
Search Engine Results Page
Organic
results FREE
Sponsored
resultsPAID
Sponsored
resultsPAID
SEO affects onlythe organic search results
Search
• 3 basic processes: collecting (crawling), indexing & ranking
• Two types of search: natural & paid• Highly targeted & very important• Complex & dynamic• Paid search benefits include:
– Quick to implement– Pay for what you get
A very important channel
90% of the business users claim that their product or
service search starts online.
To be successful
• Know rules• Keyword research, selection & targeting• In-bound links from quality sites• Internal linking• Unique content which can be found• Keywords embedded in heading & body tags• Relevant landing pages• Ongoing investment, analysis & optimisation
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Social Media
• Huge part of the web: 200m blogs; 20% of searches result in UGC, 1 in 3 Brits on Facebook
• WOM always important – now on epic scale• Grouped into social news, social networks & UGC• Powerful form of communication• Brands are at risk as consumers can be very critical• Can build awareness very quickly• Very difficult to control
To be successful• Strategy for listening, monitoring & responding• Identify & connect with influencers• Integrate social media with other channels• Encourage UCG on forums & blogs• Create a blog• Presence on main social networks: Facebook,
LinkedIn, YouTube & Twitter• Identify niche forums• Create content that is likely to be shared
Social Media
http://www.youtube.com/watch?v=Q7osB5EC2rU
Integrated Media
• Live in a multi-channel world• Multi-channel marketing isn’t new• All about getting all channels to support each other,
both offline & online• Digital channels integrate well and help each other:
– Seeing display ads could result in more brand searches– Adding an email to follow-up DM could boost the DM
response– Press releases can be used to generate links and build
natural search rankings
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Twitter Voucher
Facebook Voucher
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Strategic Foundations
Customer Focus
Use personas to ensure a common understanding
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Understand their buying process & buying experience: http://www.youtube.com/watch?v=3Sk7cOqB9Dk&feature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh_lolz
Many research methodologies available: Surveys Depth-interviews Focus groups
Customer Focus
Use personas to ensure a common understanding
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Understand their buying process & buying experience: http://www.youtube.com/watch?v=3Sk7cOqB9Dk&feature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh_lolz
Many research methodologies available: Surveys Depth-interviews Focus groups
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Data Strategy
• Digital is a very measurable channel • Must be prepared for significant levels of data
analysis to fully take advantage• Data available includes: clickstream, registration,
transactional, opinions, search, competitive• Attribution is a hot, hot topic• All about outcomes:
– Micro conversions – clicks, uploads, comments, registrations
– Macro conversions – leads, direct sales• To make data work, need philosophy, technology &
process 57
Planning has never been more important
• Key questions to ask: where are we now? Where do
we want to be? How are we going to get there?• Useful framework to work within is SOSTAC:
– Situational analysis– Objectives– Strategy– Target market– Action– Control & measurement
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Identify metrics to track progress
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Volume = Unique visitors reach (%)
Quality = Conversion rate
Cost = Cost per click (CPC)
Cost per acquisition (CPA)
Campaign ROI (%)
Branding Metrics
Lifetime value
Step 1How many visitors do I need?
What conversion rate do I expect?
How much can I afford to pay for them?
What’s the life-time value based on AOV?
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Case Study
We cover 3 major markets: Chemicals
Olefins
Aromatics
Plastics
Solvents
Intermediates
“Trusted market intelligence for the global petrochemical, energy and fertilizer industries””
Fertilizers
Sulphur
Nitrogen
Energy
Oil
Gas
Power
LNG
To grow 3 key metrics:
£ % of qualified leads becoming sales
£ New business revenue from leads vs target
£ Average lead time from qualified lead to sale
The Challenge
Decision Making Cycle
Motivation
(Justification)Intention(Doubt)
Decision point (Risk perception)
Preference (Comparisons)
Unaware Aware Consideration Decision
Blogs White Papers “How to” guides Brochure
Podcasts Case Studies Online tour Key USPs
Videos Product Videos TestimonialsCompetitor
comparisons
News Webinars
Rele
van
t con
ten
t
Promoting & Sharing the Content
ResultsFewer, higher quality leads:
✔% of qualified leads becoming salesIncreased by 16% 2011 (YTD) vs 2010✔ New business revenue from leads vs targetUp 5% on 2011 budget✔ Average lead time from qualified lead to saleReduced by 7% 2011 YTD vs 2010
Lecture 7
Digital Marketing
Daniel Chicksand and Lawrence Mitchell
Reading: Chaffey (2007), E-Business and E-Commerce Management, 3rd edition - Chapter 8