Digital Marketing Teigland 2011


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Slides from my lecture on digital marketing to first year Bachelor students at the Stockholm School of Economics in May 2011. Many of the slides are based on David Jobber's textbook:

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  • [twitter]Guest lecturing at Ed Wright’s MBA class #WCU #SocialMediaMarketing #education [/twitter]Image Source:
  • While we have always had networks, what has changed dramatically is that now with social media we have the ability to easily and quickly reach out to individuals across the globe whom we have never met before. And another significant change is that previously while we had one to one two-way communication, this did not enable group communication, and while we also had one to many communication, this did not enable two way communication, but now with social media we can have many to many conversations. So for me the definition of social media are online communication channels that enable many to many interactions and conversations. And as no surprise the most active users of social media are younger people, those who have become skilled at using computers and the internet for all kinds of purposes – to build relationships, find information and knowledge, solve problems, and learn. An extensive study that was just completed by one of the gurus in this area, danahboyd, found that the digital world really is changing the way that young adults and youths socialize and learn. These younger generations are using these new media to explore their own interests and experiment with self-expression – while at the same time they are developing both technical skills and a new form of social skills – solving complex problems online in virtual teams. As a result, these individuals are not only used to but expect more freedom and autonomy in their problem-solving activities at workenable communication & collaboration… through user-generated content….from one-to-one to many-to-many people…- across all boundaries(Next slide)Other notes creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression. These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence.Extending friendships online while some developing shared interest communities. Change way that youth socialize and learn - Youth engage in peer-based, self-directed learning online. – Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that is oriented by set, predefined goals.Increased degree of freedom and autonomy Not just receivers of knowledge but creators of knowledge as well danahboyd studyWe are happy to announce the online release of the findings from our three-year Digital Youth project ( All of the researchers who have worked on this project will be writing up individual publications, but this report represents a synthesis of the findings across the 22 different case studies. It has been over three years in the making, and is the result of a truly collaborative effort with 28 researchers and research collaborators.This project is part of the MacArthur Foundation Digital Media and Learning initiative. can find all the details in the documents linked below, and a summary of our report below.Two-page summary of report: paper: report: release and video: SUMMARYOver three years, Mimi Ito and her 28-person research team interviewed over 800 youth and young adults and conducted over 5000 hours of online observations as part of the most extensive U.S. study of youth media use to date.They found that social network sites, online games, video-sharing sites, and gadgets such as iPods and mobile phones are now fixtures of youth culture. The research finds today's youth may be coming of age and struggling for autonomy and identity amid new worlds for communication, friendship, play, and self-expression.Many adults worry that children are wasting time online, texting, or playing video games. The researchers explain why youth find these activities compelling and important. The digital world is creating new opportunities for youth to grapple with social norms, explore interests, develop technical skills, and experiment with new forms of self-expression.These activities have captured teens' attention because they provide avenues for extending social worlds, self-directed learning, and independence.MAJOR FINDINGS- Youth use online media to extend friendships and interests. -Most youth use online networks to extend the friendships that they navigate in the familiar contexts of school, religious organizations, sports, and other local activities. They can be always "on," in constant contact with their friends through private communications like instant messaging or mobile phones, as well as in public ways through social network sites such as MySpace and Facebook. With these "friendship-driven" practices, youth are almost always associating with people they already know in their offline lives. The majority of youth use new media to "hang out" and extend existing friendships in these ways.A smaller number of youth also use the online world to explore interests and find information that goes beyond what they have access to at school or in their local community. Online groups enable youth to connect to peers who share specialized and niche interests of various kinds, whether that is online gaming, creative writing, video editing, or other artistic endeavors. In these interest-driven networks, youth may find new peers outside the boundaries of their local community. They can also find opportunities to publicize and distribute their work to online audiences, and to gain new forms of Visibility and reputation.- Youth engage in peer-based, self-directed learning online. -In both friendship-driven and interest-driven online activity, youth create and navigate new forms of expression and rules for social behavior. By exploring new interests, tinkering, and "messing around" with new forms of media, they acquire various forms of technical and media literacy. Through trial and error, youth add new media skills to their repertoire, such as how to create a video or game, or customize their MySpace page. Teens then share their creations and receive feedback from others online. By its immediacy and breadth of information, the digital world lowers barriers to self-directed learning.Some youth "geek out" and dive into a topic or talent. Contrary to popular images, geeking out is highly social and engaged, although usually not driven primarily by local friendships. Youth turn instead to specialized knowledge groups of both teens and adults from around the country or world, with the goal of improving their craft and gaining reputation among expert peers. While adults participate, they are not automatically the resident experts by virtue of their age. Geeking out in many respects erases the traditional markers of status and authority.New media allow for a degree of freedom and autonomy for youth that is less apparent in a classroom setting. Youth respect one another's authority online, and they are often more motivated to learn from peers than from adults. Their efforts are also largely self-directed, and the outcome emerges through exploration, in contrast to classroom learning that isoriented by set, predefined goals.IMPLICATIONSNew media forms have altered how youth socialize and learn, and raise a new set of issues that educators, parents, and policymakers should consider.-Adults should facilitate young people's engagement with digital media. Contrary to adult perceptions, while hanging out online, youth are picking up basic social and technical skills they need to fully participate in contemporary society. Erecting barriers to participation deprives teens of access to these forms of learning. Participation in the digital age means more than being able to access serious online information and culture. Youth could benefit from educators being more open to forms of experimentation and social exploration that are generally not characteristic of educational institutions.Because of the diversity of digital media, it is problematic to develop a standardized set of benchmarks against which to measure young people's technical and new media literacy. Friendship-driven and interest-driven online participation have very different kinds of social connotations. For example, whereas friendship-driven activities centers upon peer culture, adult participation is more welcomed in the latter more "geeky" forms of learning. In addition, the content, behavior, and skills that youth value are highly variable depending on what kinds of social groups they associate with.In interest-driven participation, adults have an important role to play. Youth using new media often learn from their peers, not teachers or adults. Yet adults can still have tremendous influence in setting learning goals, particularly on the interest-driven side where adult hobbyists function as role models and more experienced peers.To stay relevant in the 21st century, education institutions need to keep pace with the rapid changes introduced by digital media. Youths' participation in this networked world suggests new ways of thinking about the role of education. What, the authors ask, would it mean to really exploit the potential of the learning opportunities available through online resources and networks? What would it mean to reach beyond traditional education and civic institutions and enlist the help of others in young people's learning? Rather than assuming that education is primarily about preparing for jobs and careers, they question what it would mean to think of it as a process guiding youths' participation in public lifemore generally.
  • Distance is no longer a costBusiness location becomes irrelevantTechnology permits continuous real-time trading, 24/7
  • Goh: Since we're not hip on mobile commerce in the USA, I show them some youtube videos of how cell phones in Japan are used as multi-function devices i.e. payment systems (you wave your cell phone in front of a vending machine to pay for a coke, or at a checkout line), used as personal GPS devices, integration with a GIS (geographic information system) to get directions and ask simple questions like "what restaurants are nearby", etc.d and you can give us comments
  • Viral marketing: many companies are using viral marketing techniques to promote their products to a wider online audience. Viral marketing is not a new concept by any means—it is the electronic version of word of mouth. Viral messages are spread every day (for example, when a joke is received via e-mail and then forwarded on to friends). Hotmail provided one of the first free e-mail services and rapidly expanded its user base by attaching a tag at the end of each message stating ‘get your private free e-mail at’. The viral effect soon took hold and messages were exchanged between users across the Internet. Hotmail ( became the number-one web-based e-mail supplier, with over 14 million users worldwide, most from a message sent to a handful of paid ‘e-mail’ users. The prospect of free e-mail was hard to resist and it was impossible not to tell others. To be effective, viral campaigns need to provide some incentive for the user to pass on the message, which may be in the form of giveaways.30 Additionally, companies attempt to harness this viral effect by building messages that are suitably engaging and promote an aspect of their company using content that customers want to read and send on. This requires some creativity and a strong understanding of the customer base. Humour is one way of creating a strong viral (or pass-along) effect. Pepsi ( famously e-mailed a series of streaming video adverts prior to the 2002 World Cup, stealing a march on its largest competitor. ‘Giving something for nothing’ is another effective means of increasing the viral effect. Companies like ( now sends e-mails promoting specific off-peak restaurant deals, redeemable only through unique links noted on the e-mail, with the intention that these will be passed on to ‘new’ customers. Almost everything has viral marketing potential. Companies that do not have an e-mail signature file are missing a viral marketing opportunity.(Jobber, David. Principles and Practice of Marketing, 5th Edition. McGraw-Hill International (UK) Ltd, 12/2006. <vbk:0-07-711415-9#outline(>
  • Deals by
  • RT: presents Threadless,,530,000 followers on TwitterThe whole business model for Threadless is based on an implicit understanding of how the social web works and gives a great demonstration of how communities can be built and harnessed across an organisation. Identifying online enthusiasts and passion groups and then using social platforms to bring them into the core of a business would appear to be a more powerful way of utilising social opportunities than just running ads on Facebook - but it requires a good deal more commitment. The media aspect of social offers some exciting opportunities for brands, but the potential of the social web can be significantly greater if the power of community is fully realised. In summary, there has to be purpose behind why you use social media. Largest challenge is about changing the mindset though – where create value? Use of social media considerably larger in smaller companies: Inc 100 vs Fortune 100. In these smaller companies, social media being used as a leadership tool as well. Let’s hear from some of you now on your thoughts about social media. (Next Slide)
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  • 1 Customer connectivity: the proportion of the target markets that has access to relevant technologies.2 Customer channel usage: how often target market participants use online channels and how they use the particular digital channel/platform (e.g. purchase or research?). For instance, for each customer segment and digital channel (e.g. Internet, interactive digital TV or mobile), a company should know the proportion of the target market that:makes use of and has access to a particular channelbrowses and, as a result, is influenced by using the channel for pre-purchase research and evaluationbuys through the particular channel.An alternative method is to assess media consumption: how many hours each week are spent using the Internet in comparison with traditional media such as watching TV, reading newspapers or magazines, or listening to the radio?Other potential useful information is as follows.1 Results generated online: in this approach, the company determines, say, the percentage of sales that are transacted through a particular platform.2 Marketplace impact: involves assessment of how important the channel is for a particular market, assessed on the number of sales influenced and transacted via digital channels.(Jobber, David. Principles and Practice of Marketing, 5th Edition. McGraw-Hill International (UK) Ltd, 12/2006. <vbk:0-07-711415-9#outline(>
  • Using the Twitter index, we created a word cloud to amplify the most common words used in each the bios of these connected social consumers. Followers tended to use expressive words that suggest sentiment runs rich in the Starbucks interest graph. Top words include:
  • I can’t find the source for this, it would be great if someone could point this out to me.
  • Digital Marketing Teigland 2011

    1. 1. Digital MarketingMay 2011<br />Dr. Robin Teigland<br />Stockholm School of Economics<br /><br /><br /><br />twitter: RobinTeigland<br />
    2. 2. Ways to engage…<br />The use of Twitter is highlyencouraged!<br />Me: @robinteigland<br />Notes: #Mktg211<br />
    3. 3. YEL<br />3<br />
    4. 4. 4<br /><ul><li>Background to digital marketing
    5. 5. Reshaping the marketing mix – 4Ps
    6. 6. Digital marketing implementation
    7. 7. Guest speaker – Paul DiGangi (slides posted separately)</li></ul>Today’s discussion<br />
    8. 8. What is digital marketing?<br />The application of digital technologies that form channels to market…<br /><ul><li>Internet (2D to 3D)
    9. 9. Mobile communications
    10. 10. Interactive television
    11. 11. Interactive traditional media (billboards, print)
    12. 12. Wireless </li></ul>… achieve corporate goals through meeting and exceeding customer needs better than the competition.<br />Adapted from Jobber 2007<br />5<br />
    13. 13. Key elements of the digital age<br />Jobber 2007<br />6<br />
    14. 14. Social Media Revolution<br /><br />How are these trends affecting the traditional marketing mix?<br />7<br />
    15. 15. A new consumer is appearing…<br />“Digital Immigrants”<br />“Digital Natives”<br />Prensky 2001, Beck and Wade 2004, Mahaley 2008 <br />
    16. 16. ..using a growing number of social media<br />Technology that enhancesexperiencesandadds depth to the relationshipsformed among individuals and/or organizations…<br />which is driven by users…<br />contributingcontent.<br />Adapted from<br />DiGangi 2010<br />
    17. 17. Drivers of change<br />Increased<br />Interactivity<br />DiGangi 2010<br />
    18. 18. From organization-generated content (OGC) to user-generated content (UGC)<br />Content created by an organization to sell to a user<br />Shifting sources <br />of value<br />Content created by a user to be used by a user<br />Di Gangi 2008<br />
    19. 19.<br />
    20. 20. 13<br /><ul><li>Background to digital marketing
    21. 21. Reshaping the marketing mix – 4Ps
    22. 22. Digital marketing implementation
    23. 23. Guest speaker – Paul DiGangi</li></ul>Today’s discussion<br />
    24. 24. Reshaping the marketing mix<br />Jobber 2007<br />14<br />
    25. 25. Digital marketing media<br /><ul><li>Internet (2D and 3D, virtual worlds)
    26. 26. Mobile communications and wireless
    27. 27. Interactive billboards and print
    28. 28. Interactive television
    29. 29. Augmented reality</li></ul>Adapted from Jobber 2007<br />15<br />
    30. 30. Reshaping price<br />16<br />Transparent<br />Flexible<br />Dynamic<br />Jobber 2007<br />
    31. 31. Real-time price comparisons<br />17<br /><br />
    32. 32. Facebook Credits – A new economy?<br />Purchase with credit card, PayPal, mobile phone or in physical stores (such as Walmart), <br />Facebook takes 30% of revenue<br />In study with 3000 respondents: Will you be buying and spending Facebook Credits? <br /><ul><li>17 % Yes, absolutely
    33. 33. 58 % No, absolutely not
    34. 34. 25 % I have to learn more</li></ul>Predictions by Social Times Pro, May 2011<br />Facebook Credits will likely have nearly 25 million users in next 12 mos.<br />By 2016 Facebook Credits will probably have 100 million users<br />Group 8b , Course 2304, Media Management 2011<br />
    35. 35. Reshaping product<br />19<br />Individualized<br />Digitalized<br />But this is only the beginning….so much more to come!<br />Customized<br />
    36. 36. Reshaping place<br />20<br /><br />Global, virtual, & always open<br /><ul><li>Distance no longer a cost
    37. 37. Business location irrelevant
    38. 38. 24/7 real-time trading</li></ul>Jobber 2007<br />
    39. 39.
    40. 40. Reshaping promotion<br />22<br />Permission-based<br />Instantaneous – real time<br />Interactive<br />Jobber 2007<br />
    41. 41. Reshaping promotion - Interactivity<br />23<br /><br />Convergence of technologies<br /><br />
    42. 42. Reshaping promotion - Interactivity<br />Interactive ads in traditional print media<br />Augmented reality, mobile phones<br /> (zoo)<br /> (car)<br /> (angel)<br />Interactive billboards<br />Video, mobile phones<br /> (Shanghai)<br /> (Nokia)<br />Interactive video advertisements<br />Video, internet<br /> (Volvo)<br />24<br />
    43. 43. Viral marketing<br /><ul><li>Encourages users of product or service supplied by business to encourage friends to join in as well</li></ul><br />Haag & Cummings 2008<br />25<br />
    44. 44. IKEA<br /><br />
    45. 45. Groupon and Facebook Deals<br />
    46. 46.<br />
    47. 47. Social<br />Mobile<br />Location<br /><br />
    48. 48. 30<br /><ul><li>Background to digital marketing
    49. 49. Reshaping the marketing mix – 4Ps
    50. 50. Digital marketing implementation
    51. 51. Guest speaker – Paul DiGangi</li></ul>Today’s discussion<br />
    52. 52. Inc 500 companies report success<br />Barnes, 2010 Inc. 500 Update: Most Blog, Friend And Tweet But Some Industries Still Shun Social Media<br />
    53. 53.
    54. 54. But most ”traditional” companies…<br />Organizational use<br />No use <br />One-way “broadcasting”<br />Two-way<br />conversations<br />… are here<br />Ban use<br />Allow use<br />Encourage use<br />Employee use<br />Teigland, The Network Survey, 2010<br />
    55. 55. Reshaping the marketing mix<br />Jobber 2007<br />34<br />
    56. 56. Stages in digital marketing planning<br />What are the drivers?<br />What is the environment?<br />What is the objective?<br />How can you create superior value?<br />How should activities be integrated?<br />What competencies are needed? Etc.<br />What should be measured?<br />Jobber 2007<br />35<br />
    57. 57. Marketing audit and SWOT analysis<br /><ul><li>Customer connectivity
    58. 58. Percent target customers have access to the relevant digital channels
    59. 59. Customer channel usage
    60. 60. How often target customers use the digital channels
    61. 61. Results generated
    62. 62. Percent of sales transacted through a particular digital channel
    63. 63. Marketplace impact
    64. 64. How important the particular channel is for the target market</li></ul>Jobber 2007<br />36<br />
    65. 65. Marketing objectives and strategy<br /> How to create competitive advantage?<br /> - Lower prices<br /> - Lower costs<br /> - Improved service quality<br /> - Greater product variety<br /> - Improved product customization<br />How to deliver superior value to the customer?<br />Jobber 2007<br />37<br />
    66. 66. Social media enable communities<br />
    67. 67. Why do people participate?<br /><br />
    68. 68. Why do people participate?<br />
    69. 69. Users create their own meanings<br />41<br /><br />
    70. 70. 42<br />There is nowhere to hide<br />Monitor social media sites and react in a timely fashion<br /><br />Fortune, Rey 2008<br />
    71. 71.<br />
    72. 72. Transparency, transparency, transparency<br />Core Value #6: <br />"Build Open and Honest Relationships with Communication<br />!/zappos<br />
    73. 73. Who are the Twitter influencers?<br /><br />
    74. 74. Word cloud of Starbucks’top 50,000 consumer profiles<br /><br />
    75. 75. A day in the life of a Foursquare user<br /><br />
    76. 76. Benefits and limitations of digital technologies to customers<br />Jobber 2007<br />48<br />
    77. 77. Benefits and limitations of digital technologies to organizations<br />49<br />Jobber 2007<br />
    78. 78. The 5 Is of digital marketing<br />Identification – customer specifics<br />Individualism – tailored for lifetime purchases<br />Interaction – dialogue to learn about customers’ needs<br />Integration – of knowledge of customers throughout company<br />Integrity – develop trust through non-intrusive marketing such as permission marketing<br />Will it replace the <br />traditional marketing mix?<br />Peppers & Roger 1997<br />50<br />
    79. 79. Some things do not change<br />Innovation Exchange <br />Exchange Trust <br />Trust Relationships<br />Relationships Interaction <br />
    80. 80. 52<br /><ul><li>Background to digital marketing
    81. 81. Reshaping the marketing mix – 4Ps
    82. 82. Digital marketing implementation
    83. 83. Guest speaker – Paul DiGangi (slides posted separately)</li></ul>Today’s discussion<br />
    84. 84. 53<br />Thanks and <br />see you in world!<br />Karinda Rhode<br />aka Robin Teigland<br /><br /><br /><br />twitter::robinteigland<br />
    85. 85. Sources and acknowledgements<br />Allen, JP, (Accessed 24 April 2009).<br />Chaffey, D. 2009. Benchmarking to improve your digital marketing strategy,<br />Deloitte, 2008. 2008 Tribalization of Business Study. <br />DesAutels, P. 2008. The Multinational’s Nemesis, ICIS 2008.<br />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 College of Business<br />Gurteen, D. Online Information 2007: KM goes Social,<br />Haag & Cummings, 2008. Information Systems Essentials, McGraw-Hill/Irvine.<br />Jobber, 2007. Principles & Practices of Marketing, Fifth Edition, McGraw-Hill.<br />Poole, IBM: Web 2.0 goes to work,<br />Wesch, M.<br />Acknowledgements<br />Allen, JP, University of San Francisco<br />Mahaley, S., Duke Corporate Education<br />Fuller, R., Goh, S., Wasko, M., Florida State University, College of Business<br />Paul DiGangi, Western Carolina University<br />54<br />