Digital

Marketi
ng
Manage
ment
DMM -
Session 1
How has Digital Marketing Transformed Marketing?

• Digital media and technology have fundamentally

transformed marketing over the past few decades.
• Sir Tim Berners Lee's creation of the World Wide
Web marked the beginning of this transformation,
which has since evolved significantly.
• Today, with over 5.3 billion people regularly
engaging with online services, consumer
behaviour and marketing strategies have
undergone dramatic changes.
Importance of Digital Marketing
• Digital marketing includes a wide range of
audience interactions beyond just websites.
• To understand its significance, we must
grasp the various types of audience
interactions, collectively known as the '5Ds
of managing digital marketing interactions'.
• These 5Ds play a crucial role in achieving
marketing goals and driving business
success.
Digital
marketing is
about:
• Audiences
• Digital devices
• Digital platforms
• Digital media
• Digital data
• Digital
technology
Digital Devices
• Audiences interact with
businesses using a
multitude of digital
devices, including
smartphones, tablets,
laptops, desktop
computers, TVs, gaming
devices, and IoT devices.
• Each device offers
unique opportunities for
businesses to engage
Digital Platforms
• Interactions on digital
devices primarily occur
through major online
platforms and services such
as Facebook, Google,
Twitter, LinkedIn, Apple,
Amazon, and Microsoft.
• These platforms provide
businesses with diverse
channels to connect with
Digital Media
• Digital media includes
various communication
channels for reaching and
engaging audiences,
including advertising,
email, messaging, search
engines, and social
networks.
• Each channel offers
unique opportunities for
Digital Data
• Businesses collect valuable
insights about their
audience profiles and
interactions, which must be
protected by law in most
countries.
• Proper management and
analysis of digital data
enable businesses to
understand their audience
better and tailor marketing
strategies accordingly.
 Digital Technology
• Digital technology, also known
as marketing technology or
martech, refers to the tools and
platforms used by businesses to
create interactive experiences.
• From websites and mobile apps
to in-store kiosks and email
campaigns, digital technology
plays a vital role in enhancing
customer engagement and
driving marketing effectiveness.
RACE – Reach, Act, Convert,
Engage
RACE – Rach, Act, Convert,
Engage
Digital disruptors
• Digital disruptors are
innovations in digital media,
data and marketing
technology.
• They enable a change to a new
basis for competition in a
market or across markets.
• Disruptors are also used to
refer to startup or existing
companies that, through their
agility, are good examples of
impacting competitors through
disruption.
Digital Industry
Key Innovation
Disruptor Disrupted
Revolutionized e-commerce with AI-driven
recommendations, one-click ordering, and
Amazon Retail
Prime delivery. Created a global
marketplace for third-party sellers.
Introduced ride-hailing via a mobile app,
Transportati disrupting traditional taxis with dynamic
Uber
on pricing, real-time tracking, and gig economy
drivers.
Enabled peer-to-peer home rentals, offering
Airbnb Hospitality affordable alternatives to hotels and
transforming travel accommodation.
Shifted from DVD rentals to streaming,
Entertainme pioneering on-demand content and original
Netflix
nt productions, leading to the decline of cable
TV.
Digital Industry
Key Innovation
Disruptor Disrupted
Accelerated the shift to electric vehicles (EVs)
with direct-to-consumer sales, over-the-air
Tesla Automotive
software updates, and autonomous driving
tech.
Redefined short-form video content with AI-
driven algorithms, viral trends, and creator
TikTok Social Media
monetization, challenging YouTube and
Instagram.
Dominated remote work and virtual meetings
Communicati
Zoom with user-friendly video conferencing,
on
especially during the COVID-19 pandemic.
Built a B2B/B2C ecosystem (Taobao, Tmall)
E-commerce
Alibaba and digital payments (Alipay), empowering
(China)
SMEs in China’s online economy.
Simplified online payment processing for
Think..!
• Try to identify some digital
disruptors in Sri Lanka
Digital marketing can be
defined as:
• Achieving marketing objectives through
applying digital media data and technology
• In practice, digital marketing focuses on
managing different forms of online
company presence, such as;
• company websites
• mobile apps
• social media company pages
• All above integrated with online
communications techniques
Multichannel (omnichannel)
marketing
• Customer communications and product
distribution are supported by a combination
of digital and traditional channels at
different points in the buying cycle or ‘path
to purchase’.
• With the range of mobile and IoT
touchpoints, some have expanded the term
to omnichannel marketing.
Paid, owned and earned media
Media that is bought, involving investment to pay for
visitors, reach, or conversions through search, display
Paid Media ad networks, or affiliate marketing. Offline examples
include traditional media such as print, TV advertising,
and direct mail.
Media owned by the brand, including a company’s own
websites, blogs, email lists, mobile apps, or social
Owned
presence on platforms like Facebook, LinkedIn, or
Media
Twitter. Offline examples may include brochures or retail
stores.
Traditionally generated through PR efforts targeting
influencers to increase brand awareness. Includes word-
of-mouth stimulated through viral and social media
Earned
marketing, conversations in social networks, blogs, and
Media
Paid,
Owned &
Earned
media
Marketing technology landscape
Key Features of Digital
Marketing Strategy
• Interaction and integration between digital and
traditional channels are crucial.
• Digital strategy aligns with business goals and
focuses on clear objectives.
• It targets specific customer segments and
communicates a compelling value proposition.
• Utilizes a mix of online and offline communication
tools to attract and engage customers.
• Supports the customer journey from attraction to
retention and growth.
Components of Effective Digital
Marketing Strategy
• Aligns with Business Strategy: Integrates with long-term plans and sets annual
priorities.
• Sets Clear Objectives: Defines objectives for business and brand development.
• Targets Audience Effectively: Identifies and targets customers through digital channels.
• Communicates Value Proposition: Develops and communicates a differentiated value
proposition.
• Specifies Communication Mix: Determines the mix of online and offline tools for
engagement.
• Supports Customer Journey: Guides customers through the buying process across
channels.
• Manages Online Customer Lifecycle: Attracts, converts, and retains customers
effectively.
Applications of Digital
Marketing
• Digital media offer various opportunities for marketing
products and services across the purchase cycle.
• Example: Low-cost airlines utilize digital media and
technologies in several ways:
• Advertising Medium: Display ads on publisher sites
or social networks create brand awareness and drive
demand.
• Direct-Response Medium: Targeted search
advertising drives visits to the site when consumers
show intent to purchase.
Applications of Digital
Marketing
• Platform for Sales Transactions: Online flight booking is the
most common method for both consumers and business
travellers.
• Lead-Generation Method: Tools help identify and follow up on
corporate flight purchases.
• Distribution Channel: Airlines sell additional services like
insurance digitally.
• Customer Service Mechanism: Self-service options, such as
reviewing FAQs, are cost-effective.
• Relationship-Building Medium: Interacting with customers via
email newsletters and tailored alerts promotes repeat bookings.
Benefits of Digital Marketing
• Lets look at the CIM definition of marketing:
Marketing is the management process responsible for
identifying, anticipating and satisfying customer
requirements profitably.
• Identifying. The Internet can be used for marketing research to
find out customers’ needs and wants
• Anticipating. The Internet provides an additional channel by
which customers can access information and make purchases –
evaluating this demand is key to governing resource allocation to
e-marketing
• Satisfying. A key success factor in e-marketing is achieving
customer satisfaction through the electronic channel, which
raises issues such as is the site easy to use, does it perform
Ansoff
Matrix
Ansoff Matrix in Digital World
• Market penetration: The Internet can be used to sell more
existing products into existing markets.
• Market development: Here the Internet is used to sell into
new geographical markets, taking advantage of the low cost of
advertising internationally without the necessity for a
supporting sales infrastructure in the customers’ countries.
• Product development: New products or services are
developed that can be delivered by the Internet. These are
typically digital products.
• Diversification: In this sector, the Internet supports selling
new products, which are developed and sold into new markets.
Another perspective
• Geyskens et al. (2002) suggested an alternative
perspective
• 3 main forms of demand expansion for an existing
company when it adopts direct Internet channels
• Market expansion. This occurs when new segments
of customers are reached who did not previously buy
• Brand switching. This is done by winning customers
from competitors.
• Relationship deepening. This is selling more to
existing customers.
5-S of Digital Marketing Goals
Alternative Digital Business Models
Electronic commerce (e-
commerce)
• All financial and informational electronically
mediated exchanges between an
organisation and its external stakeholders.
• So e-commerce involves management not
only of online sales transactions, but also of
non-financial transactions such as inbound
customer service enquiries and outbound
email broadcasts, so you can argue that e-
commerce is open to all online
organisations.
Sell side E-Commerce & Buy Side E-
Commerce
Different forms of functionality of
digital presence
1. Transactional e-commerce - enables purchase of products or
services online
2. Services-orientated relationship-building for lead-building
and support - provides information to stimulate purchase and build
relationships
3. Brand-building - main focus is to support the brand by developing
an online experience of the brand and it is typically used for FMCG
brands
4. Publisher or media site - provides news, entertainment or
information or news about a range of topics and typically has an
advertising or affiliate revenue model
5. Social network or community -These sites or parts of sites C2C
model
Challenges of managing DM (based
on research)
• Planning. Nearly half (44 per cent) of businesses surveyed do not have a defined
digital plan or strategy although they are active in digital marketing, while nearly
half (49 per cent) also don’t have a defined marketing plan in the business
against which to align strategy.
• Organisational capabilities. Many businesses either already have introduced (30
per cent) or were planning to introduce (33 per cent) a digital transformation
programme, although a substantial number (37 percent) of businesses don’t
think it’s relevant for them.
• Integration of digital channels into marketing. Only a fifth of companies (20 per
cent) were happy with their level of integration of digital marketing and
traditional communications. The main barriers to integration are: lack of
integrated strategy and plans; teams structured in silos; and lack of skills in
integrated communications.
• ROI evaluation. A significant proportion (39 per cent) see opportunities from
digital marketing, but find ROI measurement challenging – a key area for
managers to address.
7 S Model for Digital Marketing
A generic
DM
strategy
developme
nt process