A digital marketing 101 presentation which was given to an audience of business undergraduates at Warwick Business School.

1. Lecture 7
Digital Marketing
Daniel Chicksand and Lawrence Mitchell
Reading: Chaffey (2007), E-Business and E-Commerce Management,
3rd edition - Chapter 8

2. Introduction to session
What is marketing and the marketing concept?
What is digital marketing?
How is digital marketing used, what are the benefits
and trends?
The digital tool kit explained: acquisition, retention
and conversion
Case study

3. What is Marketing?
Marketing can be defined as “the management process
responsible for identifying, anticipating and satisfying
customer requirements profitably” (Chartered Institute of
Marketing)
Two distinct respects of the term marketing: 1) Specialist
functions: market research, brand/product management,
public relations, & customer service; 2) An approach: providing
a guiding philosophy for all functions in a business
The marketing concept unites these two meanings and is
broader than simply advertising and sales
Initiatives such as TQM, BPR, JIT and SCM emphasise the
importance of focusing all parts of the organisation on meeting
customer needs

4. What is Digital Marketing?
“The practice of promoting
products & services using digital
distribution channels in a timely,
relevant, personalised & cost-
effective manner
” (Chaffey, 2007) 4

5. Digital Marketing in Context

6. “The internet is biggest change
since the industrial revolution
”
Anon
6

7. 18.3 million homes online
+11%
7

8. Internet take up

9. Smart phone penetration
SOURCE: BMRB/Mintel

10. Social networking

11. Digital Marketing Theory
Digital marketing is direct marketing
through a new channel
http://www.youtube.com/watch?v=Br2KSsaTz
Uc&feature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQ
hpg&lf=mh_lolz

12. The REAN Model
Reach Engage Activate Nurture
The sources and How people A person taking a The method of
methods you interact with your preferred action. retaining and re-
use to attract business. engaging with
people to your Typical examples activated
offer. Engagement is include a person consumers.
essentially the purchasing a
Includes how process before an product, a (The activated
you raise action that helps newsletter consumer is a
awareness your prospect subscription or a person who has
among your come to a decision sign-up already taken at
target audience least one
preferred point
of action)

13. The REAN Model
Measurement at each step of the REAN Model
Reach Engage Activate Nurture
 Best traffic  Bounce rate  No. of downloads  No. of leads to
sources in terms  Ease of (white papers, CRM
of cost & volume navigation etc.)  Lead response
(search through  No. of registrations time
engines/keyword site/paths / form
analysis/cpc/ban through site
 Requests for
completions meetings / more
ners/email/newsl  No. of sales
etter/social
 Relevance of information
media/YouTube/li
information  No. / length of  Newsletter reads
 Usage of tools time watching  Training requests
nks/RSS
provided rich content
feeds/viral)  Survey response
 Successful / (video/music etc.)
failed internal  Banners clicked
 Demographics
/segments
searches  Registrations /
 Engagement by sales by traffic
/geographical
segment / source / segment
spread of visitors
source of traffic  Comments on
blogs/retweets

14. The new purchase model –
the need to be informed
An example of buying a washing machine from Qualitative Research
Pre- internet
Decision
Discussion John Discussion
Purchase
with Lewis with partner
partner John
Comet Lewis
With internet
ONLINE Google Cheap OFFLINE
Cheap
washing
AOL
AOL washing
machine John
John
Discussion machine
websites Lewis
Lewis
Discussion
Discussion with Decision
Decision
Google
Google shop
shop
with
with partner
partner
partner
John
Lewis Pop Lewis
John Comet
Pop Comet Purchase
Purchase
Lewis
Online ups Online
Lewis
ups
Online Online 14

15. Changing influences on decisions
PRODUCT
BRAND INFLUENCE WORD OF MOUTH
Mobile Outdoor
Email
Radio Personal
Sales Contacts
Prom Web TV
Direct Print
15

16. Changing influences on decisions
PRODUCT
WORD OF MOUTH
Social
Networks
BRAND INFLUENCE
Mobile Outdoor Persona Blogs
Reviews
l
Email Contact
Radio Networks Forums
Sales s
Prom Web TV
Direct Print
16

17. Who do you trust?
17
Source: aolbrandnewworld.com / all internet users

18. Influence of Forums
18

19. 10 aspects of Digital that are different
1. 24/7 A trading website is always open. There is no downtime
to restock, correct programming errors or repair
broken links to other business systems.
2. Marketing in real time A website deals with customers in real time, raising
expectations of instant query resolution, immediate
response to requests and even faster delivery.
Customer interaction data is being gathered
continuously.
3. Personalisation Personalisation of a website is different from print. It
must be based on a variety of data sources (e.g.
clickstream, personal data and previous purchases)
4. Data volumes and Much higher volumes of data of different types than can
integration be collected and measured. Real-time testing of
everything: list, creative, offers, format, timing
5. Many-to-many Customers do not phone call centres for a chat. The
communications internet is different. It is open, democratic and even
revolutionary. Customers can do a brand a lot of 19
damage

20. 10 aspects of Digital that are different
6. Comparison Shopping Never was comparison shopping so easy. Pricing policy
may need to be changed?
7. Global reach The reach of the website is wide but logistical or legal
constraints may apply.
8. Keeping in touch A brand can use digital to improve efficiency by reducing
the amount of human involvement. Eg:
autoresponders, email/text reminders, FAQs,
customer forums
9. Low transaction costs The cost of handling online orders and information
requests, as well as of email solicitation, is much
lower. But, credit card payment queries will be high
and delivery costs will remain the same
10. A website has both Like a catalogue, a website link can be sent to a list of
shop & catalogue prospective customers. Like a shop, it must wait for
characteristics them to call in. Unlike a high street shop, it is not
visible to passers-by and is dependant on
promotion. 20

21. Spiral of Prosperity
More Profits More
Investment Analyse Database
Increase
Customer Value
Identify Prospects
Cross-sell, Up-sell,
Renewal
Target Media
Talk to Key Customers
Sell Products Regularly
Get Customer Build Database and
Information Analyse
21

22. Digital Marketing Practice

23. 23

24. Email Marketing
• Growth in sophistication from spray & pray
• Still lots of shouty emails & bad practice
• Integrates well with other channels
• Cheaper than other channels
• Quick to market
• Encourages immediate action
• Very personal

25. To be successful
• Get permission
• Select the right broadcast platform
• Segment audience
• Relevant & engaging
• Design for images or without
• Test & measure
• Use email as part of life-cycle programme, rather
than single message

27. Email Newsletters

28. Lead Generation Email Campaign
Email Opens Clicks
1 1,284 380
2 1,286 268

29. 29

30. Online Display
• Most similar to press advertising
• Lots of creative formats to chose from (eg video,
animation)
• Low cost reach
• Different targeting options

31. To be successful
• Segment audience
• Plan like offline
• Test different creative formats
• Compare results to benchmarks
• Link to relevant landing page

32. 32

33. Creative formats

35. The campaign: Heinz Easy-Pots
Visitors click to go to a
landing page on the
Heinz Food

36. Content Marketing
•16 page ebook produced
•Promoted via online display
•Users asked to register
•List qualified
36

37. 37

38. Search
• 3 basic processes: collecting (crawling), indexing &
ranking
• Two types of search: natural & paid
• Highly targeted & very important
• Complex & dynamic
• Paid search benefits include:
– Quick to implement
– Pay for what you get

39. A search engine does three basic things…
A day at the office… for an average search engine
1. Collect 2. Index 3. Rank users Search results

40. Search
• 3 basic processes: collecting (crawling), indexing &
ranking
• Two types of search: natural & paid
• Highly targeted & very important
• Complex & dynamic
• Paid search benefits include:
– Quick to implement
– Pay for what you get

41. Search Engine Results Page
Sponsored Sponsored
results results
PAID PAID
Organic
results
FREE
SEO affects only
the organic search results

42. Search
• 3 basic processes: collecting (crawling), indexing &
ranking
• Two types of search: natural & paid
• Highly targeted & very important
• Complex & dynamic
• Paid search benefits include:
– Quick to implement
– Pay for what you get

43. A very important channel
90% of the business users claim that their product or service
search starts online.

44. To be successful
• Know rules
• Keyword research, selection & targeting
• In-bound links from quality sites
• Internal linking
• Unique content which can be found
• Keywords embedded in heading & body tags
• Relevant landing pages
• Ongoing investment, analysis & optimisation

45. 45

46. Social Media
• Huge part of the web: 200m blogs; 20% of searches
result in UGC, 1 in 3 Brits on Facebook
• WOM always important – now on epic scale
• Grouped into social news, social networks & UGC
• Powerful form of communication
• Brands are at risk as consumers can be very critical
• Can build awareness very quickly
• Very difficult to control

47. To be successful
• Strategy for listening, monitoring & responding
• Identify & connect with influencers
• Integrate social media with other channels
• Encourage UCG on forums & blogs
• Create a blog
• Presence on main social networks: Facebook,
LinkedIn, YouTube & Twitter
• Identify niche forums
• Create content that is likely to be shared

48. Social Media
http://www.youtube.com/watch?v=Q7osB5EC2rU

49. Integrated Media
• Live in a multi-channel world
• Multi-channel marketing isn’t new
• All about getting all channels to support each other,
both offline & online
• Digital channels integrate well and help each other:
– Seeing display ads could result in more brand searches
– Adding an email to follow-up DM could boost the DM
response
– Press releases can be used to generate links and build
natural search rankings

50. Twitter
Voucher
Facebook
Voucher
50

51. 51

52. Strategic Foundations
52

53. Customer Focus
Use personas to ensure a common understanding
Understand their buying process & buying
experience:
http://www.youtube.com/watch?v=3Sk7cOqB9Dk&fe
ature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh
_lolz
Many research methodologies available:
Surveys
Depth-interviews
Focus groups
53

55. Customer Focus
Use personas to ensure a common understanding
Understand their buying process & buying
experience:
http://www.youtube.com/watch?v=3Sk7cOqB9Dk&fe
ature=BFa&list=FLqzRVPF7O1Pf5UFrIMzQhpg&lf=mh
_lolz
Many research methodologies available:
Surveys
Depth-interviews
Focus groups
55

56. 56

57. Data Strategy
• Digital is a very measurable channel
• Must be prepared for significant levels of data
analysis to fully take advantage
• Data available includes: clickstream, registration,
transactional, opinions, search, competitive
• Attribution is a hot, hot topic
• All about outcomes:
– Micro conversions – clicks, uploads, comments,
registrations
– Macro conversions – leads, direct sales
• To make data work, need philosophy, technology &
process 57

58. Planning has never been more
important
• Key questions to ask: where are we now? Where do
we want to be? How are we going to get there?
• Useful framework to work within is SOSTAC:
– Situational analysis
– Objectives
– Strategy
– Target market
– Action
– Control & measurement

59. Identify metrics to track progress
Step 7 Lifetime value
What’s
Step 6 Branding Metrics the life-time
value
Step 5 Campaign ROI (%) based on
AOV?
Step 4 Cost per acquisition (CPA)
How much can
I afford to pay
Step 3 Cost = Cost per click (CPC) for them?
Step 2 Quality = Conversion rate What conversion
rate do I expect?
Step 1 Volume = Unique visitors reach (%)
How many visitors do
I need?
59

60. Case Study
60

61. We cover 3 major markets:
 Chemicals
 Energy  Fertilizers
 Olefins
 Oil Sulphur
 Aromatics
 Gas Nitrogen
 Plastics
 Power
 Solvents  LNG
 Intermediates
“Trusted market intelligence for the
global petrochemical, energy and fertilizer
industries””

62. The Challenge
To grow 3 key metrics:
£ % of qualified leads
becoming sales
£ Newleads vs target
from
business revenue
£ Averagelead to salefrom
qualified
lead time

63. Decision Making Cycle
Motivation Intention Decision point Preference
(Justification) (Doubt) (Risk perception) (Comparisons)
Unaware Aware Consideration Decision
Relevant content
Blogs White Papers “How to” guides Brochure
Podcasts Case Studies Online tour Key USPs
Competitor
Videos Product Videos Testimonials comparisons
News Webinars

64. Promoting & Sharing the Content

65. Results
Fewer, higher quality leads:
✔% of qualified leads becoming sales
Increased by 16% 2011 (YTD) vs 2010
✔ New business revenue from leads vs target
Up 5% on 2011 budget
✔ Average lead time from qualified lead to sale
Reduced by 7% 2011 YTD vs 2010

66. Lecture 7
Digital Marketing
Daniel Chicksand and Lawrence Mitchell
Reading: Chaffey (2007), E-Business and E-Commerce Management,
3rd edition - Chapter 8