Summary of the course digital marketing from the master's degree in communication sciences at Ghent University. Combination of the slides by Prof. Herrewijn and additional information from Annemarie Hanlon's book Digital Marketing. The summary is written in English.
Very complete and clear summary, definitely recommended!
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SAMENVATTING
DIGITAL MARKETING
Naar Digital Marketing van Annmarie Hanlon
& lesslides van prof. Herrewijn
Charlotte V. 2020
,PART 1 DIGITAL MARKETING ESSENTIALS
1 The digital marketing landscape
1.1 Introduction
The digital marketing landscape offers a lot of exciting opportunities for marketers, but there are also
considerable challenges to consider.
- Important to understand key concepts and how the pace of technology has changed.
- Traditional marketing models like diffusion of innovation are still valid: online opinion leaders,
differences between generations, …
- Meaning and impact of digital disruption
- Internet of Things, big data, Bitcoin, blockchain, and their impact on marketing
1.2 A new era
The growth of digital marketing has changed the relationship between businesses and customers.
KEY TERM
UBIQUITOUS COMPUTING
Weiser, 1991
In the future there would be computers everywhere and we would not notice their presence, they
would just be there. Some decades later we have them at home and on the way with us. We have
reached Weiser’s vision that computers are integrated seamlessly into the world at large.
One of the reasons for these trends and the change in the digital landscape is due the acceleration in
the adoption of new technologies.
1.2.1 The pace of technology substitution
This change in the digital landscape is due to the acceleration in the adoption of new technologies.
(Telephone: more then 50 years for half of households to adopt, Home computers: nearly 20 years,
Smartphones: 10 years).
The speed of replacement is based on ecosystems. Old technology may find product extensions
opportunities whereas new technologies ecosystems need to counter these challenges.
Adner & Kapoor Quadrant
CREATIVE DESTRUCTION – where there are new challenges to the new tech and few opportunities for
the old tech, resulting in fast substitution.
ROBUST COEXISTENCE – where the old tech fights back and brings out alternatives and gradual
substitution takes place.
ILLUSION OF RESILIENCE – where the new tech moves in with new challenges. Statis followed by fast
substitution.
ROBUST RESILIENCE – where the old tech fights back and new tech challenges, bringing about a
gradual substitution. (slowest substitution)
Limitations
Adopting of new products is not always based on product desire, but also availability. (in some coun-
tries it is harder to get a landline phone then a smartphone).
2
, Emerging challenges for new technologies
ILLUSION OF ROBUST
RESILIENCE RESILIENCE
gps navigators
high
vs paper maps
electric cars vs
mp3 files vs CDs gasoline cars
High def TV vs RFID chips vs
standard def TV barcodes
CREATIVE ROBUST
DESTRUCTION COEXISTENCE
low 16GB vs 8GB usb solid-state vs
magnetic storage
inkjet printer vs (flash memory vs
dot matrix printer hard disk drives)
low high
Extension oppurtunity for old technology
1.2.2 Two step flow theory of communications
MASS MEDIA
Lazarsfeld & Katz
A study to see how mass media affected voters in
the US election campaign for Roosevelt, showed
that it was influencers or opinion leader who had
the greatest impact and not the mass media.
The media communication was received by the
influencer and then passed to the other
individuals.
Limitations
--> It was based on one piece of research, which means it was not necessarily generalizable to other
situations.
--> A simplistic binary model which assumed that this is how mass media worked.
As a result from these limitations, the model was extended from two to multiple steps (multi-step-flow
theory, which has been a basis for other communication theories).
Today we have a mix of old and new communication theories working together. In a digital lands-
cape, our understanding of communications are changing. Newer models are emerging as well (Media
richness, uses & gratifications). At the same time, older theories such as diffusion of innovations have
remained valid.
KEY TERM
DIFFUSION OF INNOVATIONS
Rogers, 1962
Based on two-step flow theory of communications. He explored the conditions that increased or
decreased the likelihood of product adoption. Rogers proposed 5 adopter categories; Innovators,
early adopters, early majority, late majority, laggards.
These were ideal types fabricated to make comparisons. There was however criticism about the
terminology. The early majority is seen as the opinion leaders, an idea that comes from the two-
step-flow theory and which reverberates within digital marketing as organizations strive to seek
those to influence product adoption.
3
, Early Early Late
Innovators adopters majority majority Laggards
Innovators Active information seekers, often buying the latest gadget.
Early adopters Opinion leaders, who are happy adopting new products, seeking info before others.
Early majority Deliberate before adopting, like to gather info before deciding
Late majority Skeptical and nearly the last to adopt.
Laggards Suspicious of inventions and only adopt when no choice.
Rogers generalized that opinion leaders were more cosmopolitan then their followers. Opinion leaders
needed access to mass media and had to be accessible.
KEY TERM
OPINION FORMERS AND OPINION LEADERS
Opinion formers are formal experts, they work in this area and have specialist knowledge about
the topic.
Opinion leaders are informal experts who carry out research and whose knowledge is valued
among friends, family and followers.
The idea of early adopters/opinion leaders reverberates within digital marketing, as organisations strive
to seek those to influence product adoption.
Influencers charge more and more to promote brands, so they are looking for alternatives. Micro-
influencers, a new type of opinion leaders. An Instagram user with 100000 followers can command
$5000 for a post made in partnership with a company or brand.
KEY TERM
MICRO INFLUENCERS
Everyday individuals with small, dedicated followings online.
1.2.3 The move from traditional to digital marketing tools
As technology has decreased in price, and with the development of the internet, digital marketing has
offered easier, but not always cheaper, solutions.
New technology has heralded changes in behaviour (chapter 2).
Some examples of the move
Newspapers and magazine advert -- The sales have declined and it’s easier to target people online.
Door-to-door salespeople -- Expensive, we can now personalize offers to existing customers via email.
Company brochures -- Printing is expensive, so is creating websites, but they are agile (behendig/vlug)
and easier to change if needed.
Traditional PR -- Online PR makes the process easier.
Directories like the Yellow pages -- The default is to search online, directories are barely used anymore.
Community groups -- traditional community groups have declined, social media networks increased.
The challenge is that not all generations have made that move.
4
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