01

Situating
digital in
marketing
 Situating digital in marketing › Introduction Situating digital in marketing › Understanding digital marketing

1.1 Introduction 1.3 Understanding digital marketing

Today, no marketing strategy is complete if it does not incorporate digital strategy How does digital marketing fit into this definition? There is, in fact, no basic
and expression. Understanding digital requires thinking beyond any one tool or difference between ‘traditional’ marketing and digital marketing. They are one
channel, and towards an exchange of value: an economic system trading with and the same.
attention as currency.
Ultimately, the aim of any type of marketing is to keep customers and stimulate
What is digital? Bud Caddell defines ‘digital’ as “a participatory layer of all media sales in the future. Digital communication tools make it possible to connect and
that allows users to self-select their own experiences, and affords marketers build long-term relationships with customers.
the ability to bridge media, gain feedback, iterate their message, and collect
Digital marketing helps to create consumer demand by using the power of the
relationships” (Caddell, 2013). In other words, digital is a new way of exploring
interconnected, interactive web. It enables the exchange of currency but, more
content (for users) and connecting with customers (for marketers).
than that, it enables the exchange of attention for value. This is referred to as the
attention economy.
Digital is not just a set of marketing channels – it’s a different way of thinking about
how people engage with media, each other and the world around them. Digital Digital marketing is powerful in two fundamental ways. First, the audience can be
enables you to segment your audience and customise messages in a valuable and segmented very precisely – even down to factors like current location and recent
measurable way. The availability of information, our inherent desire to contribute, brand interactions – which means that messages can (and must) be personalised
and user-friendly technology have rewritten the rules of engagement. People and tailored specially for them.
are not passive consumers; they are empowered as publishers, editors and
commentators. The conversation is multi-directional and usually not started or Second, the digital sphere is almost completely measurable – every minute and
controlled by brands. every click by a customer can be accounted for. In digital you can see exactly how
various campaigns are performing, which channels bring the most benefit, and
In this chapter, you will gain: where your efforts are best focused.

• An understanding of the role digital can play in a marketing plan

1.3.1 Crowdsourcing
• An approach to reaching people in a world of digital tools

• Insight into how to get the most out of this textbook Crowdsourcing is a powerful example of the way digital tools have enabled
certain ways of thinking. In simple terms, crowdsourcing is a distributed
problem-solving and production model that relies on an active community
1.2 Understanding marketing to find solutions to problems. Crowdsourcing relies heavily on the tools and
communication forms made possible by the Internet.
Before we can delve into digital marketing, it’s important to understand the
fundamentals that underpin marketing itself. After all, digital marketing has the Given that the Internet connects people all over the world through different
same purpose, intentions and objectives. publishing tools and technologies, the information and ideas on these channels
have become commodities in themselves. In the past, we had to gather physically
Dr Philip Kotler defines marketing as follows, “Marketing is that function of the to create crowds. Now, with technology, crowds can be closely connected while
organisation that can keep in constant touch with the organisation’s consumers, being geographically distant.
read their needs, develop products that meet these needs, and build a programme
of communications to express the organisation’s purposes”. By listening to the crowd and asking for their contributions, organisations
(Kotler and Levy, 1969: p 15). can gain first-hand insight into their customers’ needs and desires, and build
products and services that meet those needs and desires. With an earned
sense of ownership, communities may feel a brand-building kinship with the
community through collaboration and contribution.

4 5
 Situating digital in marketing › Understanding digital marketing Situating digital in marketing › Understanding digital marketing

Using the Internet, a savvy organisation can tap a wider range of talent and
knowledge than is contained in its own resources. Tapping into this resource
can be done in one of three ways:

1. Crowdsourcing, which involves asking and enabling people to share their

ideas or creations in exchange for an emotional or monetary reward. This
is the most common type used for marketing and idea generation. Websites
such as Threadless (www.threadless.com), Idea Bounty (www.ideabounty.com)
and Wikipedia (en.wikipedia.org) are prime examples of crowdsourcing.

2. Crowdfunding, which involves asking many people in a large crowd each

to donate a small amount of money in order to gather a large sum to fund
a specific project or venture. Kickstarter (www.kickstarter.com) is a well-
known platform where people who want to start projects can ask for backers
to fund them. The higher the contribution, the more the backer will receive
once the project is complete.
Figure 1. The ways in which people use digital media. (Source: InMobi,2012)
3. Microtasking, which involves breaking a big task or project down into tiny
components and asking many people to each complete a few of these The key to succeeding is two-fold: ideas must be remarkable, and you must find a
components, usually for payment. One company that uses microtasking niche group who are obsessed with your product and willing to devote their scant
is BrandsEye (www.brandseye.com), which pays members of its crowd to attention to it. These fans may tell their friends and, in doing so, spread the word
evaluate the sentiment behind mentions in social media. over their interconnected digital networks. If most consumers are likely to ignore
your marketing message then the goal is to speak to those who are actually listening.
Communities that use crowdsourcing platforms exist for different reasons.
Some exist because there are people who have a keen interest in and affinity for This leads to another key digital consideration. These days, people themselves are
those brands. They participate in the community because they want to improve media channels. After all, most of us create, share, comment on and link to content
the products and services they receive. Others want to gain a monetary reward that we find interesting – or that we think will interest our friends and followers.
or the prestige of devising the winning solution. These personalised digital broadcasts are intercepted by people who are interested
in what we are saying and have chosen to listen to us. Through this, individuals have
Whatever the case, crowdsourcing demonstrates the power of the Internet – it
become conduits for information, ideas and news in a powerful way.
connects people, builds communities, spreads messages, and taps into a global
source of ideas and inspiration.

1.3.2 Digital audiences

Both the media landscape and people’s media habits have changed. There are
many fragmented and highly specific niche communities at play across multiple
digital media channels.

At the same time, people’s attention is fragmented by the many new media
channels and tools available – on top of traditional media, we now have social
networks, emails, web tools, mobile devices and more splitting our attention.
With so many choices and too little time, audiences have become very skilled at
ignoring marketing messages.
Figure 2. YouTube user ComicBookGirl19 broadcasts valuable content.

6 7
 Situating digital in marketing › Understanding digital marketing Situating digital in marketing › Understanding digital marketing

This exchange of ideas comes down to creating communities and nurturing 1.3.4 Measurability
relationships. Digital helps us to understand these relationships better.

The second factor that distinguishes digital is its measurability. Because of the
1.3.3 Segmenting and customising messages technology on which it is built, almost every action on the web can be tracked,
captured, measured and analysed.
All of these ideas about niche communities, influential media personalities and
fragmented attention spans tie in to the ability to segment online audiences and The benefit for marketers should be clear. While traditional media are undoubtedly
customise messages. effective, it’s sometimes hard to know exactly what is working, how well it’s
working, and why. Digital can help you pinpoint the success of campaigns down to
Segmentation is the process of taking a single, general audience and dividing
the channel, audience segment, and even time of day.
it up according to specific groupings or characteristics. Once this is done, each
group can be targeted differently depending on their needs from the brand. For 12pm 12pm
example, a bank may serve a wide range of customers, but the messages it sends % of Volume

to segments such as young high-income earners, small-business owners and Transaction rate (%)
8am 4pm 8am 4pm
retirees will be very different – necessarily so. 40
.13 .13
15

Digital offers a wealth of user information, the ability to target users based on .15 .15 20 10
2
these factors, and the availability of technology for creating and managing large 12
.20 .34
databases. In digital marketing segmentation, customers can be reached across
4am 8pm 4am 8pm
a wide range of communication channels depending on their preferences and
needs. The focus should not be on separate channels, but on how digital channels
can enable and work with the strengths of what may be considered ‘traditional’ Response rates were
12am highest at night and early 12am
in the morning
media such as TV or billboards. Today, digital often plays the role of a bridge for
customers between different marketing media, allowing them to respond to a
Figure 4. Measuring online data can tell you, for example, when the best time is to
broadcast message on TV through a social media property for instance, where
send an email. (Source: Harvest Retail Marketing, 2013)
they can obtain a deeper, richer and more interactive brand experience.
Web analytics – the discipline of tracking, analysing and drawing insight from
Once an audience segment has been created, the message sent to it can also
online data – can also go a step further to helping a marketer understand the
be customised (often automatically) thanks to the availability of the necessary
audience’s intent. While the data merely answers what people are doing, looking
information and digital tools. This can be as small as adding the customer’s name
at this in conjunction with other insights can help you understand why they are
to an email greeting, or as significant as tailoring an entire page of content to their
doing it as well.
buying history, connections and brand interactions. For example, Amazon provides
product recommendations to users based on the items that they have bought as Measurability in digital is not just about understanding the technology, although
well as similar products purchased by others. that is a necessary first step. It’s about understanding how people and technology
intersect – with the ultimate goal of using this information to craft the most
effective and relevant marketing messages. As Kotler would say, it circles back to
the notion of “creating and satisfying customers at a profit” (Kotler, 1991).

1.3.5 The TCEO model

There are many models for approaching digital marketing but we have found it
most effective to group it into four interrelated disciplines: Think, Create, Engage
and Optimise. This grouping creates a process that will result in the optimal use
of digital tactics.

Figure 3. Amazon recommends items based on past purchases and views.

8 9
 Situating digital in marketing › Understanding digital marketing Situating digital in marketing › References

The diagram below illustrates the interrelation between the disciplines and eMarketing, the title of this book, is also a term that has lost some relevance since
highlights how the Optimise function should be present at each stage: our first edition. As the field matures and the effect of digital thinking, for lack
of a better phrase, becomes both more evident and acknowledged, terms and
practices will evolve to account for this.

For those with inquisitive minds who would like an introduction to how the Internet
itself works (and we know there are many of you!), we have included a break down
as an appendix at the back of this book. There you will also find a history of the
Internet. Both sections contain valuable information that will likely inform your
interactions on this powerful medium.

At its core, marketing is about conversations and the Internet has become a hub
of conversations. The connected nature of the Internet allows us to follow and
track these conversations and provides entry points for all parties. What follows in
this book are ways of conversing with existing and potential customers using the
Internet. This textbook can be read from back to front or used as a reference guide.
Key terms, concepts and interrelated subjects are highlighted in each chapter.
THINK is the starting point in our approach. It is tasked with developing strategic Apply the knowledge you gain for success and let us know how it goes!
plans for the digital world. Like traditional communications planning, it includes
topics such as consumer insights, research, concept development, budget
allocation and channel planning.
1.5 References
CREATE brings concepts to life by executing campaigns and shaping platforms. Caddell, B., (2013) Digital Strategy 101. [Online]
It covers all aspects of creating web assets, from web design and development to Available at: http://www.slideshare.net/bud_caddell/digital-
conceptual copywriting, the creation of social media assets, mobile development, strategy-101-24081694
engineering business systems and social media integration. [Accessed 23 August 2013].

ENGAGE is responsible for driving traffic and building relationships. Media buying Harvest Retail Marketing, (2013) Email time chart. [Online image]
and planning, search engine optimisation, email marketing, social media and Available at: http://harvestretailmarketing.com/client-uploads/12-12-email-
campaign management are some of the key activities here. time-chart.png
[Accessed 27 September 2013].
OPTIMISE is about continuous improvement. It delivers insight and lessons
through analytics, data mining, conversion optimisation and testing. Optimise is InMobi., 2012. New mobile web stats InMobi. [Online]
relevant at each stage of the process. Available at: http://i.marketingprofs.com/assets/images/daily-data-point/
new-mobile-web-stats-inmobi.jpg
[Accessed 27 September 2013].
1.4 Accounting for change and how to use
this book Kotler, P. and Levy, S., 1969, “Broadening the Concept of Marketing” in
Journal of Marketing (Vol. 33, No.1). American Marketing Association.

It must be acknowledged that the term ‘digital’ is becoming increasingly insufficient

for discussing the topics shared in this chapter. The idea of an analogue system
is increasingly irrelevant and so referring to something as ‘digital’ can suggest a
very broad meaning that, at its worst, is so vague that it becomes meaningless.

10 11
Part 1
Think
 Think › Introduction

Introduction to Think
It seems too obvious to mention, but the foundation of consistently successful
marketing communications lies in thorough planning and strategic preparation.
Before you execute digital campaigns, you need to plan them. You need to
research and understand your product, your communication challenge, your
market, your competitors and, of course, your consumers. We call planning,
strategy and research Think.

Think is the first step in a strategic process:

1. Think: Research, plan and strategise. Use the opportunities of digital to

meet communication, market and product challenges. Plan assets and
campaigns.

2. Create: Make beautiful assets, from websites and videos to banner

adverts and applications.

3. Engage: Use channels to drive traffic to those assets and build

relationships with customers.

02
4. Optimise: Track and analyse to understand how assets and campaigns
are performing. Derive insight to improve and test assets and
campaigns.

The first section of this book is devoted to Think.

Digital Marketing Strategy tackles how the Internet has changed and challenged
the world in which we market, and how best to use digital tools and tactics for
effective marketing strategies.

Market Research unpacks how to use the Internet to understand audiences and
Digital
campaigns. The Internet was originally developed as an academic tool for sharing Marketing
research. This is ideal for savvy marketers – this chapter addresses some
considerations for online market research. Strategy
Content Marketing Strategy lays out the building blocks for effectively using
content, not advertising, to reach audiences. Brands are required to think like
publishers – which means a consideration of far more than just the end product.
Content targeting, production, planning and distribution must be considered. This
chapter lays out concepts and processes that assist in creating relevant content.

What’s inside: An introduction to some key terms and concepts and a guide to
understanding strategy. We look at the questions to ask when compiling a digital marketing
strategy, and a digital marketing strategy in action.

14
 Digital Marketing Strategy › Introduction Digital Marketing Strategy › What is marketing?

2.1 Introduction Pay per click (PPC)

Pay per click is advertising where the advertiser pays
only for each click on their advert.
A strategy indicates the most advantageous direction for an organisation to take
Return on investment
over a defined period of time. It also outlines which tactics and means should be The ratio of cost to profit.
(ROI)
used to execute this direction. Originating as a military term, strategy is about
RSS allows you to receive/syndicate this information
using your strengths, as well as the context in which you are operating, to your Really Simple
without requiring you constantly to open new pages in
advantage. Syndication (RSS)
your browser.

In marketing, strategy starts with understanding what the business wants to Search engine SEO is the practice that aims to improve a website’s
achieve, or what problem it wants to solve. It then considers the context in which optimisation (SEO) ranking for specific keywords in the search engines.

the business and its competitors operates, and outlines key ways in which the Short Message Service
Electronic messages sent on a cellular network.
business and brand can gain advantage and add value. (SMS)

Simple Object Access A simple XML-based protocol to allow for the

In this chapter, you will learn:
Protocol (SOAP) exchanging of structured information over HTTP.

• How to define and distinguish business strategy, marketing strategy A set of ideas that outline how a product line or brand
and digital strategy will achieve its objectives. This guides decisions on how
Strategy
to create, distribute, promote and price the product or
• The key building-block concepts that are essential to any strategy service.

• The questions that need to be asked when assembling a digital A specific action or method that contributes to achieving
Tactic
marketing strategy a goal.

Public relations on the web. Online news releases and

WebPR article syndication promote brands as well as drive
2.2 Key terms and concepts traffic to sites.

eXtensible Markup
A standard used for creating structured documents.
Language (XML)
Term Definition
A particular set of rules and specifications that software
programs can abide by when communicating with each
other. It serves as an interface between programs and
2.3 What is marketing?
Application
facilitates their communication, similar to the way
programming interface
in which a user interface facilitates communication A simple definition for marketing is that it is the creation and satisfaction of
(API)
between humans and computers. APIs are often used by
demand for your product or service. If all goes well, this demand should translate
third-party developers to create applications for social
into sales and, ultimately, revenue.
media websites such as Twitter and Facebook.

A set of 95 theses organised as a call to action (CTA) In 2012, Dr Philip Kotler defined marketing as “the science and art of exploring,
Cluetrain Manifesto for businesses operating within a newly connected creating, and delivering value to satisfy the needs of a target market at a profit.
marketplace.
Marketing identifies unfulfilled needs and desires. It defines, measures and
In strategic management and marketing, the percentage quantifies the size of the identified market and the profit potential” (Kotler, 2012).
Market share or proportion of the total available market or market
segment that is being serviced by a company. In order to motivate people to pay for your product or service, or to consider your
Metric A unit of measurement. organisation superior to your competitors, you need to create meaningful benefits
and value for the consumer. The value that a marketer should seek to create
The understanding and influencing of the perception
should be equal to or even greater than the cost of the product to the consumer.
Online Reputation of an entity online. This entails ensuring that you know
Management (ORM) what is being said about you, and that you are leading Doing this often and consistently enough will grow trust in and loyalty towards the
the conversation. brand.

16 17
 Digital Marketing Strategy › What is digital marketing? Digital Marketing Strategy › Understanding marketing strategy

2.4 What is digital marketing? 2.5 Understanding marketing strategy

If marketing creates and satisfies demand, digital marketing drives the creation 2.5.1 Business and brand strategy
of demand using the power of the Internet, and satisfies this demand in new and
note innovative ways. The Internet is an interactive medium. It allows for the exchange
Before you can delve into marketing strategy, take a step back and consider the
What brand interactions of currency, but more than that, it allows for the exchange of value.
have you had that
business and brand with which you are working.
you actually consider
A business on the Internet can gain value in the form of time, attention and advocacy
valuable? The end-goal of any business is to make money, in one way or another. Business
from the consumer. For the user, value can be added in the form of entertainment,
strategy asks the questions: ‘What is the business challenge we are facing that
enlightenment and utility; content marketing is one powerful way to create value.
prevents us from making more revenue?’ or, ‘What business objective should we
The reciprocity of the transaction is what’s important here – in other words, the
strive for in order to increase the money in the bank?’
exchange is a two-way street that provides benefit to both parties simultaneously.
The brand is the vessel of value in this equation. The brand justifies why the
The Internet has changed the world in which we sell. It is not a new marketing
business matters, and what value its adds to people’s lives. The value of the brand
channel; instead, it creates a new paradigm for the way in which consumers
is measured in terms of its equity – how aware are people of the brand? Does it
connect with brands and with each other. The complete scope of marketing is
hold positive associations and perceived value? How loyal are people to the brand?
practised on the Internet – products and services are positioned and promoted,
purchased, distributed and serviced. The web provides consumers with more When you have the answer to this question, you can formulate a marketing strategy
choice, more influence and more power. Brands have new ways of selling, new to address the challenge or objective you’ve discovered.
products and services to sell, and new markets to which they can sell.

The roles played by marketing agencies are shifting too. So-called ‘traditional’ 2.5.2 Marketing strategy
agencies are getting better at digital marketing, while agencies that started out
as digital shops are starting to play in the traditional advertising space. More The purpose of a marketing strategy is to address a business or brand challenge
than ever, integrated strategies that speak to an overall brand identity are vital to or objective that has been revealed. An effective strategy involves making a series
achieving an organisation’s goals. Consumers are increasingly more fluent in their of well-informed decisions about how the brand, product or service should be
movement across channels and in their use of multiple of channels at once. They promoted; the brand that attempts to be all things to all people risks becoming
expect the same from the brands with which they connect. Anyone still thinking in unfocused or losing the clarity of its value proposition.
the old ‘traditional versus digital’ dichotomy is sorely out of date.
For example, a new airline would need to consider how it is going to add value to
However, marketing on the Internet does not mean throwing out the rule book the category and differentiate itself from competitors; whether their product is
on marketing and business principles. Instead, the Internet provides a new a domestic or international service; whether its target market would be budget
environment in which to build on these. Profit is still revenue less cost. The Internet travellers or international and business travellers; and whether the channel would
does not change that. be through primary airports or smaller, more cost-effective airports. Each of these
choices will result in a vastly different strategic direction.
Brands build loyalty among users who love their products or services. Users fall
in love with products and services when their experience is tailored to their needs, To make these decisions, a strategist must understand the context in which
and not the needs of the brand. More than any other type of marketing, digital the brand operates: what are the factors that affect the business? This means
marketing is measurable. This gives brands the opportunity to build tailored, conducting a situational analysis that looks at four pillars:
optimised brand experiences for consumers.
1. The environment
2. The business
3. The customers
4. The competitors

18 19
 Digital Marketing Strategy › Understanding marketing strategy Digital Marketing Strategy › Understanding marketing strategy

Here are some considerations and tools for conducting your brand’s situational Out of this, you can determine what the brand or product’s unique selling point note
analysis. (USP) is. A USP is the one characteristic that makes your product or service better This answers the
than the competition’s – what unique value does it have? Does it solve a problem question: ‘What are the
special things about
Understanding the environment that no other product does?
your brand that make
it marketable and
The environment is the overall context or ‘outside world’ in which the business
unique?’
functions. It can involve anything from global economics (how well is the local Understanding customers
currency performing these days?) to developments in your industry. Every brand In order truly to understand your customers, you need to conduct market research
will have a specific environment that it needs to consider, based on the type of (discussed in much more detail in the next chapter). Try not to make assumptions
product or service it produces. about why people like and transact with your brand – you may find their values and
motives are quite different from what you thought. Ongoing research will help you
note An analysis of the business and brand environment will typically consider political,
build a picture of what particular benefit or feature your business provides to your
This answers the economic, social, technological, legal and environmental (PESTLE) influences to
customers, allowing you to capitalise on this in your marketing content.
question: ‘What external identify a clear set of considerations or issues pertinent to the marketing strategy.
factors will have
an influence on the One important area on which to focus here is the consumer journey – the series of
marketing objectives
you set?’ Understanding the business steps and decisions a customer takes before buying from your business (or not).
Luckily, online data analytics allow you to get a good picture of how people behave
There are several marketing models that can be used to understand the business
on your website before converting to customers; other forms of market research
and brand you are working with. Since it’s essential for all marketing messages
will also help you establish this for your offline channels.
to encapsulate the brand’s identity and objectives, this is a very important step.

On the Internet, a consumer journey is not linear. Instead, consumers may engage
A crucial consideration is the brand itself. What does it stand for? What does it
with your brand in a variety of ways – for example, across devices or marketing
mean? What associations, ideas, emotions and benefits do people associate with
channels – before making a purchase.
it? What makes it unique?

There are several levels of branding to investigate:

Awareness

Brand Idea
The essence of
your brand

Brand/Product Bond
Persona
The manifestation of the brand

Consider
Advocate
in human characteristics The
Loyalty
Emotional Benefits Loop
How does your product service make
the consumer feel?

Functional Benefits
Summarises the tangible benefits to the consumer Buy!

Features & Attributes

Tangible assets of your product or services focus on most
desirable/differentiation Evaluate

Brand Pyramid Template

Figure 2. The customer journey is cyclical.
Figure 1. Understanding the business’ brand. (Source: Adapted from Brilliant Noise, 2012)
(Source: Adapted from Noesis Marketing, 2011)

20 21
 Digital Marketing Strategy › Understanding marketing strategy Digital Marketing Strategy › The building blocks of marketing strategy

note The goal is to reach customers with the right marketing message at the right the Internet allows for near-instantaneous feedback and data gathering, digital
The customer journey
stage of their journey. For example, you may want to use aspirational messages for marketers should constantly be optimising and improving their online marketing
answers the question: someone in the exploration phase, but focus on more direct features and benefits efforts.
‘What do people
(such as a lower price) when they’re almost ready to buy.
really want from your
brand, and what would
User-centric thinking, which involves placing the user at the core of all decisions,
convince them that you is vital when looking at building a successful digital marketing strategy. The
offer this?’ Understanding competitors digital marketing strategist of today is offered not only a plethora of new tactical
Finally, it’s important to know who else is marketing to your potential customers, possibilities, but also unprecedented ways of measuring the effectiveness of chosen
what they offer, and how you can challenge or learn from them. strategies and tactics. Digital also allows greater opportunities for interaction and
consumer engagement than were possible in the past, so it is important to consider
On the Internet, your competitors are not just those who are aiming to earn the ways in which the brand can create interactive experiences for consumers, not
your customers’ money; they are also those who are capturing your customers’ just broadcast messages.
attention. With more digital content being created in a day than most people could
consume in a year – for example, over 100 hours of video are uploaded to YouTube The fact that digital marketing is highly empirical is one of its key strengths.
every minute (YouTube, 2013) – the scarcest resources these days are time, focus Almost everything can be measured: from behaviours, to actions and action paths,
and attention. to results. This means that the digital marketing strategist should start thinking
with return on investment (ROI) in mind. Built into any strategy should be a testing
When considering competition, it’s also worthwhile looking at potential framework and the ability to remain flexible and dynamic in a medium that shifts
replacements for your product. The Internet is disrupting and accelerating the and changes as user behaviours do.
note
pace of disintermediation in a number of industries, meaning that people can now
This answers the
question: ‘What can you go directly to the business instead of transacting through a middleman (look at the If we defined strategy as ‘a plan of action designed to achieve a particular outcome’,
do to stand out from the travel industry as an example). To stay ahead, you should be looking at potential the desired outcome of a digital marketing strategy would be aligned with your
crowd?’
disruptors of your industry as well as the existing players. organisation’s overall business and brand-building objectives or challenges. For
example, if one of the overall objectives were acquisition of new clients, a possible
digital marketing objective might be building brand awareness online.
2.5.3 Digital marketing strategy
2.6 The building blocks of marketing strategy
Once you have a clear sense of what the business challenge or objective is, and you
have defined how your marketing strategy will work towards fulfilling it, you can
The following building-block techniques will help you structure a marketing
start thinking about your digital marketing strategy.
strategy – both online and offline – that addresses your core business challenges.

Consider that in the early days of TV, when the new medium was not as yet These strategy models are just starting points and ways to help you think through
entirely understood, there were separate ‘TV planners’ who created a ‘TV problems; as you grow in experience and insight, you could find yourself relying on
strategy’ for the brand. Over time, this was incorporated into the overall them less or adapting them.
marketing strategy (as it should be).

The same is going to happen with digital. Increasingly, digital thinking is being
2.6.1 Porter’s Five Forces analysis
incorporated into marketing strategy from day one. This section considers
digital strategy separately in order to highlight some differences in approach,
but this should change in practice over time. Porter’s Five Forces analysis is a business tool that helps determine the competitive
intensity and attractiveness of a market. The Internet’s low barrier to entry means
that many new businesses are appearing online, providing near-infinite choices
Digital marketing strategy builds on and adapts the principles of traditional
for customers. This makes it important to consider new factors when devising a
marketing, using the opportunities and challenges offered by the digital medium.
marketing strategy.
A digital marketing strategy should be constantly iterating and evolving. Since

22 23
 Digital Marketing Strategy › The building blocks of marketing strategy Digital Marketing Strategy › The building blocks of marketing strategy

These stories then go on to build connections between people, ideas, brands and
products. Communities of people follow truly great brands because they want to
Threat of
be part of their stories. Apple is a good example of a brand with a dedicated tribal
Power of
customers new entrants following. People want their products; they want the world to know that they have
an iPhone or a Macbook. This kind of tribal following spells success for any brand.

With price differentiation becoming a challenge, especially for smaller players

Threat of
in the market, businesses need to consider differentiating on value. Value is a
Power of
suppliers Competetive substitute combination of service, perceived benefits and price, where customers may be
products note
rivalry within willing to pay a higher price for a better experience, or if they feel they are getting
Industry something more than just the product. The 4Ps have been
expanded by various
academics to include
many different
3. Placement (or distribution) concepts. The core ideas
remain - how are you
Figure 3. Porter’s Five Forces. Product distribution and markets no longer have to be dictated by location. Simply positioning the essential
components of your
by making their products visible online (for example, on a website or Facebook
offering to own space
page), brands can reach a global market. The key is to reach and engage customers in the minds of your
2.6.2 The Four Ps on the channels they are using – this is why choosing your digital tactics is vital. audience?

You want to engage customers on their terms, not yours.

The Four Ps of marketing help you structure the components that make up a
brand’s offering, differentiators and marketing. They have been fundamentally Technology such as APIs, SOAP services, RSS and XML allow information and
changed by the Internet and need to be looked at in the context offered by digitally services to be distributed throughout the world. For example, the API for a hotel
connected media and from the perspective of the consumer. How your brand is reservations database allows a diverse range of websites to offer instant online
positioned in the mind of your consumer will ultimately determine your success. bookings for hotels in the inventory.

1. Products (and services) 4. Promotion

Products and services are what a company sells. The Internet enables business The Internet, as an information and entertainment medium, naturally lends itself
to sell a huge range of products, from fast-moving consumer goods and digital to promoting products. The online promotional mix is an extension of the offline,
products such as software, to services such as consultancy. Online, the experience but with some significant differences. For one, online promotion can be tracked,
the user has in discovering and purchasing can be considered part of the product measured and targeted in a far more sophisticated way.
the brand provides.
But promotion doesn’t just mean advertising and talking at customers – on
The Internet has enabled mass customisation. For example, Nike (nikeid.nike.com) the Internet, it’s crucial to engage, collaborate and join conversations, too.
and Converse (www.converse.com) allow customers to customise their own Interacting with customers helps build relationships, and the web makes this
trainers. The Internet as a distribution medium also makes it possible for products sort of communication easy. That’s why a good portion of this book is devoted to
such as software and music to be sold digitally. engagement tactics and tools.

2. Price 5. A new P: People

The prevalence of search engines and of shopping comparison websites, such as In addition to the existing Four Ps, the Internet requires you to consider a new
www.pricerunner.co.uk, www.pricecheck.co.za/ and www.nextag.com, makes it P: People. This element speaks to examining the powerful human element that
easy for customers to compare product prices across a number of retailers; this the digitally connected world permits: personalisation, peer-to-peer sharing,
makes the Internet a market of near-perfect competition (Porter, 2008). communities, and consumer- centric organisations that allow people to participate
in the brand story.

24 25
 Digital Marketing Strategy › The building blocks of marketing strategy Digital Marketing Strategy › Crafting a digital marketing strategy

The Cluetrain Manifesto (1999) describes markets as ‘conversations’. Humans follow. In digital marketing, however, there is no single definitive approach – each
are storytellers; brands create stories, myths and legends around their products business must create its own roadmap. However, there are questions you can use
and services. Ultimately, what people say about your product or service is a story to guide the process.
and now, more than ever, consumers are helping to craft the stories that define
organisations. A strategy needs to cover the questions of who you are, what you are offering and
to whom, as well as why and how you are doing so. The steps and questions below
cover what an organisation should be aware of when creating and implementing a
2.6.3 SWOT analysis strategy that will meet its marketing objectives and solve its challenges.

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is an ideal way 1. Context

to understand your business and your market.
The first step in crafting a successful strategy is to examine the context of the
organisation and the various stakeholders. We’ve covered this under marketing
strategy earlier in this chapter, but it bears repeating:

• What is the context in which you are operating (PESTLE factors) and how is note
this likely to change in the future? PESTLE is discussed in
more detail earlier in
this chapter.
• Who are you, why does your brand matter and what makes your brand
useful and valuable?

• Who are your customers, and what needs, wants and desires do they have?

• Who are your competitors? These may extend beyond organisations that
compete with you on the basis of price and product and could also be
competition in the form of abstracts such as time and mindshare.

Thorough market research will reveal the answers to these questions.

Figure 4. SWOT analysis.

Always have a purpose in mind when conducting a SWOT analysis. For example,
2. Value exchange
study the external threats to your business, and see how learning from these can
help you overcome internal weaknesses. This should tie back in to your business Once you have examined the market situation, the second step is an examination
and marketing objectives – strengths should be promoted, opportunities should of your value proposition or promise: in other words, what unique value your
be sought out, while threats and weaknesses should be minimised as much as organisation can add to that market. It is important to identify the supporting
possible. A SWOT analysis is part of a situational analysis and identifies the key value-adds to the brand promise that are unique to the digital landscape. What
issues that direct the marketing strategy. extras, beyond the basic product or service, do you offer to customers?

The Internet offers many channels for value creation. However, the definition
2.7 Crafting a digital marketing strategy of what is ‘valuable’ depends largely on the target audience, so it is crucial to
research your users and gather insights into what they want and need.

Any activity with an end goal (whether it’s winning a war, building a city or selling Content marketing is the process of conceptualising and creating this sort of
a product) should have a blueprint in place for every person in the organisation to content – examples of value-based content include a DIY gardening video for a
hardware brand, a research paper for a business analyst, or a funny infographic
for a marketing company.

26 27
 Digital Marketing Strategy › Crafting a digital marketing strategy Digital Marketing Strategy › Crafting a digital marketing strategy

3. Objectives >> Key performance indicators (KPIs)

When setting your digital marketing goals, there are four key aspects to consider: KPIs are the specific metrics or pieces of data that you will look at to determine
objectives, tactics, key performance indicators (KPIs) and targets. Let’s look at whether your tactics are performing well and meeting your objectives. For
each one in turn. example, a gardener may look at the growth rate, colour and general appearance
of a plant to evaluate whether it is healthy. In the same way, a marketer will look
at a range of data points to determine whether a chosen tactic is delivering. KPIs
>> Objectives are determined per tactic, with an eye on the overall objective.
Objectives are essential to any marketing endeavour – without them, your strategy
would have no direction and no end goal or win conditions. It’s important to be able
to take a step back and ask, ‘Why are we doing any of this? What goal, purpose or >> Targets
outcome are we looking for?’ Finally, targets are the specific values that are set for your KPIs to reach within a
specific time period. Sportspeople need to reach targets to advance their careers
• What are you trying to achieve? – for example, come in the top ten to qualify for the final, or run 10km in under
27 minutes. If you meet or exceed a target, you are succeeding; if you don’t reach it,
• How will you know if you are successful? you’re falling behind on your objectives and you need to reconsider your approach
(or your target).
Objectives need to be SMART:

• Specific – the objective must be clear and detailed, rather than vague Here is an example:
and general.
SMART objective:

• Measurable – the objective must be measurable so that you can gauge

• Increase sales through the eCommerce platform by 10% within the next
whether you are attaining the desired outcome.
six months.

• Attainable – the objective must be something that is possible for your

Tactics:
brand to achieve, based on available resources.
• Search advertising
• Realistic – the objective must also be sensible and based on data and
trends; don’t exaggerate or overestimate what can be achieved. • Facebook brand page

• Time-bound – finally, the objective must be linked to a specific timeframe. KPIs per tactic:

• Search advertising – number of search referrals, cost per click on the ads
>> Tactics
Objectives are not the same as tactics. Tactics are the specific tools or approaches • Facebook brand page – number of comments and shares on campaign-
you will use to meet your objectives – for example, a retention-based email specific posts
newsletter, a Facebook page, or a CRM implementation. As a strategy becomes
more complex, you may have multiple tactics working together to try to achieve the Targets per tactic:
same objective. Tactics may change (and often should), but the objective should
• Search advertising – 1 000 search referrals after the first month, with a
remain your focus. We’ll look at tactics in more detail in the next section.
10% month-on-month increase after that

• Facebook brand page – 50 comments and 10 shares on campaign-specific

posts per week

28 29
 Digital Marketing Strategy › Crafting a digital marketing strategy Digital Marketing Strategy › Crafting a digital marketing strategy

4. Tactics and evaluation

Video marketing Branding, customer retention and value creation
Many digital tools and tactics are available once you have defined your digital
marketing objectives. Each tactic has its strengths – for example, acquisition Video marketing involves creating Since it is so interactive and engaging, video marketing is
(gaining new customers) may best be driven by search advertising, while email video content. This can either be excellent for capturing and retaining customer attention.
is one of the most effective tools for selling more products to existing customers. outright video advertising, or can be Done correctly, it provides tangible value – in the form of
valuable, useful, content marketing. information, entertainment or inspiration – and boosts a
brand’s image in the eyes of the public.
The table below expands on some of the most popular tactics available to digital
marketers and their possible outcomes. These will be covered in far more detail in Social media Branding, value creation and participation
the Engage section of this book.
Social media, also known as From a strategic perspective, social media is useful for
consumer-generated media, is media brand building, raising awareness of the brand story and
Tactic Outcome (in the form of text, visuals and audio) allowing the consumer to become involved in the story
created to be shared. It has changed through collaboration. Social media platforms also play
the face of marketing by allowing a role in building awareness, due to their shareable, viral
SEO Customer retention and acquisition collaboration and connection in a way nature. They can also provide crowdsourced feedback
that no other channel has been able and allow brands to share valuable content directly with
This is the practice of optimising a SEO has a key role to play in acquisition, as it ensures to offer. their fans.
website to rank higher on the search your organisation’s offering will appear in the search
engine results pages for relevant results, allowing you to reach potential customers. A site Email marketing Customer retention and value creation
search terms. SEO involves creating that is optimised for search engines is also a site that is
relevant, fresh and user-friendly clear, relevant and well designed. These elements ensure
content that search engines index a great user experience, meaning that SEO also plays a Email marketing is a form of direct Email marketing is a tool for building relationships
and serve when people enter a role in retention. marketing that delivers commercial with potential and existing customers through valuable
search term that is relevant to your and content-based messages content and promotional messages. It should maximise
product or service. to an audience. It is extremely the retention and value of these customers, ultimately
cost effective, highly targeted, leading to greater profitability for the organisation as a
customisable on a mass scale and whole. A targeted, segmented email database means that
Search advertising Sales, customer retention and acquisition completely measurable – all of which a brand can direct messages at certain sectors of their
make it one of the most powerful customer base in order to achieve the best results.
In pay-per-click or search The beauty of search advertising is that it is keyword digital marketing tactics.
advertising, the advertiser pays only based. This means an ad will come up in response to the
when someone clicks on their ad. search terms entered by the consumer. It therefore plays
The ads appear on search engine a role in sales, acquisition and retention. It allows the
results pages. advertiser to reach people who are already in the buying
cycle or are expressing interest in what they have to offer. Once the objectives and tactics have been set, these should be cross-checked and
re-evaluated against the needs and resources of your organisation to make sure
Online advertising Branding and acquisition your strategy is on the right track and no opportunities are being overlooked.

Online advertising covers advertising The main objective of display advertising is to raise brand
5. Ongoing optimisation
in all areas of the Internet – ads in awareness online. It can also be more interactive and
emails, ads on social networks and therefore less disruptive than traditional or static online It is increasingly important for brands to be dynamic, flexible and agile when
mobile devices, and display ads on advertising, as users can choose to engage with the ad marketing online. New tactics and platforms emerge every week, customer
normal websites. or not. Online advertising can be targeted to physical
locations, subject areas, past user behaviours, and much behaviours change over time, and people’s needs and wants from brand evolve as
more. their relationship grows. The challenge is to break through the online clutter to
connect with customers in an original and meaningful way.
Affiliate marketing Sales and branding
This process of constant change should be considered in the early stages of
Affiliate marketing is a system of Online affiliate marketing is widely used to promote strategy formulation, allowing tactics and strategies to be modified and optimised
reward whereby referrers are given eCommerce websites, with the referrers being rewarded
as you go. After all, digital marketing strategy should be iterative, innovative and
a ‘finder’s fee’ for every referral they for every visitor, subscriber or customer provided
give. through their efforts. It is a useful tactic for brand open to evolution.
building and acquisition.

30 31
 Digital Marketing Strategy › Crafting a digital marketing strategy Digital Marketing Strategy › Case study: Nike digital strategy

Understanding user experience and the user journey is vital to building successful
Nike chose to use a combination of technological innovations, data analytics and social media
brands. Budget should be set aside upfront for analysing user data and optimising
engagement to reach this new, digitally savvy audience.
conversion paths.
Engineers and scientists associated with prestigious organisations such as MIT and Apple were
Social thinking and socially informed innovation are also valuable and uniquely
hired to build exciting new technologies and examine market insights. One of their biggest
suited to the online space. Socially powered insight can be used to inform strategic
accomplishments was the creation of Nike+ in 2010 – a device that lets users track their exercise
decisions in the organisation, from product roadmaps to service plans. Brands
regimens, upload these to the web, monitor their progress, and share their achievements socially.
have moved away from being merely present in social media towards actively using
The product range grew to include the Nike FuelBand.
it, aligning it with actionable objectives and their corresponding metrics. This is
critical in demonstrating ROI and understating the opportunities and threats in This new community created incredible volumes of data, which Nike used to track behaviours,
the market. create online communities and spaces for Nike fans, and build meaningful relationships between
the brand and its customers. Nike moved its social media marketing team in-house so that it had
Managing the learning loop (the knowledge gained from reviewing the performance
a closer connection to this data and the conversations being generated by its fans.
of your tactics, which can then be fed back into the strategy) can be difficult. This is
because brand cycles often move more slowly than the real-time results you will
see online. It is therefore important to find a way to work agility into the strategy, Nike also embraced a range of other digital best practices:
allowing you to be quick, creative and proactive, as opposed to slow, predictable
and reactive. • A strong focus on storytelling: Nike advertising shifted from delivering one core ‘big
message’ about its products to talking about inspiration, aspirations and overcoming odds.
For example, Nike’s ‘I Would Run To You’ ad (essentially a funny short film) shows the story
2.8 Case study: Nike digital strategy of a long-distance couple reconnecting by running across the country to see each other.

2.8.1 One-line summary • Being an authentic brand: The storytelling approach creates authenticity and a sense
of community. Nike also strives to understand and engage with the subcultures of each
Nike transformed its marketing strategy by embracing key digital strategies such as data analytics, sport, talking to them in the vernacular they are familiar with.
social engagement and storytelling.
• Understanding and communicating with customers on their terms: When Nike created
its big-budget ‘Write The Future’ ad for the 2012 World Cup, featuring soccer superstars
2.8.2 The problem Wayne Rooney and Cristiano Ronaldo, it flighted the ad on Facebook and YouTube rather
than on TV. Having seeded to a community and primed it with teasers, the ad received 8
As one of the biggest sports brands in the world, Nike was not struggling for exposure or attention. million views in the first week and went viral.
However, the brand was noticing that its traditional, big-budget advertising strategy was seeing
fewer returns over time. • Being remarkable and shareable: Nike put up a 30-storey digital billboard in Johannesburg,
South Africa that was populated with constantly-updating user tweets, creating a buzz
The biggest market for Nike products consists of young people between the ages of 15 and 25, around the campaign.
who spend 20% more with Nike than any other group. But these Generation Y customers weren’t
paying attention to big, top-down media, and were looking for a brand that offered constant change • Allowing mass customisation: The Nike iD online store lets fans create their own custom
and innovation, not just the same old thing over and over. shoe designs and have them shipped. The concept earned Nike over $100 million in its
first year.
Nike realised that it needed a new approach to reach this digital audience.

2.8.4 The results

2.8.3 The solution

Understanding that marketing in the digital age is a conversation, not a monologue, Nike dropped Nike’s new approach – harnessing data for user insight and creating a diverse, social and engaged
its spending on TV and print advertising by 40% between 2010 and 2012 – but increased its overall digital strategy – has had excellent results.
marketing budget to $2.4 billion in 2012.

32 33
 Digital Marketing Strategy › Case study: Nike digital strategy Digital Marketing Strategy › Further reading

Nike reaches over 200 million fans every day in an interactive dialogue, rather than having to rely It all starts with understanding the business challenges that your brand faces. From here, an
on big sponsored events such as the Super Bowl or World Cup to reach this number. effective marketing strategy looks at the market context, weighs the available options and makes
important choices, based on solid research and data. Digital marketing strategy adds a layer of
The massive volumes of freely shared user data produce meaningful brand insights, lead to technology, engagement and iterative optimisation into the mix. The wide variety of tools and
product innovations, and allow the brand to get closer to consumers. tactics offered by the digital medium should inform your strategic choices.

In addition to this: Digital marketing strategy is highly empirical and your strategic thinking should be mindful of ROI
and how it can be measured. This will allow you to optimise your tactics and performance in order
• Nike share prices rose by 120% between 2010 and 2012 – an important consideration, to create a valuable brand story, an excellent user experience, the most optimised conversion
since every business aims to make money, after all. funnels, and the highest ROI.

• Nike+ experienced a 55% growth in membership in 2012 – as of June 2012, 7 million users
have signed up for the service, and the majority of these connect with the brand several 2.11 Case study questions
times each week to upload and review their exercise data.

• As of August 2013, the main Nike Facebook page has over 15 million likes, the Nike 1. What was the key insight that helped Nike develop a holistic marketing strategy?
Football page has 19.4 million likes, and the Nike Basketball page has over 5 million –
posts typically see a high level of interaction and discussion. 2. What role do you think offline marketing and branding channels played in furthering the
digital strategy?
• Similarly, on Twitter, the brand is also engaging millions of fans – 1.7 million on the core
Nike account, 1.2 million on the brand’s US-based Nike.com store account, and 1.4 million 3. What should Nike take into consideration when rolling out new elements and campaigns as
on the Nike Football account. part of their marketing strategy?

2.9 The bigger picture 2.12 Chapter questions

All of the chapters in this book are linked to digital marketing strategy in one way or another. 1. Why is it important to consider the business context when planning your marketing strategy?

A solid business and brand strategy should be the starting point of any marketing venture, and you 2. How has the Internet affected marketing and the models we use to understand it?
should always keep one eye on it as you develop specific campaigns, platforms and approaches.
3. Do you agree with the idea that customers are more empowered than they were before
After all, you should always remember that you are trying to reach your chosen audience by
digital communications were so prevalent? Motivate your answer.
communicating to them in the most effective way, to build lucrative long-term relationships.

While strategy helps you understand the questions you should ask, market research is the process
used to answer them. From there, content marketing strategy helps you put your ideas into
2.13 Further reading
practice, creating materials that engage, enthral, convert and retain customers.
www.sethgodin.typepad.com – Seth Godin’s popular blog provides regular insight and food for
thought.
2.10 Summary
smithery.co – A marketing and innovation blog that teaches marketers to ‘Make Things People
Want, rather than spend all their energy and resources trying to Make People Want Things’.
Strategy is the essential first step in positioning your brand within the market and creating a roadmap
for achieving your business goals. While there are many different paths one can take, there is a clear
www.gigaom.com – GigaOM’s community of writers covers a wide range of technological copies.
process for understanding where you are, where you need to be, and how you will get there.

34 35
 Digital Marketing Strategy › References

www.adverblog.com – A digital marketing blog that collates ideas from marketing campaigns
around the world.

www.baekdal.com – Thomas Baekdal’s articles provide perspectives and models of how the
Internet is changing marketing.

Positioning: The Battle for Your Mind – This book by Ries & Trout published in 2002 offers
excellent advice claiming space in the minds of consumers.

2.14 References
Brilliant Noise, (2012) Brilliant Model: the Loyalty Loop. [Online]
Available at: http://brilliantnoise.com/brilliant-model-the-loyalty-loop/#more-3873
[Accessed 28 August 2013].

Cendrowski, S., (2012) Nike’s new marketing mojo. [Online]

Available at: http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/
[Accessed 8 August 2013].

Kotler, P., (2012) What is marketing? [Online]

Available at: http://www.kotlermarketing.com/phil_questions.shtml#answer3
[Accessed 20 August 2013].

Noesis Marketing, (2011) Building a Brand Pyramid. [Image]

http://www.noesismarketing.com/building-a-brand-pyramid/
[Accessed 26 September 2013].

Porter, M., (2008) The Five Competitive Forces That Shape Strategy in Harvard Business Review,
January 2008, p86–104.

Vipat, R., (2013) Digital marketing at Nike. [Online]

Available at: http://www.slideshare.net/ojasvipat/final-digital-marketing-at-nike
[Accessed 8 August 2013].

YouTube, (2013) Statistics.[Online]

Available at: http://www.youtube.com/yt/press/statistics.html
[Accessed 7 August 2013].

36