Slide 4 1 Part 2 Digital marketing strategy

Slide 4. 1 Part 2 Digital marketing strategy development Chapter 4 Digital marketing strategy Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 2 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? Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 3 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 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 4 Q. What are organisational problems if no Emarketing 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 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 5 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. Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 6 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” Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 7 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. 2. 3. 4. Communicate benefits of using this channel Prioritise audiences targeted through channel Prioritise products available through channel Hit our channel leads & sales targets – Acquisition, Conversion, Retention • Channel strategies thrives on differentials • BUT, need to manage channel integration Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 8 Figure 4. 1 Internal and external influences on digital marketing strategy Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 9 Summary of typical focus for main types of e-commerce-related strategic initiatives Table 4. 1 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 10 Figure 4. 2 HSBC Expat Explorer (http: //www. expatexplorer. hsbc. com) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 11 Figure 4. 3 Hierarchy of organisation plans including e-marketing plans Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 12 The SOSTAC® planning framework applied to digital Digital marketing strategy development Figure 4. 4 Source: Chaffey and Smith (2008) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 13 Figure 4. 5 Dynamic e-business strategy model Source: Adapted from description in Kalakota and Robinson (2000) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 14 Table 4. 2 Summary of approaches used to support emergent strategy Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 15 Levels of website development in: (a) the information to transaction model and (b) the transaction to information model of Quelch and Klein (1996) Figure 4. 6 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 16 Capability maturity model of e-commerce adoption based on Econsultancy (2008) research Table 4. 3 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 17 Corporate stage model Source: E-consultancy (2005) report ‘Managing an E-commerce team’ Author: Dave Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 18 A generic digital channel-specific SWOT analysis showing typical opportunities and threats presented by digital media Figure 4. 7 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 19 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 Figure 4. 8 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 20 Figure 4. 9 Will Wynne, Arena Flowers (www. arenaflowers. com) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 21 Tangible benefits Internet marketing benefits Intangible benefits • Increased sales from new sales leads giving rise to increased revenue from: • new customers, new markets • existing customers (repeatselling) • existing customers (crossselling) • Cost reductions from: • reduced time in customer service • online sales • reduced printing and distribution costs of marcomms • 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 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 22 Grid of product suitability against market adoption for transactional commerce (online purchases) Figure 4. 10 e- Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 23 An example of a performance measurement system for an -commerce electrical goods retailer Figure 4. 11 e Source: Based on Friedlein (2002) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 24 An example of the relationship between objectives, strategies and performance indicators Table 4. 7 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 25 Figure 4. 12 Using the Internet to support different organisational growth strategies Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 26 Figure 4. 13 Smile (www. smile. co. uk) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 27 Figure 4. 14 Dell Ideastorm (www. ideastorm. com) Source: © 2012 Dell Inc. All Rights Reserved. Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 28 Common online targeting options – Brand loyalists – convert online – Not brand loyal – encourage trial – Most profitable – deepen relationships – Larger companies (B 2 B) – Smaller companies(B 2 B) – Key members of the buying unit (B 2 B) – Difficult to reach using other media Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 29 Figure 4. 15 Stages in target marketing strategy development Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 30 Figure 4. 16 Dell Singapore site segmentation Source: http: //www. ap. dell. com/content/default. aspx? c =sg&1=en&s=gen. © 2012 Dell Inc. All Rights Reserved. Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 31 Figure 4. 17 Customer lifecycle segmentation Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 32 Figure 4. 18 Euroffice e-mail (www. euroffice. co. uk) Source: Adapted from the company website press releases and Revolution (2005 a) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 33 Figure 4. 19 Alternative positionings for online services Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 34 We. Buy. Any. Car (www. webuyanycar. co. uk) clearly communicates its proposition Figure 4. 20 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 35 Strategic options for a company in relation to the importance of the Internet as a channel Figure 4. 21 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 36 Figure 4. 22 Flow chart for deciding on the significance of the Internet to a business Source: After Kumar (1999) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 37 Figure 4. 23 Influences on customers of multichannel decision making Source: adapted from Dholakia et al. (2010) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 38 Channel coverage map showing the company’s preferred strategy for communications with different customer segments with different value Figure 4. 24 Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 39 Figure 4. 25 Options for location of control of e-commerce Source: Econsultancy (2008) Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 40 Figure 4. 26 Example of risk–reward analysis Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013

Slide 4. 41 Table 4. 9 Online performance management grid for an e-retailer Chaffey et al. , Digital Marketing: Strategy, Implementation and Practice , 5 th edition © Pearson Education Limited 2013