slide 4.1 chaffey et al., digital marketing: strategy, implementation and practice, 5 th edition ©...
TRANSCRIPT
Slide 4.1
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Part 2Digital marketing strategy
development
Chapter 4Digital marketing strategy
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Learning objectives
• What approaches can be used to create digital marketing strategies?
• How does digital marketing strategy relate to other strategy development?
• What are the key strategic options for digital marketing?
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Questions for marketers• Relate digital marketing strategy to marketing
and business strategy• Identify opportunities and threats arising from
digital technology platforms• Evaluate alternative strategic approaches for
using digital platforms
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Q. What are organisational problems if no E-marketing strategy?
• Underestimated demand for online services• Market share loss• Resource duplication• Insufficient resource• Insufficient customer data• Efficiencies available through online marketing• Opportunities for applying online marketing tols• Changes required to internal IT systems• Inadequate tracking• Senior management support limited
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Michael Porter on the Internet• ‘The key question is not whether to deploy
Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’
Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78.
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
What is a digital marketing strategy?
• What is strategy?–“Defines how we will meet our objectives”
–“Sets allocation of resources to meet goals”
–“Selects preferred strategic options to compete within a market”
–“Provides a long-term plan for the development of the organisation”
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Digital marketing strategy essentials• Digital marketing strategy is a channel strategy• Objectives for online contribution %
- sales, service, profitability should drive our strategy• Digital marketing strategy defines how we should:
1.Communicate benefits of using this channel2.Prioritise audiences targeted through channel3.Prioritise products available through channel4.Hit our channel leads & sales targets– Acquisition, Conversion, Retention
• Channel strategies thrives on differentials• BUT, need to manage channel integration
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.1 Internal and external influences on digital marketing strategy
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Table 4.1 Summary of typical focus for main types of e-commerce-related strategic initiatives
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.2 HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.3 Hierarchy of organisation plans including e-marketing plans
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.4 The SOSTAC® planning framework applied to digital Digital marketing strategy developmentSource: Chaffey and Smith (2008)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.5 Dynamic e-business strategy modelSource: Adapted from description in Kalakota and Robinson (2000)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Table 4.2 Summary of approaches used to support emergent strategy
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.6 Levels of website development in: (a) the information to transaction model and (b) the transaction to information model of Quelch and Klein (1996)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Table 4.3 Capability maturity model of e-commerce adoption based on Econsultancy (2008) research
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Corporate stage model
Stage 1.Unplanned
Limited
E-commercematurity stage
Strategy process and performance
improvement process
Structure:Location of E-
commerce
Senior management
buy-in
Marketing integration
Online marketing focus
Uncontrolledexperimentation
Limited DiscreteContent:
Brochureware
Stage 1.Unplanned
Low-levelobjectives
Diffuse AwareCommon initiatives
Traffic:visitor acquisition
Stage 2.Diffusemanagement
Stage 1.Unplanned
Specificorganisational
objectivesCentralised Involved
Annual planningcollaboration
Conversion & customer
experience
Stage 3.Centralised management
Stage 1.Unplanned
Refinedonline channelimprovement
DecentralisedDriving
performancePartnership Retention
Stage 4.Decentralisedoperations
Stage 1.Unplanned
Integratedmulti-channelimprovement
Integrated Integral CompleteWhole lifecycle
optimisation
Stage 5.Integrated &optimised
Source: E-consultancy (2005) report ‘Managing an E-commerce team’ Author: Dave Chaffey
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.7 A generic digital channel-specific SWOT analysis showing typicalopportunities and threats presented by digital media
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.8 An example of an digital channel specific SWOT for an established multichannel brand showing how the elements of SWOT can be related to strategy formulation
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.9 Will Wynne, Arena Flowers (www.arenaflowers.com)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Internet marketing benefitsTangible benefits• Increased sales from new sales leads giving rise to increased revenue from:
• new customers, new markets• existing customers (repeat-selling)• existing customers (cross-selling)
• Cost reductions from:• reduced time in customer
service • online sales• reduced printing and distribution costs of marcomms
Intangible benefits• Corporate image communication• Enhance brand• More rapid, more responsive marketing communications including PR• Improved customer service• Learning for the future• Meeting customer expectations • Identify new partners, support existing partners• Better management of marketing
information and customer information• Feedback from customers on products
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.10 Grid of product suitability against market adoption for transactional e-commerce (online purchases)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.11 An example of a performance measurement system for an e-commerce electrical goods retailerSource: Based on Friedlein (2002)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Table 4.7 An example of the relationship between objectives, strategies and performance indicators
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.12 Using the Internet to support different organisational growth strategies
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.13 Smile (www.smile.co.uk)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.14 Dell Ideastorm (www.ideastorm.com)Source: © 2012 Dell Inc. All Rights Reserved.
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Common online targeting options
– Brand loyalists – convert online– Not brand loyal – encourage trial– Most profitable – deepen relationships– Larger companies (B2B)– Smaller companies(B2B) – Key members of the buying unit (B2B) – Difficult to reach using other media
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.15 Stages in target marketing strategy development
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.16 Dell Singapore site segmentationSource: http://www.ap.dell.com/content/default.aspx?c=sg&1=en&s=gen. © 2012Dell Inc. All Rights Reserved.
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.17 Customer lifecycle segmentation
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.18 Euroffice e-mail (www.euroffice.co.uk)Source: Adapted from the company website press releases and Revolution (2005a)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.19 Alternative positionings for online services
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.20 WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates itsproposition
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.21 Strategic options for a company in relation to the importance of theInternet as a channel
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.22 Flow chart for deciding on the significance of the Internet to a businessSource: After Kumar (1999)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.23 Influences on customers of multichannel decision makingSource: adapted from Dholakia et al. (2010)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.24 Channel coverage map showing the company’s preferred strategy for communications with different customer segments with different value
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.25 Options for location of control of e-commerceSource: Econsultancy (2008)
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Figure 4.26 Example of risk–reward analysis
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Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013
Table 4.9 Online performance management grid for an e-retailer