Chapter

1
Introduction to digital marketing

This chapter introduces what we see as the fantastic potential of integrated

digital marketing for engaging audiences and its risks. It introduces the
difference between e-commerce, digital business and digital marketing; the
alternative digital communications channels; the dangers of sloppy digital
marketing; how to present a business case for increasing your online
activities, and the benefits of doing so – Sell, Serve, Speak, Save and
Sizzle.
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Introduction

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Situation – the connected world

Digital marketing
MARKETPLACE platforms
• Desktops, laptops and
notebooks
• Mobile phones and
tablets
• Other
Electronic hardware
marketspace

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Situation – B2C, B2B, C2B and C2C

Types of online presence

Chaffey & Ellis (2015)

1. Transactional e-commerce site

2. Services-oriented relationship
building or lead-generation web
site
3. Brand-building site
4. Portal of media site
5. Social network or community
site
Figure 1.3 Options for online communications between an organization and its
customers
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Situation – digital marketing definitions

E-commerce
Selling online and the ability to

Dynamic dialogue
transact online

Digital marketing
+ =

Customers &
Customer driven discipline

Suppliers
Digital business
Involves the automation of all the
business processes in the value
chain

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Situation – digital marketing definitions

Integrated digital marketing

activities
Activities that require planning,
management and optimization for
online marketing to be competitive
and maximize ROI.

Figure 1.5 Eight key digital marketing activities to manage in all

organizations
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Situation – digital marketing definitions
Right touching = every customer interaction to a communication should be followed up by a
series of relevant communications delivered via the right combination of channels to elicit a
response or further dialogue

Checklist for right

touching Delivering relevant
Search
recommendations for retention and
marketing
growth
Behavioural targeting or online
advertising Following up on customer product or
promotion interest
Multi-touches across different digital media
channels for acquisition Getting the frequency right

Customer lifecycle model and welcome Getting the channel right

strategy
Increasing online Getting the offer right
attrition
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Situation – digital marketing definitions
Marketing
Principles
• Get close to customers,
listen to them
• Involve them
• Serve them Digital
• Add value marketing?
Identify,
• Find the best ones
Anticipate,
• Nurture them into lifelong Satisfy customers needs
customers and advocates
efficiently
• Test, test, measure and
improve
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Situation – sloppy digital marketing
Minimizing the impact of customer
complaints
• The customer service operation is equipped to
monitor and engage with a targeted spectrum of
media.
• Companies fully understand where, why and how
their customers are using social media before
making any social media marketing changes.
• A balance is struck across different types of media –
telephone, email, web, social, network and mobile.

• The power of online communities is recognized, and

customers are encouraged to help each other.

• Relationships are nurtured with advocates who wield

particular influence on the internet.

• Specialist tools are used to measure the impact of

Figure 1.7 Digital marketing sloppiness causes high attrition customers’ online activity.
rates
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Objectives The 5S – digital marketing
Benefit of digital
objectives
How it is Examples
marketing delivered
Sell – Grow Through wider distribution, promotion, Achieve 10% of sales online
sales sales
Through giving customers extra Increase conversion
Serve – Add benefits online or inform product rate by 5%
value development through online dialogue
and feedback.
Grow email coverage to
Speak – Get closer to By tracking them, asking them questions, 50% of current customer
customers creating a dialogue, learning about them. database
Through online email communications, sales Generate 10% more sales
Save – Save and service transactions to reduce staff, print for same communications
costs and postage costs. budget
Sizzle – Extend the Through providing a new proposition and Add two new significant
brand online new experience online while at the same enhancements to the customer
time appearing familiar. online experience

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Objective – sell – using the internet as a sales tool

Direct online revenue

contribution
To increase this %, using mixed-mode
or multichannel selling is a must
% of sales transactions
completed online

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Objective – sell – using the internet as a sales tool

Tagging value events to assess the

Indirect online revenue influence of a web site and digital channels
on sales
contribution
• Sale
• Lead
• Newsletter
% of sales influenced by • Searches
digital communications • Product page views
• Product document
downloads

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Objective – serve – using the internet as a
customer-service tool

Adding value to B2B services – Seybold

(1999)
“Let customers help
themselves”
e.g. delivery of product, after-sales
support
“Help customers do their jobs”
e.g. give content about best practice to help
professionals complete their day-to-day work and
develop their professional careers

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 Objective – speak – using the internet as a
communications tool
Inbound marketing
Pull mechanism: in Digital
marketing, the contact with the
brand is initiated by the customer
Good visibility from
companies in search engines
is essential

Content marketing
1. Content engagement
value
2. Content media
3. Content syndication
Figure 1.11 Categories of media: paid, owned,
4. Content participation
earned 5. Content access platform
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Objective – speak – using the internet as a
communications tool

Key digital media

channels
1. Search engine marketing
(SEM)
2. Online PR
3. Online partnerships
4. Interactive advertising
5. Opt-in email
6. Social media marketing

Figure 1.12Inbound marketing infographic Source: First 10

(2012)
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Objective – sizzle – using the internet as a brand-building
tool

To add extra value, extend the experience and enhance the

SIZZLE image

What experience could a web site deliver that would be truly

unique and representative of the brand?
Reality
Perception

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Introduction to digital marketing strategy
• Crystal clear What you want to achieve
objectives online
• Target markets, positioning and
propositions
• Optimum mix of tactical Web site, banners ads,
E-strateg e-tools etc
y • Evolutionary What stage you want to be
stage at
• Online marketing Particularly service
mix levels
• Dynamic Ongoing with the
dialogue customer
• Integrated Recognize and remember each customer
database whether via web or telephone

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Tactics, Action and Control
Tactics are the details of strategy.

Tactical e-tools include the web site, opt-in

email, banner ads, virtual exhibitions and
sponsorship.

Actions include project planning and

implementation, while control involves
assessing the results against objectives.

Control also includes competitive

intelligence.
Figure 1.13Using the Smart Insights RACE Planning framework to link business
objectives to digital marketing tactics

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