Digital Food Marketing
Topic 1 – The Digital Age
What does a digital marketer do?
Main focus: brand awareness and lead generation (consumer interest) through company’s digital
channels. Each channel has different key performance indicators (KPIs).
Inbound vs Outbound vs Digital marketing
Outbound marketing: pushes content to the customers (mail, radio ads, telemarketing)
Inbound marketing: pulls the customer in, creates and distribute relevant and valuable content
(social media, videos, podcasts)
Digital marketing: can be both outbound (ads on YouTube) and inbound (blogs).
Traditional vs Digital Marketing
Traditional: mostly outbound marketing. 3 flaws:
- Interrupts customer
- Only holds attention for short time
- Expensive
Digital: mostly inbound marketing. Advantages:
- Provides value
- Educates customer
- Attracts customer
- Creates viral content
- Creates reciprocity
Key changes in media characteristics:
1. From push to pull: outbound to inbound marketing
2. Interactive dialogues: two-way and multi-dimensional interactions with the customer
3. From one-to-many to one-to-some and one-to-one: one company to many consumers to
niche or micro-segment and mass-customisation and personalisation
4. From one-to-many to many-to-many communications: customers interact with other
customers
5. From lean-back to lean-forward: customers want to be in control
6. Increase in communications intermediaries: traditional advertisement have migrated online
but also online-only publishers, bloggers
7. Integration: combine and integrate traditional and digital media according to their strengths
8. Always-on and real-time
Online retail
Drivers of growth: use of smartphones and tablet computers, greater merchandise selection online
and new business models
Omnichannel Strategy
Customer communications and product distribution are supported by a combination of digital and
traditional channels at different points in the buying cycle.
,The information and fulfilment matrix
Information delivery:
- Customers visit stores to obtain information
- Customers can seek information online
Fulfilment (product delivery):
- Customers visit a store to pick up items
- Products are delivered
Types of digital media
1. Paid media: properties are owned by others, who are paid to carry promotional messages (tv
advertisement, paid placement of a product etc.)
2. Earned media: messages about the company generated by others (customers sharing
experiences, opinions, word of mouth)
3. Owned media: carry communication messages from the organisation on owned channels
The 7 P’s – Product
- Affect core product: subscription, pay per view
- Affect actual product: the features of the product
- Affect the extended product: additional services and benefits (reviews, videos, etc.)
The 7 P’s - Price
The internet has led to increased price transparency.
- Particularly aggregators; price comparison websites
- Retailers should highlight other features
Downward pressure on price.
- Dynamic pricing: prices can be updated in real time
- Auctions
- Shipping fees
Alternative pricing structures:
- Payment per use
- Rental at a fixed cost per month
- Lease arrangement
- Bundling with other products
The 7 P’s – Place or distribution
The place of purchase has changed – it is now a global virtual environment that crosses geographical
boundaries.
The retailing industry evolves towards a seamless omnichannel retailing experience.
The 7 P’s – Promotion
- Different channels
- Internet can be used at different stages of the buying process
- New ways of applying each of the elements of the communications mix
More integrated approaches of companies.
The 7 P’s – People, Process and Physical evidence
People: interaction with customers (customer service)
, Physical evidence: evidence that is digital (customer experience, review, ease of use)
Process: methods and procedures companies use to achieve all marketing functions (check
availability, fast response to questions)
Some key issues in the delivery of service online:
Substitution: technology instead of people FAQ’s, in-sit search engine, avatar offering answers to
questions
Complementary: technology in combination with people online chat facility/Chatbot
Displacement: outsourcing technology or labour
The digital ecosystem
1. Search engine marketing
2. Online PR
3. Online partnerships
4. Display advertising
5. Opt-in email
6. Social media marketing
Summary Digital marketing: A framework, review and research agenda
How the four p’s are changing:
1. Product: augmenting the core product with digital services, networking of products using
digital technologies and morphing products into digital services (software). A rental economy
is spawning wherein the dormant value of owned-products is released through digital
networking. More place for mass customization
2. Price: reduction in menu costs, dynamic pricing, online auctions, search keywords, display
ads. There are very low or zero marginal costs for production and distribution.
3. Promotion: via e-mails, display advertisements, social media, location-based mobile
promotions and personalized promotions. Recommend products through collaborative
filtering or adaptive personalization.
4. Place: use of smartphones, tablets
In the digital environment, customers can move through their decision journey in fundamentally new
ways
Topic 2 – The Digital Consumer
Traditional consumer decision-making process
Consumers move through five stages in the decision-making process. These are:
1. Problem recognition; need, want or desire they want to satisfy
2. Information search; gather all information that help by making decision (external or internal)
3. Evaluation of alternatives; list of criteria that are important and the solution needs
4. Choice/purchase of item
5. Post-purchase behaviour; was this the right decision?
Traditionally, this is a linear process. However, in the digital environment, customers move through
their decision journey in new ways.
Traditional VS Digital
See slide.
