Chapter 1 - Introduction to Digital Marketing
Digital marketing is about different types of audience interactions: ‘5Ds of managing digital
marketing interactions’
- Digital devices: devices such as smartphones, tables, laptops that form the Internet of Things
(IoT)
- Internet of Things: a system of devices, software, objects, people or animals with
unique identifiers that can transfer data over a network via machine-to-machine
(M2M) interactions without human interaction.
- Digital platforms: a browser or app from the major ‘platforms’ or online services like
Facebook, Google, Apple, LinkedIn.
- Digital media: different communications channels for reaching and engaging audiences like
advertising, email, search engines, social networks and messaging.
- Digital data: the insight businesses collect about their audience profiles and their interactions
with businesses.
- Digital technology: marketing technology or martech, businesses use this to create interactive
experiences from websites and mobile apps.
Digital disruptors: innovations in digital media, data and marketing technology which enable a
change to a new basis for competition in a market or across markets.
→ Are also used to refer to startup or existing companies that, through their agility, are good
examples of impacting competitors through disruption.
Digital marketing: the application of digital media, data and technology integrated with traditional
communications to achieve marketing objectives.
→ In practice, focus on managing different forms of online company presence (like company
websites, mobile apps, social media pages).
Online company presence: different forms of online media controlled by a company
including their website, blogs, email list and social media presences. Commonly known as
‘owned media’.
Customer Relationship Management (CRM): using digital communications technologies to
maximize sales to existing customers and encourage continued usage of online services
through techniques including a database, personalized web messaging, customer services,
chatbots, email and social media marketing,
Multichannel (omnichannel) marketing: customer communications and product distribution are
supported by a combination of digital and traditional channels at different points in the buying cycle
or ‘path to purchase’. With the range of mobile and IoT touchpoints, some have expanded the term to
omnichannel marketing.
,Customer journeys and the customer lifecycle: the sequence of online and offline touchpoints a
customer or buyer persona takes during a buying process or broader customer experience. Online this
may include a range of digital platforms, communications media, websites, pages and engagement
devices.
To help develop a strategy to reach and influence potential customers online, there are 3 main types of
media channels that need to be considered.
1. Paid media: also known as bought media, a direct payment occurs to a site owner or an ad
network when they serve an ad, a sponsorship or pay for a click, lead or sale generated.
2. Owned media: Different forms of online media controlled by a company including their
website, blogs, email list and social media.
3. Earned media: the audience is reached through editorial, comments and sharing online.
Application programming interfaces: method of exchanging data between systems such as website
services.
Introduction to digital marketing strategy
Positioning: customers’ perception of the product and brand offering relative to those of competitors.
Target marketing strategy: Evaluation and selection of appropriate customer segments and the
development of appropriate offers.
Online value proposition (OVP): A statement of the benefits of online services that reinforces the
core proposition and differentiates from an organization’s offline offering and those of competitors.
, Interaction and integration between digital channels and traditional channels is a key part of digital
marketing strategy development.
An effective digital marketing strategy should (key features):
- be aligned with business and marketing strategy with more specific annual business priorities
and initiatives.
- use clear objectives for business and brand development and the inline contribution of leads
and sales for the Internet or other digital channels - these should be based on models of the
number using the channels.
- be consistent with the types of customers who use and can be effectively reached through the
channel.
- define a compelling differential value proposition for the channel, which must be effectively
communicated to customers.
- specify the mix of online and offline communication tools used to attract visitors to the
company website, or interact with the brand through other digital media such as email or
mobile.
- support the customer journey through the buying process as they select and purchase products
using the digital channel in combination with other channels.
- manage the online customer lifecycle through the stages of attracting visitors to the website,
converting them into customers and retention and growth.
Value proposition: The benefits or value a brand offers to customers in its products and services.
Digital media and technologies can be used as follows (application):
- Advertising medium: Display ads on publisher sites or social networks can be used to create
awareness of brands and demands for products or services.
- Direct-response medium: Targeted search advertising enables companies to drive visits to a
site when consumers show intent to purchase, such as searching for a flight to a destination.
- Platform for sales transactions: Online flight booking is now the most common method for
booking flights, both for consumer and business travelers.
- Lead-generation method: For booking business flights, tools can be provided that help
identify follow-up corporate flight purchases.
- Distribution channel, such as for distributing digital products: Today, airlines sell more
insurance services than previously, for example.
- Customer service mechanism: For example, customers may ‘self-serve’ more
cost-effectively by reviewing frequently asked questions.
- Relationship-building medium: Here a company can interact with its customers to better
understand their needs and publicize relevant products and offers. For example, easyJet uses
its email newsletter and tailored alerts about special deals to encourage repeat flight bookings.
Marketing is the management process responsible for identifying, anticipating and satisfying customer
requirements profitably.
Benefit of e-marketing How benefit is delivered Examples of typical objectives
Sell - grow sales Includes direct online sales and offline Achieve 10% of sales online in
influenced sales. Achieved through market.
wider distribution to customers who
are not reached offline.
