Module

Dip DigM
Module no. 1

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Lesson no. All

Module 1 The opportunities of digital marketing

Here’s a summary of the key learning points from this module. Keep a copy of this
sheet in your study notebook as a helpful reminder, and to assist your revision for
exams:

Topic 1 The challenges of digital marketing

1 The six core activities involved in managing digital marketing are:

1. Acquisition
2. Conversion and proposition development
3. Retention and growth
4. Strategy and planning
5. Managing relationships
6. Supporting processes

2 The seven organisational challenges in McKinsey’s 7S model are:

1. Strategy
2. Structure
3. Systems
4. Staff
5. Style
6. Skills
7. Super-ordinate goals

3 The five stages of organisational ecommerce maturity, in order, are:

1. Unplanned
2. Diffuse management
3. Centralised management
4. Decentralised operations
5. Integrated and optimised

4 The five criteria by which ecommerce capability maturity can be measured are:
1. Strategy process and performance improvement process
2. Structure: location of ecommerce
3. Senior management buy-in
4. Marketing integration
5. Online marketing focus

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Topic 2 Digital marketing defined

5 The definition of ecommerce reminds us that digital marketing is about electronically

facilitating different types of transaction – not only financial but also a range of
informational transactions.

6 The two types of ecommerce transaction are buy-side and sell-side.

7 Ecommerce embraces all electronically mediated exchanges, whereas ebusiness is the

transformation of key business processes through the use of internet technologies.
Emarketing is the use of electronic technologies to achieve marketing outcomes, while
internet marketing is narrower than emarketing, being the use specifically of internet
technologies.

Topic 3 An introduction to digital marketing planning

8 Digital media will not be effective without a planned approach that is supported by the
organisation’s implementation and development processes.

9 The organisation’s hierarchy of plans is as follows, with each step informing and
framing the next step:
1. Corporate plan
2. Marketing plan
3. Communications plan
4. Digital marketing plan

10 Without a digital marketing plan there may be an insufficient allocation of resources to

continuous activities such as search marketing etc.

Topic 4 What goes into a digital marketing plan?

11 Four main activities make up the stages of the digital marketing plan, and are similar
for both annual and campaign plans:
1. Situation analysis
2. Objective setting
3. Strategy definition
4. Implementation

12 Database – and customer relationship management applications built on these – are

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vital to deliver relevance through digital communications. It follows that your digital
marketing plan should also specify how these technologies are managed as part of
permission marketing.

13 With reference to digital marketing, an ‘applications portfolio’ is the mix of software

applications used in an organisation or department to support digital marketing.

14 CRM and other website-related technologies are crucial to providing an effective online
customer experience. Most organisations will need to specify, introduce and manage
an applications portfolio of different types of marketing and CRM technologies.

15 A digital marketing plan gives structure to your annual plans and campaign planning. It
& ensures:
16 1. Proper review of your context or situation
2. Clear objectives
3. Strategies to achieve your objectives
4. A feedback loop whereby the plan can be monitored and controlled

Topic 5 The digital marketing planning process

17 For digital marketing plans to be effective, organisations must develop an effective

strategy development process. This will be effective if it can generate, as its output, a
digital marketing plan that is aligned with the business strategy.

18 For digital marketing planning, you can learn from well-established principles of
business planning.

19 A four-stage generic strategic planning model can be applied to any type of digital
marketing plan:
1. Strategic analysis
2. Strategic objectives
3. Strategic definition
4. Strategic implementation

20 Business strategy development commonly falls into two approaches: Predictive

strategy and Emergent strategy.

Topic 6 Digital communication tools

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21 The four main types of online presence are:

1. Transactional ecommerce sites
2. Services-oriented relationship-building sites
3. Brand-building sites
4. Portal or media sites

22 The four transactional alternatives between businesses and customers are:

1. B2C (Business-to-customer)
2. B2B (Business-to-business)
3. C2B (Customer-to-business)
4. C2C (Customer-to-customer, also known as P2P or peer-to-peer)

23 A portal is a website that acts as a gateway to information and services available on the
internet.

24/ The different types of portals and their characteristics are:

25  Access portal: Associated with ISP
 Horizontal or functional portal: Offers a range of services; for example search
engines, directories, news, recruitment, personal information management,
shopping
 Vertical portal: Covers a particular market, such as construction, with news and
other services
 Media portal: Main focus on consumer or business new or entertainment
 Geographical portal: May be horizontal or vertical
 Marketplace portal: May be horizontal, vertical or geographical
 Search portal: Main focus is on search
 Media type portal: May be voice or video and delivered by streaming media or
download of files

Topic 7 The impact of digital marketing on business

26 The four essential ways of assessing the importance of digital marketing are:
1. Customer connectivity
2. Customer channel usage
3. Online results
4. Marketplace impact

27 The benefits or reasons for adopting the internet for marketing as expressed in the 5Ss
are:
1. Sell

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2. Serve
3. Speak
4. Save
5. Sizzle

28 The Ansoff 2x2 matrix plots the options for traditional marketing (market and product)
development, and is equally relevant to digital marketing development.

29 These are the four Ansoff strategies and examples of how they might relate to digital
marketing:

Ansoff strategy Description

Market penetration The internet can be used to sell more existing
products into existing markets
Market The internet can be used to sell into new
development markets such as new geographic markets, new
customer segments or a different emphasis in
targeting
Product New products or services can be developed for
development delivery by the internet, such as information
products like market reports, and which can be
purchased using electronic commerce
Diversification New products developed for sale into new
markets

30 Four significant risks of adopting digital marketing that you must carefully consider and
addresses are:
1. Service quality risks
2. Channel conflicts
3. Implementation risks
4. Organisational strategy

Topic 8 Similarities and differences between digital and traditional

marketing communications

31 Although these terms are frequently used by marketers, they are often used loosely
and ambiguously. In particular, channel and medium are used synonymously despite
their clear distinction!

1. Channel: A route or pathway through which things are distributed, such as

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products and services. Confusingly, traditional marketers also use ‘channel’ to

describe the routes through which communications are distributed – most
notably advertising and sales communications! It is common for marketers to
refer, for example, to the ‘advertising channel’ and the ‘sales channel’.

2. Medium: The environment through which something is carried or conveyed,

such as a message, and can often be considered the actual carrier (vehicle).

3. Discipline: A defined endeavour or body of craft, based on specific concepts,

processes and methods, and using specific tools and techniques to attain a
recognised standard of outcome (e.g. best practice).

4. Tool: Any instrument or device (physical, conceptual or virtual) that is employed

in achieving a task.

32 Chaffey and Smith (2005) assert that “Emarketing can identify, anticipate and satisfy
customer needs more efficiently.”

33 Chaffey et al (2008) identify eight key changes in communications characteristics as

marketers move from exploiting traditional to new media:
1. From push to pull
2. From monologue to dialogue
3. From one-to-many to one-to-some and one-to-one
4. From one-to-many to many-to-many
5. From lean-back to lean-forward
6. Form of tools changes
7. Increase in communications intermediaries
8. Integration becomes more challenging

34, Interactive tools for customer self-help can help collect intelligence. Clickstream
35 analysis reported by a web analytics tool can help build valuable pictures of customer
& preferences. If you profile customers, placing them into different segments, you can
36 build a detailed picture of their needs and characteristics and use these to refine your
products and offers.

37 There has been a proliferation in communications intermediaries, with many new

media owners. The need for integration has become more challenging, with many
buying decisions now involving a multi-channel purchase.

Topic 9 Building customer relationships online

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38 CRM (customer relationship management) is a vital discipline in modern marketing,

especially digital marketing.

39 The four generally recognised elements of CRM, in order, are:

1. Customer selection
2. Customer acquisition
3. Customer retention
4. Customer extension

40 eCRM cannot be separated from CRM. However, while it needs to be seamlessly

integrated with other CRM, some organisations do have specific eCRM initiatives and
staff responsible for it.

41 Seth Godin defines permission marketing as ... anticipated, relevant and personal.

42 The four-step IDIC model was suggested by Peppers and Rogers for building customer
relationships online:
1. Identify
2. Differentiate
3. Interact
4. Customise

43 The four key opt-in options, selected by tick box, are:

1. Content – news, products, offers, events etc.
2. Frequency – weekly, monthly, quarterly or alerts etc.
3. Channel – email, direct mail, phone, SMS etc.
4. Format – e.g. text vs HTML

44 Chaffey’s six principles of emarketing are:

1. Consider selective opt-in to communications
2. Create a common customer profile
3. Offer a range of opt-in incentives
4. Don’t make opt-out too easy
5. Watch don’t ask
6. Create an outbound contact strategy

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