slide 4.1 chaffey et al., digital marketing: strategy, implementation and practice, 5 th edition ©...

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

Part 2Digital marketing strategy

development

Chapter 4Digital marketing strategy

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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?

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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

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Q. What are organisational problems if no E-marketing 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

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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.

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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”

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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.Communicate benefits of using this channel2.Prioritise audiences targeted through channel3.Prioritise products available through channel4.Hit our channel leads & sales targets– Acquisition, Conversion, Retention

• Channel strategies thrives on differentials• BUT, need to manage channel integration

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Figure 4.1 Internal and external influences on digital marketing strategy

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Table 4.1 Summary of typical focus for main types of e-commerce-related strategic initiatives

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Figure 4.2 HSBC Expat Explorer (http://www.expatexplorer.hsbc.com)

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Figure 4.3 Hierarchy of organisation plans including e-marketing plans

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Figure 4.4 The SOSTAC® planning framework applied to digital Digital marketing strategy developmentSource: Chaffey and Smith (2008)

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Figure 4.5 Dynamic e-business strategy modelSource: Adapted from description in Kalakota and Robinson (2000)

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Table 4.2 Summary of approaches used to support emergent strategy

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Figure 4.6 Levels of website development in: (a) the information to transaction model and (b) the transaction to information model of Quelch and Klein (1996)

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Table 4.3 Capability maturity model of e-commerce adoption based on Econsultancy (2008) research

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Corporate stage model

Stage 1.Unplanned

Limited

E-commercematurity stage

Strategy process and performance

improvement process

Structure:Location of E-

commerce

Senior management

buy-in

Marketing integration

Online marketing focus

Uncontrolledexperimentation

Limited DiscreteContent:

Brochureware

Stage 1.Unplanned

Low-levelobjectives

Diffuse AwareCommon initiatives

Traffic:visitor acquisition

Stage 2.Diffusemanagement

Stage 1.Unplanned

Specificorganisational

objectivesCentralised Involved

Annual planningcollaboration

Conversion & customer

experience

Stage 3.Centralised management

Stage 1.Unplanned

Refinedonline channelimprovement

DecentralisedDriving

performancePartnership Retention

Stage 4.Decentralisedoperations

Stage 1.Unplanned

Integratedmulti-channelimprovement

Integrated Integral CompleteWhole lifecycle

optimisation

Stage 5.Integrated &optimised

Source: E-consultancy (2005) report ‘Managing an E-commerce team’ Author: Dave Chaffey

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Figure 4.7 A generic digital channel-specific SWOT analysis showing typicalopportunities and threats presented by digital media

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Figure 4.8 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

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Figure 4.9 Will Wynne, Arena Flowers (www.arenaflowers.com)

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Internet marketing benefitsTangible benefits• Increased sales from new sales leads giving rise to increased revenue from:

• new customers, new markets• existing customers (repeat-selling)• existing customers (cross-selling)

• Cost reductions from:• reduced time in customer

service • online sales• reduced printing and distribution costs of marcomms

Intangible benefits• 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

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Figure 4.10 Grid of product suitability against market adoption for transactional e-commerce (online purchases)

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Figure 4.11 An example of a performance measurement system for an e-commerce electrical goods retailerSource: Based on Friedlein (2002)

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Table 4.7 An example of the relationship between objectives, strategies and performance indicators

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Figure 4.12 Using the Internet to support different organisational growth strategies

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Figure 4.13 Smile (www.smile.co.uk)

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Figure 4.14 Dell Ideastorm (www.ideastorm.com)Source: © 2012 Dell Inc. All Rights Reserved.

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Common online targeting options

– Brand loyalists – convert online– Not brand loyal – encourage trial– Most profitable – deepen relationships– Larger companies (B2B)– Smaller companies(B2B) – Key members of the buying unit (B2B) – Difficult to reach using other media

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Figure 4.15 Stages in target marketing strategy development

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Figure 4.17 Customer lifecycle segmentation

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Figure 4.18 Euroffice e-mail (www.euroffice.co.uk)Source: Adapted from the company website press releases and Revolution (2005a)

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Figure 4.19 Alternative positionings for online services

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Figure 4.20 WeBuyAnyCar (www.webuyanycar.co.uk) clearly communicates itsproposition

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Figure 4.21 Strategic options for a company in relation to the importance of theInternet as a channel

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Figure 4.22 Flow chart for deciding on the significance of the Internet to a businessSource: After Kumar (1999)

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Figure 4.23 Influences on customers of multichannel decision makingSource: adapted from Dholakia et al. (2010)

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Figure 4.24 Channel coverage map showing the company’s preferred strategy for communications with different customer segments with different value

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Figure 4.25 Options for location of control of e-commerceSource: Econsultancy (2008)

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Figure 4.26 Example of risk–reward analysis

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Table 4.9 Online performance management grid for an e-retailer

slide 4.1 chaffey et al., digital marketing: strategy, implementation and practice, 5 th edition ©...

Documents

emarketing strategy

digital marketing strategies

business strategy

digital platforms

channel strategy objectives

online marketing opportunities

organisation slide

digital technology platforms