igital Marketing Excellence
Planning, Optimizing and
Integrating Online Marketing
Fifth Edition
Dave Chaffey & PR Smith
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Contents
Chapter 1 – Introduction to digital marketing
Chapter 2 – Remix
Chapter 3 – Digital models
Chapter 4 – Digital customers
Chapter 5 – Social media marketing
Chapter 6 – Designing digital experiences
Chapter 7 – Traffic building
Chapter 8 – Customer lifecycle communications and CRM
Chapter 9 – Managing digital marketing
Chapter 10 – Digital marketing plan
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Chapter
1
Introduction to Digital
Marketing
This chapter introduces what we see as the fantastic potential of
integrated digital marketing for engaging audiences and its risks.
It introduces the difference between e-commerce, digital business
and digital marketing; the alternative digital communications
channels; the dangers of sloppy digital marketing; how to present
a business case for increasing your online activities, and the
benefits of doing so – Sell, Serve, Speak, Save and Sizzle.
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Chapter
1
Introduction to Digital
Marketing
Overall Learning Outcome:
By the end of this chapter, you will be able to:
• Understand the opportunities and risks of integrated digital marketing
• Outline an approach to developing a digital marketing plan
• Explain the key digital marketing activities needed for competitive success.
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1.1 Introduction
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1.2 Situation – The Connected World
Digital Marketing Platforms
MARKETPLACE
• Desktops, laptops and notebooks
• Mobile phones and tablets
• Other hardware
Electronic Marketspace
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1.2 Situation – The Connected World
Need for analysing
Digital activity
and meeting
from consumers
demand for online
services
Tools for assessing your online marketplace:
1. Google insights tools 5. Internet or Interactive Advertising Bureau (IAB)
2. SimilarWeb 6. Government sources
3. Nielsen 7. Non-government organizations
4. ComScore 8. IMRG
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1.3 Situation – B2C, B2B, C2B and C2C
Types of Online Presence
Chaffey & Ellis (2015)
1. Transactional e-commerce
site
2. Services-oriented
relationship building or lead-
generation web site
3. Brand-building site
4. Portal of media site
5. Social network or
Figure 1.3 Options for online communications between an organization and its customerscommunity site
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1.4 Situation – Digital Marketing Definitions
E-commerce
Customers & Suppliers
Dynamic dialogue
Selling online and the ability
to transact online
+ = Digital marketing
Customer driven discipline
Digital Business
Involves the automation of
all the business processes in
the value chain
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1.4 Situation – Digital Marketing Definitions
Integrated Digital Marketing Activities
Activities that require
planning, management and
optimization for online
marketing to be competitive
and maximize ROI.
Figure 1.5 Eight key digital marketing activities to manage in all organizations
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1.4 Situation – Digital Marketing Definitions
Right touching = every customer interaction to a communication should be
followed up by a series of relevant communications delivered via the right
combination of channels to elicit a response or further dialogue
Checklist for right touching
Delivering relevant
Search marketing
recommendations for retention
and growth
Behavioural targeting or online advertising
Following up on customer
product or promotion interest
Multi-touches across different digital
media channels for acquisition Getting the frequency right
Customer lifecycle model and Getting the channel right
welcome strategy
Reducing online attrition Getting the offer right
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1.4 Situation – Digital Marketing Definitions
Marketing Principles
• Get close to
customers, listen to
them
• Involve them
• Serve them Digital Marketing?
• Add value
Identify,
• Find the best ones
Anticipate,
• Nurture them into Satisfy customers
lifelong customers
and advocates needs efficiently
• Test, test, measure
and improve
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1.5 Situation – Sloppy Digital Marketing
Minimizing the impact of customer complaints
• The customer service operation is equipped to
monitor and engage with a targeted spectrum
of media.
• Companies fully understand where, why and
how their customers are using social media
before making any social media marketing
• changes.
A balance is struck across different types of
media – telephone, email, web, social, network
and mobile.
• The power of online communities is
recognized, and customers are encouraged to
help each other.
• Relationships are nurtured with advocates who
wield particular influence on the internet.
• Specialist tools are used to measure the
Figure 1.7 Digital marketing sloppiness causes high attrition rates impact of customers’ online activity.
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1.6 ObjectivesThe 5S – Digital Marketing Objectives
Benefit of How it is Examples
digital delivered
marketing
Sell – Grow sales Through wider distribution, promotion, sales Achieve 10% of sales online
Through giving customers extra Increase conversion
Serve – Add value benefits online or inform product rate by 5%
development through online
dialogue and feedback.
Grow email coverage to
Speak – Get closer By tracking them, asking them 50% of current
to customers questions, creating a dialogue, customer database
learning about them.
Through online email communications, Generate 10% more
Save – Save costs sales and service transactions to sales for same
reduce staff, print and postage costs. communications budget
Sizzle – Extend Through providing a new proposition Add two new significant
the brand online and new experience online while at enhancements to the
the same time appearing familiar. customer online experience
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1.6 Objectives
Figure 1.8 Ultralace, source: www.ultralase.com
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1.7 Objective – Sell – Using the Internet as a Sales Tool
Direct Online Revenue Contribution
To increase this %, using mixed-
mode or multichannel selling is
% of sales transactions a must
completed online
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1.7 Objective – Sell – Using the Internet as a Sales Tool
Figure 1.9 ROPO matrix showing main cross-channel customer behaviours Source: Google (2010)
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1.7 Objective – Sell – Using the Internet as a Sales Tool
Tagging value events to assess the
Indirect Online Revenue Contribution influence of a web site and digital
channels on sales
• Sale
• Lead
• Newsletter
% of sales influenced by • Searches
digital communications • Product page views
• Product document downloads
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1.7 Objective – Sell – Using the Internet as a Sales Tool
The Ansoff matrix
Selling what to
whom?
Figure 1.10 Online opportunities for product and market innovation
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1.8 Objective – Serve – Using the Internet as a
Customer-Service Tool
Measures of Online Customer Engagement
Engagement Metric Engagement Tactic
1. % of non-home page entry visits Use run-of-site OVP messages
2. Bounce rate Use a run-of-site sign up
3. Duration Use heatmaps or overlays to assess management
4. Marketing outcomes Get your scent right
5. Micro or step conversation rates Interactive sales advisers
6. Brand search-term strength Generate awareness
7. Email activity level Refined touch strategy
8. Define activity levels or hurdle rates Personalize by activity or lifecycle of content in
(for different activities web or email pods
9. Emotional response Mutivariate testing
10. Outcomes Use secondary navigation to highlight next steps
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1.8 Objective – Serve – Using the Internet as a
Customer-Service Tool
Adding Value to B2B Services – Seybold (1999)
“Let customers help themselves”
e.g. delivery of product, after-sales support
“Help customers do their jobs”
e.g. give content about best practice to help
professionals complete their day-to-day work
and develop their professional careers
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1.9 Objective – Speak – Using the Internet as a
Communications Tool
Inbound
Marketing
Pull mechanism: in Digital
marketing, the contact with the
brand is initiated by the
customer
Good visibility from
companies in search
engines is essential
Content Marketing
1. Content engagement value
2. Content media
3. Content syndication
4. Content participation
gure 1.11 Categories of media: paid, owned, earned
5. Content access platform
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1.9 Objective – Speak – Using the Internet as
a Communications Tool
Key digital media channels
1. Search engine marketing (SEM)
2. Online PR
3. Online partnerships
4. Interactive advertising
5. Opt-in email
6. Social media marketing
gure 1.12 Inbound marketing infographic Source: First 10 (2012)
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1.10 Objective – Save – Using the Internet for Cost
Reduction
What will catch the financial director’s ear together with “sell”?
Profitability Savings Emerge:
SAVING (money, time, effort) - Digital media channels
- Customer service
- Transactional costs
- Print and distribution
ost Per Acquisition (CPA) – crucial in controlling media, used to control the level of bids
CPA = (100/conversion rate) x Cost Per Click
CPA = Cost Per Click/Conversion rate
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1.11 Objective – Sizzle – Using the Internet as a
Brand-Building Tool
SIZZLE To add extra value, extend the experience and enhance the image
What experience could a web site deliver that would be
truly unique and representative of the brand?
Reality
Perception
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1.12 Introduction to Digital Marketing Strategy
Digital Marketing Strategy
- Clear prioritization to how the
channel should be used
- Identify target markets,
positioning, OVP, choice of mix of
channel strategy where
digital media channels to acquire
electronic channels and digital
new customers and contact
media support other
strategies to welcome and
communications and
develop existing customers
distribution channels.
Creating differential value
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1.12 Introduction to Digital Marketing Strategy
• Crystal clear objectives What you want to achieve online
• Target markets, positioning and propositions
• Optimum mix of tactical e-tools Web site, banners ads, etc
E-Strategy
• Evolutionary stage What stage you want to be at
• Online marketing mix Particularly service levels
• Dynamic dialogue Ongoing with the customer
• Integrated database Recognize and remember each
customer whether via web or
telephone
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1.12 Tactics, Action and Control
Tactics are the details of strategy.
Tactical e-tools include the web site,
opt-in email, banner ads, virtual
exhibitions and sponsorship.
Actions include project planning and
implementation, while control
involves assessing the results against
objectives.
Control also includes competitive
intelligence.
Figure 1.13 Using the Smart Insights RACE Planning framework to
link business objectives to digital marketing tactics
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Chapter Summary
• PR Smith’s SOSTAC® –Situation analysis, Objectives, Strategy, Tactics, Actions
and Control.
• The connected world connects businesses to consumers using an ever-increasing
range of platforms.
• Digital marketers need to assess the particular relevance of B2C, B2B, C2C, C2B
marketing to their organization
• Digital marketing can assist in all elements of marketing – providing new techniques
to identify, anticipate and satisfy customer needs efficiently.
• Risk assessment can minimize the risk of sloppy digital marketing.
• Clear objectives using well-directed resources and measurements are required.
• The 5S objectives are Sell, Serve, Speak, Save and Sizzle.
• E-strategy entails defining approaches to achieve digital marketing objectives
using a range of tactical e-tools and a revised marketing mix.
• Smart Insights RACE = Reach Act Convert Engage
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