Lecture 7Digital MarketingDaniel Chicksand and Lawrence MitchellReading: Chaffey (2007), E-Business and E-Commerce Managem...
Introduction to sessionWhat is marketing and the marketing concept?What is digital marketing?How is digital marketing used...
What is Marketing?Marketing can be defined as “the management processresponsible for identifying, anticipating and satisfy...
What is Digital Marketing?“The practice of promotingproducts & services using digitaldistribution channels in a timely,rel...
Digital Marketing in Context
“The internet is biggest changesince the industrial revolution                              ”                          Ano...
18.3 million homes online          +11%                            7
Internet take up
Smart phone penetrationSOURCE: BMRB/Mintel
Social networking
Digital Marketing Theory    Digital marketing is direct marketing           through a new channelhttp://www.youtube.com/wa...
The REAN ModelReach Engage Activate NurtureThe sources and   How people           A person taking a   The method ofmethods...
The REAN Model Measurement at each step of the REAN Model Reach Engage Activate Nurture Best traffic      Bounce rate   ...
The new purchase model –                the need to be informedAn example of buying a washing machine from Qualitative Res...
Changing influences on decisions                                         PRODUCT          BRAND INFLUENCE                 ...
Changing influences on decisions                                      PRODUCT                                             ...
Who do you trust?                                                        17           Source: aolbrandnewworld.com / all i...
Influence of Forums                      18
10 aspects of Digital that are different1. 24/7                     A trading website is always open. There is no downtime...
10 aspects of Digital that are different6. Comparison Shopping     Never was comparison shopping so easy. Pricing policy  ...
Spiral of Prosperity    More Profits More    Investment                      Analyse Database                             ...
Digital Marketing Practice
23
Email Marketing•   Growth in sophistication from spray & pray•   Still lots of shouty emails & bad practice•   Integrates ...
To be successful•   Get permission•   Select the right broadcast platform•   Segment audience•   Relevant & engaging•   De...
Email Newsletters
Lead Generation Email CampaignEmail   Opens   Clicks1       1,284   3802       1,286   268
29
Online Display• Most similar to press advertising• Lots of creative formats to chose from (eg video,  animation)• Low cost...
To be successful•   Segment audience•   Plan like offline•   Test different creative formats•   Compare results to benchma...
32
Creative formats
The campaign: Heinz Easy-PotsVisitors click to go to alanding page on theHeinz Food
Content Marketing          •16 page ebook produced          •Promoted via online display          •Users asked to register...
37
Search• 3 basic processes: collecting (crawling), indexing &  ranking• Two types of search: natural & paid• Highly targete...
A search engine does three basic things…A day at the office… for an average search engine1. Collect         2. Index      ...
Search• 3 basic processes: collecting (crawling), indexing &  ranking• Two types of search: natural & paid• Highly targete...
Search Engine Results PageSponsored                                  Sponsored  results                                   ...
Search• 3 basic processes: collecting (crawling), indexing &  ranking• Two types of search: natural & paid• Highly targete...
A very important channel90% of the business users claim that their product or servicesearch   starts online.
To be successful•   Know rules•   Keyword research, selection & targeting•   In-bound links from quality sites•   Internal...
45
Social Media• Huge part of the web: 200m blogs; 20% of searches  result in UGC, 1 in 3 Brits on Facebook• WOM always impor...
To be successful• Strategy for listening, monitoring & responding• Identify & connect with influencers• Integrate social m...
Social Mediahttp://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 supp...
TwitterVoucherFacebookVoucher           50
51
Strategic Foundations                        52
Customer FocusUse personas to ensure a common understandingUnderstand their buying process & buying experience: http://w...
Customer FocusUse personas to ensure a common understandingUnderstand their buying process & buying experience: http://w...
56
Data Strategy• Digital is a very measurable channel• Must be prepared for significant levels of data  analysis to fully ta...
Planning has never been more            important• Key questions to ask: where are we now? Where do  we want to be? How ar...
Identify metrics to track progress                       Step 7                      Lifetime value                       ...
Case Study             60
We cover 3 major markets: Chemicals                Energy       Fertilizers  Olefins                    Oil        S...
The ChallengeTo grow 3 key metrics:£ % of qualified leads becoming sales£ Newleads vs target from       business revenue£ ...
Decision Making Cycle                     Motivation        Intention        Decision point    Preference                 ...
Promoting & Sharing the Content
ResultsFewer, higher quality leads:✔% of qualified leads becoming salesIncreased by 16% 2011 (YTD) vs 2010✔ New business r...
Lecture 7Digital MarketingDaniel Chicksand and Lawrence MitchellReading: Chaffey (2007), E-Business and E-Commerce Managem...
Warwick presentation 12 (slideshow)
Warwick presentation 12 (slideshow)
Warwick presentation 12 (slideshow)
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Warwick presentation 12 (slideshow)

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A digital marketing 101 presentation which was given to an audience of business undergraduates at Warwick Business School.

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Warwick presentation 12 (slideshow)

  1. 1. Lecture 7Digital MarketingDaniel Chicksand and Lawrence MitchellReading: Chaffey (2007), E-Business and E-Commerce Management,3rd edition - Chapter 8
  2. 2. Introduction to sessionWhat is marketing and the marketing concept?What is digital marketing?How is digital marketing used, what are the benefitsand trends?The digital tool kit explained: acquisition, retentionand conversionCase study
  3. 3. What is Marketing?Marketing can be defined as “the management processresponsible for identifying, anticipating and satisfyingcustomer requirements profitably” (Chartered Institute ofMarketing)Two distinct respects of the term marketing: 1) Specialistfunctions: market research, brand/product management,public relations, & customer service; 2) An approach: providinga guiding philosophy for all functions in a businessThe marketing concept unites these two meanings and isbroader than simply advertising and salesInitiatives such as TQM, BPR, JIT and SCM emphasise theimportance of focusing all parts of the organisation on meetingcustomer needs
  4. 4. What is Digital Marketing?“The practice of promotingproducts & services using digitaldistribution channels in a timely,relevant, personalised & cost-effective manner ” (Chaffey, 2007) 4
  5. 5. Digital Marketing in Context
  6. 6. “The internet is biggest changesince the industrial revolution ” Anon 6
  7. 7. 18.3 million homes online +11% 7
  8. 8. Internet take up
  9. 9. Smart phone penetrationSOURCE: BMRB/Mintel
  10. 10. Social networking
  11. 11. Digital Marketing Theory Digital marketing is direct marketing through a new channelhttp://www.youtube.com/watch?v=Br2KSsaTzUc&feature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQ hpg&lf=mh_lolz
  12. 12. The REAN ModelReach Engage Activate NurtureThe sources and How people A person taking a The method ofmethods you interact with your preferred action. retaining and re-use to attract business. engaging withpeople to your Typical examples activatedoffer. Engagement is include a person consumers. essentially the purchasing aIncludes how process before an product, a (The activatedyou raise action that helps newsletter consumer is aawareness your prospect subscription or a person who hasamong your come to a decision sign-up already taken attarget audience least one preferred point of action)
  13. 13. The REAN Model Measurement at each step of the REAN Model Reach Engage Activate Nurture Best traffic  Bounce rate  No. of downloads  No. of leads to sources in terms  Ease of (white papers, CRM of cost & volume navigation etc.)  Lead response (search through  No. of registrations time engines/keyword site/paths / form analysis/cpc/ban through site  Requests for completions meetings / more ners/email/newsl  No. of sales etter/social  Relevance of information media/YouTube/li information  No. / length of  Newsletter reads  Usage of tools time watching  Training requests nks/RSS provided rich content feeds/viral)  Survey response  Successful / (video/music etc.) failed internal  Banners clicked Demographics /segments searches  Registrations /  Engagement by sales by traffic /geographical segment / source / segment spread of visitors source of traffic  Comments on blogs/retweets
  14. 14. The new purchase model – the need to be informedAn example of buying a washing machine from Qualitative Research Pre- internet Decision Discussion John Discussion Purchase with Lewis with partner partner John Comet Lewis With internet ONLINE Google Cheap OFFLINE Cheap washing AOL AOL washing machine John John Discussion machine websites Lewis Lewis Discussion Discussion with Decision Decision Google Google shop shop with with partner partner partner John Lewis Pop Lewis John Comet Pop Comet Purchase Purchase Lewis Online ups Online Lewis ups Online Online 14
  15. 15. Changing influences on decisions PRODUCT BRAND INFLUENCE WORD OF MOUTH Mobile Outdoor Email Radio PersonalSales ContactsProm Web TV Direct Print 15
  16. 16. Changing influences on decisions PRODUCT WORD OF MOUTH Social Networks BRAND INFLUENCE Mobile Outdoor Persona Blogs Reviews l Email Contact Radio Networks ForumsSales sProm Web TV Direct Print 16
  17. 17. Who do you trust? 17 Source: aolbrandnewworld.com / all internet users
  18. 18. Influence of Forums 18
  19. 19. 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 Much higher volumes of data of different types than can integration be collected and measured. Real-time testing of everything: list, creative, offers, format, timing5. Many-to-many Customers do not phone call centres for a chat. The communications internet is different. It is open, democratic and even revolutionary. Customers can do a brand a lot of 19 damage
  20. 20. 10 aspects of Digital that are different6. 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 forums9. 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 same10. A website has both Like a catalogue, a website link can be sent to a list of shop & catalogue prospective customers. Like a shop, it must wait for characteristics them to call in. Unlike a high street shop, it is not visible to passers-by and is dependant on promotion. 20
  21. 21. Spiral of Prosperity More Profits More Investment Analyse Database Increase Customer ValueIdentify Prospects Cross-sell, Up-sell, Renewal Target Media Talk to Key Customers Sell Products Regularly Get Customer Build Database and Information Analyse 21
  22. 22. Digital Marketing Practice
  23. 23. 23
  24. 24. 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
  25. 25. 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
  26. 26. Email Newsletters
  27. 27. Lead Generation Email CampaignEmail Opens Clicks1 1,284 3802 1,286 268
  28. 28. 29
  29. 29. Online Display• Most similar to press advertising• Lots of creative formats to chose from (eg video, animation)• Low cost reach• Different targeting options
  30. 30. To be successful• Segment audience• Plan like offline• Test different creative formats• Compare results to benchmarks• Link to relevant landing page
  31. 31. 32
  32. 32. Creative formats
  33. 33. The campaign: Heinz Easy-PotsVisitors click to go to alanding page on theHeinz Food
  34. 34. Content Marketing •16 page ebook produced •Promoted via online display •Users asked to register •List qualified 36
  35. 35. 37
  36. 36. 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
  37. 37. A search engine does three basic things…A day at the office… for an average search engine1. Collect 2. Index 3. Rank users Search results
  38. 38. 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
  39. 39. Search Engine Results PageSponsored Sponsored results results PAID PAID Organic results FREE SEO affects only the organic search results
  40. 40. 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
  41. 41. A very important channel90% of the business users claim that their product or servicesearch starts online.
  42. 42. 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
  43. 43. 45
  44. 44. 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
  45. 45. 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
  46. 46. Social Mediahttp://www.youtube.com/watch?v=Q7osB5EC2rU
  47. 47. 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
  48. 48. TwitterVoucherFacebookVoucher 50
  49. 49. 51
  50. 50. Strategic Foundations 52
  51. 51. Customer FocusUse personas to ensure a common understandingUnderstand their buying process & buying experience: http://www.youtube.com/watch?v=3Sk7cOqB9Dk&fe ature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh _lolzMany research methodologies available: Surveys Depth-interviews Focus groups 53
  52. 52. Customer FocusUse personas to ensure a common understandingUnderstand their buying process & buying experience: http://www.youtube.com/watch?v=3Sk7cOqB9Dk&fe ature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh _lolzMany research methodologies available: Surveys Depth-interviews Focus groups 55
  53. 53. 56
  54. 54. 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
  55. 55. 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
  56. 56. Identify metrics to track progress Step 7 Lifetime value What’s Step 6 Branding Metrics the life-time value Step 5 Campaign ROI (%) based on AOV? Step 4 Cost per acquisition (CPA) How much can I afford to pay Step 3 Cost = Cost per click (CPC) for them? Step 2 Quality = Conversion rate What conversion rate do I expect?Step 1 Volume = Unique visitors reach (%) How many visitors do I need? 59
  57. 57. Case Study 60
  58. 58. We cover 3 major markets: Chemicals  Energy  Fertilizers  Olefins  Oil Sulphur  Aromatics  Gas Nitrogen  Plastics  Power  Solvents  LNG  Intermediates “Trusted market intelligence for the global petrochemical, energy and fertilizer industries””
  59. 59. The ChallengeTo grow 3 key metrics:£ % of qualified leads becoming sales£ Newleads vs target from business revenue£ Averagelead to salefrom qualified lead time
  60. 60. Decision Making Cycle Motivation Intention Decision point Preference (Justification) (Doubt) (Risk perception) (Comparisons) Unaware Aware Consideration DecisionRelevant content Blogs White Papers “How to” guides Brochure Podcasts Case Studies Online tour Key USPs Competitor Videos Product Videos Testimonials comparisons News Webinars
  61. 61. Promoting & Sharing the Content
  62. 62. 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
  63. 63. Lecture 7Digital MarketingDaniel Chicksand and Lawrence MitchellReading: Chaffey (2007), E-Business and E-Commerce Management,3rd edition - Chapter 8

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