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Digital Marketing Strategy
What is a Strategy?
A plan of action designed to achieve a
particular goal.
What is Digital Marketing?
It aims to create demand using the
power of the Internet.
It is
measurable.

It gives brands
opportunity to
build tailored,
optimised brand
experiences


          Image credit: Living Shadow from Wikimedia Commons
          http://commons.wikimedia.org/wiki/File:Tape_measure_colored.jpeg
So then, what is a Digital
MarketingStrategy?
Builds on
traditionalmarketingstrategy, using
the benefits and challenges within the
digital medium.
Integrated online and offline strategies
are key.

They speak to an overallbrandidentity
which is vital to achieve an
organisation‟s goals.
Strategy is about choices
The brand that
attempts to be all
things to all
people
riskslosing the
clarity of its value
proposition.




                       Image credit: D Sharon Pruitt
Consider the factors that affect your
business.
For example:

•Market
•Competitor landscape
•Customers
•Core competencies
The Internet has changed traditional
marketing models...
Porter’s 5 Forces




                    The 4 P’s
The 4P’s: product, price, placement and
promotion; and Porter 5 Forces
analysis have been re-examined and
adapted.
The Internet allows for new
ProductsandServices.
They can be customised en masse, e.g.
NIKEiD (http://nikeid.nike.com).
Pricing information is accessible on
comparison websites.
(www.pricerunner.co.uk and
www.nextag.com)
Businesses need to differentiate on
value – customers may pay a higher
price for better value.
Placementand distribution is no longer
determined by location (online bookings,
eTicketing, mail order etc.).
Various technologies (APIs, SOAP
services, RSS and XML) allow
information and services to be
distributed throughout the world.
Promotion online can be tracked,
measured and targeted more
effectively.
The new P: People

Allows for personalisation, peer-to-
peer sharing, communities and
consumer-centric organisations.
Seth Godin recommends these five
elements:

•Data
•Stories
•Products
•Interaction
•Connection
Data:

The raw facts about your product or
service.

Online data is richer than ever before!
Stories:

Markets are „conversations‟.
Brands create stories.
Products:

Physical manifestations of your story.
Interactions:

Tactics to connect with consumers.
Comprise touchpoints of the brand.
Connection:

Like the 5th „P” – people „fall in love‟
with your brand.
Creating and implementing a
strategy.
Must cover:

•Who you are
•What you are offering
•Who you are offering it to
•Why and how you are doing this
Consider context.

Understand your business and market.
Use a
SWOTanalysis
:

•Strengths
•Weaknesses
•Opportunities
•Threats
Objectives:

Consider creativity and technology.
These should speak to the system AND
the story.
They should also be aligned with the
greater strategic objectives of your
brand.
Value exchange:

•What value are you adding to the
market?
•What constitutes success?
•How do you measure this?
Tactics...The how.

The strength of the tools is dependent
on the type of objectives set.
Metrics:

How will you measure value exchange?

These are the key performance
indicators (KPIs).

Set them up early on!
Ongoing optimisation:

Monitor, measure, experiment, learn, be
proactive!
Google Insights; Flickr; Delicious; Spyfu; Quirk
SearchStatus; SEO Book’s Rank Checker; Change
Use tools to gather data:
Detection; Google Alerts; BrandsEye; Google Patent
Search; Google Adwords External Keywords Tool;
Google Trends; YouTube Selection Tool, etc.
Market Research
What is market research?
Gathering, recording and analysing
data and information about customers,
competitors and the market.
Primary research data is information
gathered for a particular product or
hypothesis.
When information does not exist/is
not accessible, and needs to be
specifically collected.
For example:
Surveys, focus
groups, research
panels and
research
communities.
Secondary research data is existing,
published data and research.
Often more cost-effective than
primary research and the Internet opens
a wealth of resources.
Quantitative research is numerical
data to demonstrate statistically
significant outcomes.
Qualitative research:

•Exploratory

•Identifies potential hypotheses

•Seeks to find out potential consumer
perceptions and feelings
The Internet was originally a tool for
academics to share information.
Now used by consumers to:

•Research products and companies
•Gather information
•Compare pricing
So now it is a useful tool for primary
and secondary research.

AND

It can be used to gather both
qualitative and quantitative data.
It can be used to easily and accurately
conduct surveys.
Consumers‟ online habits
can be recorded
through web searches,
online surveys, online
reputation
management tools,
etc.
Online tools and research methods =
broader, faster and more detailed
forms of information gathering.
The Internet vs. traditional market
research
Internet market research:

•Is cost-effective
•Targets a large number of people
But it can lead to sample error if not
carefully planned and managed.




                            Image Credit: Tim Davies
Data is only meaningful if it is
representative.
So consider:

•The nature of the study
•The validity and legitimacy
•Goals and expectations
Use web analytics tools and online
reputation management (ORM) in
online market research.




They play a big role in providing data.
Research Methodology
•Establish goals
•Determine your sample
•Choose data collection method
•Collect data
•Analyse results
•Produce reports
Primary and secondary research
Secondary research should:

•Precede primary research
•Uses data that already exist for
analysis
•Be considered in solving the problem
Use:

•Web analytics data, customer
communications data, social networks
etc.
•Search tools - www.google.com and
advanced tools -
http://www.google.co.za/advanced_search?hl=en
•Research publications online
Primary research can be qualitative or
quantitative:

•Explore a market
•Develop the hypotheses or research
questions (qualitative at this stage)
e.g. online research communities:

•Can be used to identify unmet
customer needs

•And brainstorm possible solutions
Then use quantitative research to
investigate further!
There are numerous data collection
methods:

Focus groups; interviews; research
communities etc.
Technology and
Online surveys:

•Data captured
immediately
•Analysis is quick
•And they‟re cost
effective!
Technology means they can also be
more user-friendly.
Types of Questions.

Open ended:


What features would you like to see on the website
for the eMarketing textbook?
Closed-ended:


 Do you use the eMarketing textbook website?
 Choose one that applies.

   Yes
   No
Ranked or ordinal questions:

 Rate the features of the eMarketing textbook
 website, where 1 is the most useful and 4 is the
 least useful.

    Blog
    Case studies
    Free downloads
    Additional resources
Matrix and rating types:
They can be balanced or unbalanced –
determining whether someone can express a
neutral opinion or not.
Offer incentives to get a response.
Assure respondents of the time
commitment, and privacy
implications.
7 steps to conducting surveys.

1.   Establish goals
2.   Determine sample
3.   Choose methodology
4.   Create questionnaire
5.   Pre-test
6.   Gather data
7.   Analyse
Use free tools:

e.g. 4Q Surveys - http://www.4qsurvey.com/
What about sample error?
Design is crucial - test and run pilots.
Ensure respondents don‟t become
desensitised.
Limit respondents to being interviewed
once every six months to stop
incentives affecting data.
Also consider who you are targeting.
What is the best way to reach them?
Case Study
www.brandseye.com
Online reputation management service,
BrandsEye, needed to revamp its
interface to suit its evolving user‟s
needs.
In 2010, they sought to find out exactly
what the market wanted from the
product.
To gather data they used:

•Focus groups
•Personal, one-on-one interviews
•Online conversation monitoring
•Active online engagement
They gathered:

•Qualitative data from the users
directly
•Quantitative data from online
mentions (using the BrandsEye tool
itself)
So they could:

•Direct the business development
•Prioritise software changes
•Direct resource allocation
BrandsEye approached key clients to
gauge reaction and get input, and
plotted results on a persona matrix.
They created a hypothesis, and
continually tested it.
Users were able to critique BrandsEye
features while it was still in Beta.
This allowed BrandsEye to get over 200
pieces of functional feedback on the
system.

They solved upward of 77% of these
items in the first week.
When BrandsEye Version 2 launched in
early February 2011, it received more
than 700 tweets in three days and
more than 20 press articles in the
same time.
Crowdsourcing
What is it?




              Image credit: Alexander Kesselaar
“Crowdsourcing is the act of taking a
task traditionally performed by an
employee or contractor and
outsourcing it to an undefined,
generally large group of people in
the form of an open call” (Wikipedia).
Its not a new idea…

The 19th century Oxford English
Dictionary was crowdsourced.
In 1714 the Longitude prize was
awarded for the simplest solution for
determining a ships longitude.
Then came the Internet
Now the crowd:

•Is larger
•Is more connected
•Offers more levels of skill for
contributions
The Internet:

•Provides a global distribution
channel
•Allows for fasterpublishing
•Means ideas are now regulated by
value
Organisations can gaininsight into their
customers‟ needs and desires and
buildproducts and services that
meetthem.
Commercially clients can:

•Pay once-off for numerous solutions
•Pay only for solutions they use
•Not limit themselves to „traditional‟
solutions


                        Image Credit: Creative commons, AMagill
Non-commercially the crowd can
create a poolofinfo and ensure it is
accurate.
e.g. Wikipedia:
http://www.wikipedia.org
Early adapters of crowdsourcing:

Threadless (www.threadless.com)
iStockphoto (www.istockphoto.com)
InnoCentive (www.innocentive.com)
The “rise of the amateur”
An idea that took tenminutes to come
up with may be as good or better than
one that took ten hours to develop.
Fourtypes of crowdsourcing:

•Invention
•Creation
•Organisation
•Prediction
Invention – sourcing ideas for new or
existing product development.
e.g. My Starbucks Idea
(www.mystarbucksidea.com)
Creation – new content created, owned
and maintained by a community on an
existing platform.
e.g. Idea Bounty
(www.ideabounty.com).
Organisation – Create new content by
organising already existing content.
e.g. Digg (www.digg.com)
Prediction – predict trends by asking
the community to submit ideas and vote.
e.g. Yahoo! Buzz (www.yahoo.com/buzz)
How does it work in business?
•To developproducts
•For newbusiness and initiatives
•To communicateideas
•Prediction and forecasting
Twoapproaches to managing a
campaign:
1. Centrally located:

A guidingforce is used to channel ideas
and formalise the process.
2. Community controlled:

The community controls the process
and the outcome.
The Community
•The most important asset in
crowdsourcing
•Aim to understand why they exist
and what motivates people to participate
It is vital to understand and address
community needs:

•How should it be managed?
•What rewards should be put in place?
Pros of crowdsourcing
•Consumer involvement
•Fresh input
•Opportunities and connections that did
not exist before
•Problems can be explored quickly at low
cost
•Only pay for what is used
•Tap into a range of talent outside
internal resources
•Gain valuable insight into the desires of
their customers
Cons of crowdsourcing
•Lack of agency guidance or strategic
direction
•Little control over production value
•For spec work the risk/reward ratio is
high
•Ethics and opinions could be
questionable, leading to incorrect
assumptions of reliability
•IP of work is often disregarded with no
written contracts etc.
•Added costs may be needed to bring a
project to a conclusion
•Lack of financial motivation or reward
may lead to lower work quality
•Difficulties may arise in maintaining a
working relationship with the community
The new agency model
Marketing and branding are nolonger
owned and managed by one agency.
Through crowdsourcing,
amateurs can now
communicate ideas to
global brands.

This generatesPR and direct
interaction with a consumer
                              Image credit: ming888


base.
But a marketing agency will still be
needed for brand strategy
development.
Remember...
•Proper planning is essential!
•Remunerate communities
adequately to avoid a negative PR
backlash
•Use crowdsourcing to tap into the
collective knowledge of more than
one billion people

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