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Slide Digital Marketing Strategy, Implementation and Practice 7th
Slide Digital Marketing Strategy, Implementation and Practice 7th
Part 1
Digital marketing fundamentals
Chapter 1
Introducing Digital Marketing
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Chapter 1 – Introducing Digital Marketing
Main Topics:
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How digital marketing has transformed
marketing
Digital marketing is about:
• Audiences
• Digital devices
• Digital platforms
• Digital media
• Digital data
• Digital technology
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Figure 1.1 Customer lifecycle marketing
touchpoint summary for a retailer
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What are digital and multichannel
marketing?
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Paid, owned and earned media
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The marketing technology landscape
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Introduction to digital marketing strategy
Key considerations:
Key features of digital marketing strategy
Applications of digital marketing
Benefits of digital marketing
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Mini Case 1.2 Zalando exploits the power of
digital media and distribution to grow a multi-
billion Euro business in less than 5 years.
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Figure 1.5 Summary and examples of
transaction alternatives between businesses,
consumers and governmental organisations
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Figure 1.6 The distinction between
buy-side and sell side of e-commerce
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Strategic framework for developing a
digital strategy
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Summary of organisations challenges in
digital marketing
Strategy
Structure
Systems
Staff
Style
Skills
Superordinate goals
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Figure 1.8 A generic digital marketing
strategy development process
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Introduction to digital marketing
communications
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Figure 1.10 Six categories of digital
communications tools or media channels
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Figure 1.11 Summary of communication models
for (a) traditional media, (b) new media
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Figure 1.13 Channels requiring integration as
part of integrated digital marketing strategy
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Key communication concepts for digital
marketing
Permission marketing
Content marketing
Customer engagement
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Case study: eBay thrives in a global
marketplace
Key content:
Mission
Revenue model
Proposition
Competition
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 1
Digital marketing fundamentals
Chapter 2
Online marketplace analysis:
micro-environment
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Chapter 2 - Online marketplace analysis:
micro-environment
Main Topics:
• Situation analysis for digital marketing
• Digital marketing environment
• Understanding customer in digital markets
• Consumer. Choice and digital influence
• Customer characteristics
• Competitors
• Suppliers
• New channel structures
• Digital business models for e-commerce
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Situation analysis for digital marketing
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Understanding customer in digital markets
Customer segments
Search intermediaries
Intermediaries, influencers and media or publisher sites
Destination sites and platforms
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Figure 2.2 An example of a customer
journey map
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Figure 2.3 An online marketplace map
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Figure 2.4 Model Showing conversion
between the digital channel and traditional
channels during the buying process
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Consumer choice and digital influence
Customer characteristics:
– Demographic variables
– Psychographic and behavioural variables
Social media and emotions
Consumer Personas
The buying process
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Figure 2.9 Framework for understanding
online customer experiences
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Figure 2.10 A summary of how digital media can
impact on the buying process in a new purchase
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Competitors
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Suppliers
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New channel structures
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Digital business model for e-commerce
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Figure 2.15 Alternative perspectives on
business models
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Case study; Boo hoo – learning for the
largest dot com failure
Questions
1) Discuss which strategic market assumptions and decisions led to
Boo.com’s inevitable failure?
2) Compare and contrast the marketing strategy of Boo.com with
successful online travel and leisure retailer lastminute.com. Suggest
what made the difference between success and failure
3) Use the framework of the marketing mix to appraise the marketing
strategy and tactics of Boo.com
4) In many ways the vision of Boo’s founders was ‘ideas before their
time’. Give examples of e-retail techniques adopted by boo.com that
are now common place.
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 1
Digital marketing fundamentals
Chapter 3
The digital macro-environment
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Chapter 3 The Digital macro-environment
Main topics:
• The rate of environmental change
• Technological forces
• Economic forces
• Political forces
• Legal Forces
• Social Forces
Case Study:
Social media – Do celebrities call all the
shots?
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The rate of environmental change
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Technological forces
In the digital world, changes in market forces are
increasingly rapid. Firms should respond to these changes,
emerging opportunities and threats by developing strategic
agility.
Key factors to consider:
• Internet technology
• Cyber security
• How to develop secure systems
• Mobile and SMS messaging and applications
• Mobile Apps
• Wi-Fi and Bluetooth wireless applications
• Emerging technologies
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Emerging Technologies
Assessing the marketing value of technology innovation
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Commercial application of the diffusion
of innovation curve
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Figure 3.6 Alternative responses to
changes in technology
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Economic Forces
Economic growths
Market growth and employment
• Interest and exchange rates
• Globalization
Economic disruption
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Political forces
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Legal forces
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Social forces
Demographics
Culture
Social exclusion
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Case study 3 Social media – do
celebrities call all the shots?
Questions:
1. Use the dimensions of the SMMF to analyse the following:
a. Kylie Jenner’s cosmetics
b. Shannon Coulter’s grabyourwallet
2. Suggest how the SMMF helps to:
a. Interpret what is happening in the financial services industry in relation
to its use of social media;
b. Provide strategic solutions for the use of social media that might help
to protect banks and building societies from the GAFAMs
3. Discuss the extent to which it is possible to strategically manage social
media using case evidence 1 to 4.
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 2
Digital marketing strategy
development
Chapter 4
Digital marketing strategy
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Chapter 4 Digital Marketing Strategy
Main topics
• Digital marketing strategy and channel strategy
management
• Importance of integrated digital marketing strategy
• How to structure a digital marketing strategy
• Competitor analysis
• Setting goals and objectives
• Strategy formulation
• Strategy implementation
• Assessing different digital projects
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Digital marketing strategy and channel
strategy management
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Figure 4.2 Typical shopper behaviour
before a town-centre shopping trip
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Figure 4.3 Digital access during
town-centre visit
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Importance of integrated digital
marketing strategy
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Table 4.2 Digital Marketing Planning
failures and solutions
Potential failure or problem Potential solution
Underestimated customer demand for online Research demand, set objectives, allocate
services sufficient resources
Intense competition from existing and new Analyse the market, especially the intensity
market entrants who may spark digital of rivalry, anticipate competitive
disruption in sector through new business responses, plan a clear market entry
or revenue models strategy or potential changes to business
and revenue models
Insufficient resources and capabilities Ensure budget and specific specialist digital
skills are available to support the strategic
initiatives including ‘always-on’ activities to
continuously engage audiences using
search, social and email marketing
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Table 4.2 Digital Marketing Planning
failures and solutions (Continued)
Potential failure or problem Potential solution
Relevant customer data not collected or Research to ensure best possible knowledge of
utilised target customers; integrate customer
data into existing systems
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How to structure a digital marketing strategy
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Situation Analysis
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Consumer Profiles
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Competitor analysis
• Intermediary analysis
• Assessing opportunities and threats
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Setting goals and objectives:
• The online revenue contribution
• Setting SMART objectives
• Framework for objective setting
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Strategy formulation and implementation
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Key decisions in strategy development:
1. Market and product strategies
2. Business and revenue model strategies
3. Target marketing strategy
4. Positioning and differentiation
5. Customer engagement and social media strategy
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Key decisions in strategy development:
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Figure 4.15 Customer lifecycle segmentation
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Differential advantage
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Figure 4.17 Influences on customers of
multichannel decision making
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Figure 4.18 Matrix for evaluating digital
marketing business investment alternatives
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Figure 4.19 Influences on customers of
multichannel decision making
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Figure 4.20 Channel coverage map showing the
company’s preferred strategy for communications
with different customer segments with different value
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Assessing different digital projects
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Case study 4 – ASOS shifts the focus of
high street retailing
Questions:
1. Apply the SOSTAC model to ASOS and highlight why it has
become such a successful online fashion brand
2. Describe how ASOS uses elements of the marketing mix as part
of its digital strategy
3. Discuss how ASOS has used digital to develop its differentiated
market position
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 2
Digital marketing strategy
development
Chapter 5
Digital media and the
marketing mix
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Chapter 5 Digital media and the
marketing mix
Main topics:
• Product
• Price
• Place
• Promotion
• People, process and physical evidence
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What is the marketing mix?
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Product
Implications for digital technology for the product element
of the mix
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The long tail concept
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Branding in a digital environment
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Price
1. Increased price transparency
2. Downward pressure on price
3. Innovative pricing approaches
4. Alternative pricing structure or policies
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Price elasticity of demand
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Price elasticity of demand for a relatively
inelastic product
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Figure 5.6 Alternative pricing mechanisms
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Place
1. Place of purchase
2. New channel structures
3. Channel conflicts
4. Virtual organisations
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Promotion
Selling Virtual sales staff, site merchandising, assisted selling (including livechat) and affiliate
marketing
Public relations Online PR and influencer outreach, blogs, e-newsletters, newsletters, social
networks, links and viral campaigns
Direct mail Opt-in email using e-newsletters and focused ‘solus’ emails
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People Process and Physical evidence
People:
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Process:
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Physical evidence refers to:
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Case study: Spotify streaming develops
new revenue models
Question:
Assess how Spotify compete with traditional and online
music providers by reviewing the approaches it uses for
different elements of the marketing mix
Source: https://www.recode.net/2018/2/28/17064460/spotify-ipo-charts-music-streaming-daniel-ek
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 2
Digital marketing strategy
development
Chapter 6
Relationship marketing using
digital platforms
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Chapter 6 Relationship marketing using
digital platforms
Main topics
• Using social media to improve customer
loyalty and advocacy
• The challenge of customer engagement
• Customer lifecycle management strategy
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The goals of marketing orchestration
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Using social media to improve customer
loyalty and advocacy
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What are the main social media platforms?
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Social media activities requiring management:
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The challenge of customer engagement
• Involvement
• Interaction
• Intimacy
• Influence
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Benefits of using CRM to support
customer engagement:
• Targeting more cost-effectively
• Permission marketing
• Mass customisation of the marketing messages
• Increased breadth and depth of information
• Deeper customer understanding
• Lower cost
• Delivering loyalty programmes
• Gamification
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Marketing applications of CRM:
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CRM technologies and data management
• Personal profile
• Transaction data
• Communication interaction data
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Artificial intelligence for marketing
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Customer lifecycle management strategy
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Permission marketing
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Figure 6.9 Example of a pop-up on
Smartinsights.com
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Figure 6.10 Matrix of customer touchpoints for
collecting and updating email contact and other
profile information
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Figure 6.11. Options for lifecycle email
marketing messages for a retailer
Source: Kath Pay, Holistic Email Marketing (2016) What is lifecycle marketing?,
https://www.holisticemailmarketing.com/blog/what-is-lifecycle-marketing/ (accessed 30 July 2018).
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Personalisation and mass customisation
To derive maximum benefits from the use
of personal information consider giving
individuals more control
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Summary of elements of CRM strategy:
• Permission marketing
• Personalisation and mass customisation
• Using digital media to increase customer loyalty
• Determining what customers value
• The relationship between satisfaction and loyalty
• Measuring the voice of the digital customers
• Differentiating customers by value and engagement
• Lifetime value modelling
• Product recommendations and propensity modelling
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Figure 6.13 Factors affecting customer
satisfaction and loyalty
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Figure 6.14 Activity segmentation of a
site requiring registration
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Figure 6.15 Different representations of
LTV calculation
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Figure 6.16 An example of an LTV
segmentation plan
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Figure 6.17 RFM analysis
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Case Study 6 Dell Gets closer to its
Customers through its Social Media Strategy
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 3
Digital marketing:
implementation and practice
Chapter 7
Delivering the digital customer
experience
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Chapter 7 Delivering the digital customer
experience
Main topics:
• Planning web sites
• Initiating digital experience project
• Defining site or app requirements
• Designing the user experience
• Managing and testing the concept
• Online retail merchandising
• Site promotion and traffic building
• The impact of service quality on e-loyalty
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Delivering the digital customer experience
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Planning web sites, app design and
redesign projects
Main development tasks:
• Pre-development
• Discovery, analysis, design
• Content creation, coding development and testing
• Publishing or launching the site or improvement
• Pre-launch promotion or communications
• Ongoing promotion
• Ongoing development
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Figure 7.3 Summary of the process of
website development
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Figure 7.4 Interactive approach to
improving site effectiveness
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Who should be involved in a digital
experience project?
• Site sponsor
• Site owner
• Project manager
• Site designer
• Content developer
• Webmaster
• Digital experience analyst
• Stakeholder
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Figure 7.5 Example of a website ‘Design
and Build’ project timeline
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Initiation of a digital project
• Domain name selection and registration
• Uniform resource locators
• Selecting a hosting provider
• Web site performance optimisation
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Figure 7.7 Web Page performance test
service results ( www.webpagetest.org )
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Defining site or app requirements
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Figure 7.10 Personalisation pyramid web site
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Figure 7.11 The continuum of translation types
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Figure 7.12 Site structure diagram (blueprint)
showing layout and relationships between pages
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Figure 7.13 Example wireframe for a
children’s toy site
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Designing the user experience
Key topics:
• Evaluating
designs
• Elements of
site design
• Mobile design
requirements
and
techniques
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Managing and testing content
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Online retail merchandising
Common approaches:
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The impact of service quality on e-loyalty
• Tangibles
• Reliability and responsiveness
• Assurance
• Multichannel communication preferences
• Empathy
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Figure 7.16 Variation between product
complexity, customer value and type of
online experiences used to deliver service
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Table 7.5 Online elements of service quality
Fulfilment Security
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Case study 7 Refining the online
customer experiences at i-to-i.com
Questions
1. Select one country that i-to-i operates in closest to the
area where you live. Define a persona based on their
age and product needs and then identify the main
customer journeys and content requirements for this
persona. Which routes through the site would this user
follow?
2. Review the range of engagement techniques on the
i-to-i web site to engage the audience to generate leads
3. Identify key area for improvement of i-to-i based on
your use of the site.
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 3
Digital marketing:
implementation and practice
Chapter 8
Campaign planning for digital
media
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Chapter 8 Campaign planning for
digital media
Main topics
• The characteristics of digital
media
• Goal setting
• Campaign insight
• Segmentation and targeting
• Offer, message development
and creative
• Budgeting
• Integrations
Case study: Facebook – a Titan of the digital age
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The characteristics of digital media
• From push to pull
• Interactive dialogues
• From one-to many to one-to -some and one-to-one
• From one-to many to many-to-many communications
• From lean back to lean forward
• Medium changes, advertising standards
• Increase in communications
• Integration
• Timing of campaign
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Figure 8.1 The differences between one-to-many and one-to-
one communication using the Internet [organisation (O)
communicating a message (M) to customers (C)]
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Figure 8.2 The communication model of
Schramm (1955) applied to the internet
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Step1: Goal setting
Terminology for measuring digital campaigns
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Figure 8.4 An example of the effectiveness
measures for an online ad campaign
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Figure 8.5 Conversion marketing approach to
objective setting for web communications
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Campaign response mechanism
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Step 2 Campaign insight
Customer insight for digital marketing campaigns
• Site audience
• Online buying behaviour
• Customer media
consumption
• Customer search behaviour
• Competitor campaign activity
• Competitor performance
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Step 3 Segmentation and targeting
3 Psychographic of attitudinal segmentation Attitudes to risk and value when buying, e.g. early adopter, brand
loyal or price conscious
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Step 4 Offer message development
and creative
Content marketing
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Activity
Review a company’s use of different types of content
support marketing
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Set 5 Budgeting and selecting the digital
media mix
Level of investment
Selecting the right mix of digital media
Level of investment in digital assets
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Figure 8.10 Options for the online vs offline
communications mix: (a) online>offline, (b)
similar online and offline, (c) offline>online
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Figure 8.11 Recommendations of the mix of
investment in digital media for direct and brand
response campaigns
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Figure 8.13 Example of different referrers
contributing to a social media campaign
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Figure 8.14 Examples of the referring mix
for an airline
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Levels of investments in digital assets
Source : www.smartinsights.com/conversion-model-spreadsheets
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Step 6 Integration into overall media
schedule or plan
Key activities:
• Branding and messaging
• Varying the offer
• Frequency and interval of communications
• Sequencing of communications
• Optimising timing
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Figure 8.17 Integration of different
communication tools through time
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Case study Facebook – a Titan of the
digital age
Questions:
1. As an investor in a social network such as Facebook, which
financial and customer-related metrics would you use to
assess and benchmark the current business success and
future growth?
2. Complete a situation analysis for Facebook focusing in an
assessment of the main business risks that could damage the
future growth potential of the social network
3. Imaging you are Facebook’s marketing director. Suggest a
marketing strategy for the next 18 months based on your
answers to question 2.
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 3
Digital marketing:
implementation and practice
Chapter 9
Marketing communications
using digital media channels
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Chapter 9 Marketing Communications
using digital media channels
Main topics
• Search engine marketing
• Online public relations and
influencer relationship
management
• Online partnerships including
affiliate marketing
• Interactive display advertising
• Opt-in email marketing and
mobile messaging
• Social media and viral marketing
• Offline promotion techniques
Case study: Facebook – a Titan of the digital age
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Search Engine marketing (SEM)
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Figure 9.3 Popularity of different Google Search
features for a selection of 10,000 keywords
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What is SEO?
Improving positions in the natural listings.
Processes include:
1. Crawling
2. Indexing
3. Ranking or scoring
4. Query request and results serving
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Figure 9.4 Click-through rates depending
on position in the natural search results
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Figure 9.5 Stages involved in producing
search engine listing for the natural listing
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Advantages and disadvantages of SEO
Advantages Disadvantages
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Best practice in SEO:
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Paid search marketing
Examples Google Ads and Microsoft Bing
Advantages Disadvantages
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Figure 9.7 Google Ads campaign structures:
(a) clothing retailer; (b) restaurant chain
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Online influences and influencers
relationship management
What is online public relations?
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Advantages and disadvantages of online
public relations
Advantages Disadvantages
• Reach cost • Limited control unlike online
• Credibility advertising
• SEO • May generate negative as
well as positive comments
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Online partnerships including affiliate
marketing
Affiliate marketing is known as pay-per-performance
marketing.
Digital marketers have options
for this type of marketing:
• Aggregators
• review sites
• Reward sites
• Voucher code sites
• Uber bloggers
• Everyone else
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Figure 9.9 The affiliate marketing model (note that the
tracking software and fee payment may be managed
through an independent affiliate network manager)
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Best practice in managing affiliate marketing
• Affiliate networks
• Commission
• Cookie expiry period
• Create links
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Interactive Display Advertising
An advertiser pays for the placement of an advert on a
third-party site.
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Advantages and disadvantages of
display advertising
Advantages Disadvantages
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Figure 9.11 Behavioural ad targeting process
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Opt-in email marketing and mobile messaging
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Advantages and disadvantages of email
marketing
Advantages Disadvantages
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Social media and viral marketing
Viral marketing is closely related to social media and is a
marketing approach which involves harnessing the network
effect of the Internet; can be effective in reaching large
number of people rapidly
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Online promotion techniques
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DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 3
Digital marketing:
implementation and practice
Chapter 10
Evaluation and improvement
of digital channel performance
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Chapter 10 Evaluation and improvement
of digital channel performance
Main topics
• Performance management for
digital channel
• Content management process
• Responsibilities for customer
experience and site
management
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Performance measurement for digital channels
3 stage process:
Stage 1 Creating a performance measurement system
Stage 2 Defining the performance metrics framework
Stage 3 Tools and techniques for collecting insights,
running processes and results
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Figure 10.2 A summary of the
performance measurement process
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Figure 10.3 The five diagnostic categories
for digital marketing measurement
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Figure 10.4 potential reasons for causing
attrition on an e-commerce site
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Figure 10.5 Multichannel performance
scorecard example for a retailer
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Figure 10.6 Thirty categories of martech and insight
tools structured across the customer lifecycle
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Figure 10.7 Examples of different
measures of visitor volume to a website
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Figure 10.8 A framework for different measures used
to evaluate and manage social media marketing
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Figure 10.10 Results of multivariate testing for
National Express
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Figure 10.11 Different types of data within a performance
management system for Internet marketing
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Content management process
A process of continuous improvement in online marketing,
which involves:
• Write
• Review
• Correct
• Publish
• Test
• Publish
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Responsibilities for customer experience
and site management
Questions to ask are:
Who owns the process? Who owns the format?
Who owns the content? Who owns the technology?
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Case study 9: Learning from Amazon’s
culture of metrics
Questions:
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