2. CLASSROOM ETHICS
• Participation
• Breaks (15 minutes)
• Punctuality and Attendance
• Mobile phones
• Lecture format – Lecture on Topics,
Classroom Activity,
• Resources – (Books, eBooks, articles,
newpaper articles)
3. LEARNING OUTCOMES (LO)
By the end of the module, students should be able to:
LO1 Analyse the marketing environmental factors that might affect an organisation’s
digital marketing strategy.
LO2 Describe how digital marketing strategy relates to marketing strategy
development.
LO3 Apply the elements of the marketing mix on the Internet.
LO4 Explain how Electronic Customer Relationship Management (E-CRM) can be
used to support customer engagement.
LO5 Identify and discuss the factors for designing an effective website, mobile site
or social media presence.
LO6 Discuss the advantages and disadvantages of various digital media channels.
LO7 Explain how to measure and improve the effectiveness of digital marketing.
4. SYLLABUS OUTLINE
1) Introduction to digital marketing.
2) The digital marketing environment.
3) Digital marketing strategy.
4) Elements of the online marketing mix.
5) Electronic Customer Relationship Management (E-CRM) and social
CRM.
6) Website design and user experience.
7) Digital marketing campaign planning.
8) Digital channel media: Search Engine Optimisation (SEO), e-mail
marketing, affiliate marketing, viral marketing and other social
media.
9) Evaluation and improvement of digital marketing effectiveness.
7. STRATEGIC QUESTIONS FOR E-
MARKETERS
• How are the elements of the marketing mix varied online?
• What are the implications of the Internet for brand development?
• Can the product component of the mix be varied online?
• How are companies developing online pricing strategies?
• Does ‘place’ have relevance online?
• How does communication online work strategically?
8. THE MARKETING MIX
In 1963 Bartels said:
‘a marketer is like a chef in a kitchen … a mixer of ingredients’
• Variables used to define key elements of marketing strategy
• From the 4Ps of Jerome McCarthy to the 7Ps of Booms and Bitner,
sometimes referred to as the services mix
Marketing Mix
• 4Ps – Product, Price, Place, Promotion
• 7Ps – the 4P’s + People, Processes and Physical Evidence
9. “THE OFFERING”
OFFERING
• Product, packaging, service and brand
• What do you have to OFFER the customer?
• What does this OFFER do to other stakeholders in the value chain?
10. THE 4PS AND THE 4CS
Product Place
Price
Promotio
n
Cost
Communicati
on with
Company
Customer
needs and
wants
Customer
convenience
11. INCORPORATING THE MIX ONLINE
Which variables are important for the ideal customer?
• Price and quality?
• Where they buy?
• You need to decide on target markets first and do the research on
the mix variables
• Remember the mix is not generic for all customers, but for
segments
13. PRODUCT INTRODUCED
‘The element of the marketing mix that involves researching
customers’ needs and developing appropriate products’
• Core product
– The fundamental features of the product that meet the user’s needs.
• Extended product
– Additional features and benefits beyond the core product.
14. EXTENDED PRODUCT OPTIONS
Examples:
• Add-on services – gift wrapping @ Amazon
• Endorsements
• Awards
• Testimonies
• Customer lists
• Customer comments
• Warranties
• Guarantees
• Money back offers
• Customer service (see people, process and physical evidence)
• Incorporating tools to help users during their use of the product
• Information – extranets
15. BRANDS
A brand is described by Leslie de Chernatony and Malcolm McDonald in their
classic book 1992 book Creating Powerful Brands as
‘an identifiable product or service augmented in such a way that the buyer or
user perceives relevant unique added values which match their needs most
closely.
Furthermore, its success results from being able to sustain these added values
in the face of competition’.
17. PRICE IMPLICATIONS
View 1 – decreased prices inevitable
• Price transparency
• Customer knowledge increases
• Price reduction and standardization
View 2 – decreased prices unnecessary
• 89% purchase books from first site
• Only 10% are aggressive bargain hunters
• For corporate buyers internal changes are main benefit
18. DIFFERENTIAL PRICING
• Precision
– Setting prices more accurately through testing (price indifference band)
• Adaptability
– Rapid changes (dynamic pricing).
– e.g. Concert tickets
• Segmentation
– Different charges according to profiling
19. MANY WAYS TO PRODUCE REVENUE
ONLINE
• Purchase
• Rental or subscription
• Pay per use
• Online advertising sales
(banners, pop-ups)
• SPAM (junk e-mail)
20. PRICING OPTIONS
Cost-plus
• Add profit margin to operational costs
• Target profit pricing
– Based on breakeven
• Competition-based pricing
• Market-oriented
– Premium-pricing
–Penetration pricing
21. VIEW OF “PLACE”
Reach: This is the potential audience of the e-commerce site. Reach can be increased by
moving from a single site to representation with a large number of different
intermediaries. Allen and Fjermestad suggest that niche suppliers can readily reach a
much wider market due to search engine marketing
Richness: This is the depth or detail of information which is both collected about the
customer and provided to the customer. This is related to the product element of the mix.
Affiliation: This refers to whose interest the selling organization represents – consumers
or suppliers. This particularly applies to retailers. It suggests that customers will favor
retailers who provide them with the richest information on comparing competitive
products.
22. PROMOTION
‘Promotion unfortunately has a range of meanings. It can be
used to describe the marketing communications aspect of the
marketing mix or, more narrowly, as in sales promotion.
In its very broad sense it includes the personal methods of
communications, such as face to face or telephone selling, as
well as the impersonal ones such as advertising.
When we use a range of different types of promotion – direct
mail, exhibitions, publicity, etc we describe it as the
promotional mix.’
23. PROMOTION TOOLS
• Advertising (broadcast, print, outdoor)
• Sales promotion (prizes, gifts, contests)
• Personal selling (face-to-face or voice-to-voice)
• Public relations (relationship & communication with important
“publics”)
• Direct marketing (SPAM, pop-ups, offers)
24. PEOPLE
Auto responders:
These automatically generate a response when a company e-mails an
organization, or submits an online form.
E-mail notification:
Automatically generated by a company’s systems to update customers on the
status of their order, for example, order received, item now in stock, order
dispatched.
Call-back facility:
Customers fill in their phone number on a form and specify convenient time to be
contacted. Dialing from a representative in the call center occurs automatically at
the appointed time and the company pays which is popular.
25. PEOPLE
Frequently Asked Questions (FAQ):
For these, the art is in compiling and categorizing the questions so customers can
easily find (a) the question and (b) a helpful answer.
On-site search engines:
These help customers find what they’re looking for quickly and are popular when
available. Site maps are a related feature.
Virtual assistants:
Come in varying degrees of sophistication and usually help to guide the customer
through a maze of choices.
27. READING LIST
Essentially Reading
Chaffey, D. and Ellis-Chadwick, F., 2010. Digital marketing: implementation and
practice.
Additional Reading
Chaffey, D., Smith, P.R. and Smith, P.R., 2013. eMarketing eXcellence: Planning and
optimizing your digital marketing. Routledge.
Ryan, D. and Jones, C., 2009. Understanding Digital Marketing: Marketing Strategies
For Engaging The Digital Generation. Great Britain & United Stated: Kogan Page
Limited.
Kwok, L., Tang, Y. and Yu, B., 2020. The 7 Ps marketing mix of home-sharing
services: Mining travelers’ online reviews on Airbnb. International Journal of
Hospitality Management, 90, p.102616.
