Digital Marketing Essentials

Session 1Digital Campaign Planning

Learning Outcomes

At the end of this session, students should be able to;

• Explain the role of digital marketing within the marketing mix

• Explain the principles of digital marketing campaigns

• Define and explain the digital communication mix

Syllabus references 1.1, 1.2 and 2.1

Marketing Defined

‘Marketing is the process by which companies create value for customers and

build strong relationships in order to capture value from customers in return’

Kotler and Armstrong, 2008

Digital Definitions

• Digital Media: ‘Communications are facilitated through content and interactive services delivered by different digital technology platforms’

• Digital Marketing: ‘The application of the Internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives’

• Multichannel marketing: ‘Customer communications and product distribution are supported by a combination of digital and traditional channels at different points in the buying cycle’

Chaffey and Ellis-Chadwick, 2012

Key Marketing Communication Concepts

Marketing Communications Term

Definition Examples

Promotional Tools – The communications mix

Combination of five key communication tools

Advertising, sales promotion, PR, direct marketing, personal selling.

Media ‘Channels of communication that convey or deliver messages to target audiences’

6 main classes: broadcast, print, outdoor, digital, in-store, other media

Vehicle ‘an individual medium that can be selected to carry advertising messages’

Coronation Street, X Factor, Classic FM, Heart Radio, The Sunday Times Websites, Search Engines,

Adapted from Chaffey & Ellis-Chadwick, 2012 and Fill, 2009

The Changing Marketing Environment

Fragmenting Media

Diversity and complexity of choice

Multi-channel and omnichannel

AccountabilityRole of marketing

Corporate SocialResponsibility

Proliferation of digital media

Development & use of technology

Marketing

Converging Technology and

Media

Increased data and analytics

How the Marketing Mix is changing in the Digital Environment

The Marketing

Mix

Product:

Digital ValueExperiencing the

brandPrice:

Transparency

New pricing models

Place:

RepresentationNew Distribution

models

Multi-channel buying

Promotion:

Online Vs. Offline Mix

Integration

People:

Resourcing and training

Contact strategies

Physical evidence:

Online physical evidence

integration

Process:

Optimising internal and

external processes

through the web

Growth in Digital Media

• In 2002 less than £200 million was spent on UK internet advertising – in 2013, digital advertising spend has crossed the £6 billion mark

• In 2013 digital advertising increased by 15% on 2012 with mobile now accounting for 16% of all digital advertising spend compared to only 1.1% in 2009.

• While, display advertising representing 30% share of digital ad spend in 2013.

• Paid-for search marketing increased 14% from 2012 into 2013.

IABUK.net, 2014

Comparison of Traditional and Digital Media

Fill, 2013

Traditional Media Digital Media

One-to-many One-to-one and many-to-many

Greater monologue Greater dialogue

Mass marketing Individualised marketing

General need Personalised

Branding Information

Segmentation Communities

Benefits of Digital Media – Six I’s

Interactivity Customer initiated contact. Dialogue not monologue.

Intelligence Ability to collect low-cost marketing research.

Individualisation Personalisation of communications.

Integration Allows further scope for integrated marketing communications (IMC)

Industry restructuring Disintermediation and reintermediation and the effects on communication with intermediaries.

Independence of location Increasing reach of communications to global market.

Chaffey & Ellis-Chadwick, 2012

Reasons for Increased Significance of Digital in the Media Mix• Extended reach• Flattening frequency distribution (if audience viewing TV

ads are exposed to too many, it may decrease returns)• To reach different kinds of audiences• To provide unique advantages in stressing different

benefits based on different characteristics of each medium

• To add gross impressions if the other media is cost efficient

• Reinforce message by using different creative stimuli

Using Digital Media to Support Business Objectives

ReachBuild awareness on other sites and in offline media and drive to web presence

ActEngage audience with brand on its website or other online presence

ConvertAchieve conversion to marketing goals such as fans, leads or sales on web presences and offline

EngageBuild customer and fan relationships through time to achieve retention goals

Smartinsights.com, 2010, cited in Chaffey & Ellis-Chadwick, 2012

Principles of Digital Marketing Campaigns• Campaign (customer and market) insight • Goal setting and tracking • Segmentation and Targeting• Offer message and development • Budgeting and selecting the digital media mix • Integration into overall media schedule and plan

Chaffey & Ellis-Chadwick, 2012

Customer and Market Insights for Digital Campaigns

Examples of the types of customer and market insight from third-party research sources include:• Site audience reach and composition – breakdown of audiences on

different sites (Nielsen Netratings, Comscore, Hitwise. Alexa)• Online buyer behaviour and preferences• Customer media consumption – usage of different offline and online

media for different audiences (Hitwise)• Customer search behaviour – keywords research (Google Adwords

tool)• Competitor campaign activity – current advertising campaign and

previous seasonal campaigns (Ebiquity)• Competitor performance – reach and composition of competitor sites

(Hitwise)

Goals of Digital Marketing Campaigns

• Traffic building goals• Conversion and engagement goals• Third-party site reach goals• Multichannel marketing goals

Chaffey & Ellis-Chadwick, 2012

Objective Setting: The 5 S’s

Benefit of Digital Channel How benefit is delivered Typical Objectives

Sell – Grow Sales Achieved through wider distribution to customers can’t serve offline

• Increase online sales for product by 20% in year

• Increase conversion rate by 5% in 6 months

Serve – Add Value Achieved through giving customers extra benefits online

• Increase dwell time duration by 10% by 2015

• Increase no. of customers using online services by 30% by 2015

Speak – Get closer to customers

Creating a two-way dialogue through digital channels, gather research & information

• Increase social media followers/fans by 25% by 2015

Save – Save costs Through using digital technology (communications, sales, service transactions etc.)

• Increase web self-service to 40% of all service enquiries by 2015

Sizzle – Extend the brand online

Achieved through providing a new proposition and experience online

• Improve branding metrics such as brand awareness, reach, brand favourability

Chaffey & Smith, 2012

Objective Setting: Acquisition, Conversion and Retention

Acquisition Conversion Retention

Generate awareness of

product/service/brand and encouraging trial

Converting the consumer to a

customer and to on site outcomes

Encouraging customer loyalty and product/service/brand

advocacy

Search Engine MarketingBanner Advertising

Digital PRPartnerships/Affiliates

Online sales promotionsEmail

Social mediaReviews

Email Social media

Sales promotions

Segmentation and Targeting Approaches for a Digital Campaign

• Relationship with company • Demographic segmentation • Psychographic or attitudinal segmentation• Value • Lifecycle stage • Behaviour

Chaffey & Ellis-Chadwick, 2012

Campaign Response Mechanisms

Digital Media Creative

Home Page Microsite/landing page

Company social media

presence

Personal (chat or call back)

Offline: post, phone, store Mobile site/app

Chaffey & Ellis-Chadwick, 2012

Using Traditional Media To Drive Traffic To A Site

Range of response mechanisms for offline media:• Home page • Microsite of landing page • Microsite/campaign URLS (CURLs) • Social media pages

The 6 Key Digital Media Channels

1. Search Marketing• Search engine

optimisation (SEO)• Paid search (PPC)• Paid for inclusion feeds

2. Online PR• Publisher outreach• Community participation• Media alerting• Brand protection

3. Online Partnership• Affiliate marketing• Sponsorship• Co-branding• Link building• Widget marketing

Offline communications6. Direct mail 7. Exhibitions8. Merchandising9. Packaging10. Word-of-mouth

Offline communications1. Advertising2. Personal selling3. PR4. Sales Promotion5. Sponsorship

4. Interactive Ads• Site-specific media buys• Ad networks• Contra-deals• Sponsorship• Behavioural targeting

5. Opt-in email• House list email• Cold (rented lists)• Co-branded• Ads in third party

newsletters

6. Social media marketing• Audience participation• Managing social

presence• Viral campaigns• Customer feedback

Websites & Social

Presences

Offline CommunicationsOnline CommunicationsChaffey & Ellis-Chadwick, 2012

Benefits of Using Offline Communications

Offline communications are most effective in achieving four critical things:

• Reach• Brand awareness• Emotional connection with the brand• Explanation of the online value proposition

Issues in Using Offline Communications to Encourage Online Usage

• Higher cost • Higher wastage • Poor • Poorer accountability • Less personalised• Less interactive experience

Test your understanding

For an organisation of your choice, assess the effectiveness of the integration between the traditional communications and digital media channels that the organisation currently utilises.

Bibliography

• Brassington, F and Pettitt, S (2008) ‘Principles of Marketing’, Fourth Edition, Prentice Hall• Chaffey, D and Ellis-Chadwick, F (2012) “Digital Marketing: Strategy, Implementation and

Practice”, Fifth Edition, Prentice Hall.• IAB UK (2013) ‘UK digital ad spend up 12.5% to almost £5.5bn’, IABUK.net, http://

www.iabuk.net/about/press/archive/uk-digital-ad-spend-up-125-to-almost-55bn [accessed 11 April 13]

• Gay, R, Charlesworth, A and Esen, R (2007) ‘Online Marketing – A Customer-led Approach’, First Edition, Oxford University Press

• Fill, C (2013) ‘Marketing Communications’, Sixth Edition, Pearson. • Kotler, P and Armstrong, G (2008), “Principles of Marketing”, Twelfth edition, Pearson