Introduction to Digital (Interactive) Marketing [DIM] Overview of the DIM scope Digital (Interactive) Marketing (Lecture 1.1) Dr Elvira Bolat ebolat@bournemouth.ac.uk
@dimbsbu
https://dimbsbu.wordpress.com
Learning Outcomes • To explore how digital interac7ve marke7ng is different and/or similar to tradi7onal marke7ng • To introduce key terms (DM, DIM strategy, DIM communica7ons) • To map DIM plaCorms
Revisi7ng your knowledge: What is Marke7ng and is it important?
“… is one business func-on (1) that must be used appropriately by the entrepreneur to launch and develop the new venture successfully (Hisrich 1992) Hisrich 1992) (2) that is important to new business crea-on and growth (Hills and LaForge 1992)”
Marke7ng is “the ac-vity, set of ins-tu-ons, and processes for crea-ng, communica-ng, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
(American Marke7ng Associa7on 2012)
What New Informa7on Technologies (digital technologies) are we dealing TODAY as a business and/or as a consumer?
DIM Pla?orms / Digital Media
Programming Tools • Scrip7ng languages • Source coding tools So8ware Applica=ons • Build tools Web 2.0
• • • • •
myBU MicrosoZ Office Safari/Firefox Java Adobe
Digital Media Tools
•
• Email marke7ng • Google Search (SEO) • Website (& its support) • Mobile Apps/widgets and games • Internet TV Hardware (PC, laptop, notebooks, mobile phones, tablets, gaming devices)
Why deploying/using/applying digital technologies is important? Business Perspec7ve Informa7on intensity
Electronic deliverability
Customisability
Real–7me interface
Aggrega7on effects Search costs
Network effects
Standardisa7on benefits
Contrac7ng risk
Missing competencies/ capabili7es
Why deploying/using/applying digital technologies is important? Consumer Perspec7ve
Accessibility
Informa7on
Customisability
Real–7me interface Compe77ve value
Community effects Search costs
Choice
How have digital technologies transformed marke7ng?
Business Perspec7ve – 3 Media-on Pathways
Source: Andal-‐Ancion et al., 2003. The digital transforma7on. MIT Sloan Management Review, (summer), p. 37.
Applica7ons of DIM
Businesses’ digital presence: purposes • Services-‐oriented / rela7onship building (e.g. Bri7sh Gas, Eon) • Brand-‐building (e.g. Coca-‐Cola, Heineken) • Transac7onal e-‐commerce (e.g. Amazon, Net-‐a-‐ Porter, Asos) • Portal or media (e.g. Google, silicon.com) • Social networking CLEARLY NOW ALL of THESE are OVERLAPPED/INTEGRATED
Read more: hjp://www.brandrepublic.com/ar7cle/ 1381363/armour-‐doesnt-‐just-‐sell-‐sportswear-‐ knows-‐consumers-‐eat-‐sleep-‐feel
Consumer Perspec7ve • IoT • Wearable Technology • Complex Nature of Privacy • Changed Decision-‐making Process
Read more: hjp://www.brandrepublic.com/ ar7cle/1374675/hive-‐preps-‐major-‐ marke7ng-‐push-‐internet-‐things
Source: Moran, G., Muzellec, L., & Nolan, E., 2014. Consumer Moments of Truth in the Digital Context: How" Search" and" E-‐Word of Mouth" Can Fuel Consumer Decision-‐Making. Journal of Adver-sing Research, 54 (2), p. 203.
Source: hjp://www.smar7nsights.com/digital-‐marke7ng-‐strategy/will-‐digital-‐marke7ng-‐ change-‐2016/
Why to study DIM –
Basics • Terms – digital marke7ng = • Internet marke7ng = • e-‐marke7ng = web marke7ng Digital marke7ng – “achieving marke-ng objec-ves through applying digital technologies” Source: Chaffey and Smith, 2008.
Digital marketing and social media: Why bother?
3.1. Competitive pressure drives digital marketing efforts
(Chaffey and Ellis-‐Chadwick 2012, p. 10)
Owned media – online presence for the company As revealed by our study, external competitive pressure plays the most prominent role in a firm’s decision to utilize digital media for marketing purposes (56% of surveyed managers rated it as important or extremely important). Internal efficiency represents the second-most influential factor (49% of managers) driving firms to adopt digital marketing strategies, followed by the facilitation of top-down directives (13% of managers). Digital social media brings several advantages to firms. Ainscough and Luckett (1996), for example, argue that the Web can be used for publishing,
Table 1.
705
Benefits of digital presence
Benefit type
%a
Improves information gathering and feedback
87
User-friendly tool
85
Increases knowledge
85
Promotes internal and external relationships
82
Supports decision-making process
60
Increases productivity
58
Better outcome measurement
53
Note: N = 170 Source: Tiago and Verissimo, 2014. Digital marke7ng a Percentage of respondents rating 4 or 5 on a 1—5 scale and social m edia: Why bother? Business Horizons, 57, p. where 5 = extremely important.
705.
tising expenditures were predicted to increase more than 14% to an all-time record of $101.5 million. In
Basics (cont.) • Strategy is Crucial! in digital marke7ng Why? Today DIM – is an area of substan7al investments for the company • Communica7on is #1 ac7vity conducted and managed via digital technologies
Table 2.
Digital investment areas
Area of investment
%a
Digital presence Social network/apps
81
E-mail marketing
65
Digital ads
50
Viral campaigns
46
Digital brand experiences
39
Mobile
38
Search engine optimization
32
Digital infrastructure
25
Blogs
18
Games
7
Human Resources People involved in digital marketing
45
Competencies Mobile apps development
39
Video content development
28
Website design
21
Website maintenance and domain
16
Blogs edition
13
Note: N = 170 a Percentage of respondents planning to invest in designated Source: Tiago and Verissimo, 2014. Digital marke7ng and social areas.
media: Why bother? Business Horizons, 57, p. 706.
Basics (cont.) • Cri7cal to DIM strategy are INTEGRATION & ALIGNMENT • Based on clear, SMART and linked objec7ves • SOSTAC model (consistency) • Value proposi7on mapping against an individual digital media (different forms of online presence) • Marke7ng mix specifica7on • Digital customer lifecycle / journey(s)
Case Study
Source: Chaffey and Eliis-‐Chadwick, 2012. Digital marke7ng, p. 25.
Basics (cont.) • DIM communica7ons -‐ #1 ac7vity • Requires strategic approach (1-‐year plan) -‐ SOSTAC • INTEGRATION & ALIGNMENT are key – IMC • Based on clear, SMART and linked objec7ves
Diversity of communica7on tools – key challenge for DIM communica7on
Digital communica=on tools
Source: Chaffey and Eliis-‐Chadwick, 2012. Digital marke7ng, p. 30.
Social media zones and vehicles / channels
Source: Adopted from Tuten and Solomon, 2015. Social media marke7ng.
Food for Thoughts!
Ritson, M., 2015. ‘Digital marketing’ is redundants, o why create a separate budget for it? hjps://www.marke7ngweek.com/2015/11/17/mark-‐ritson-‐digital-‐ marke7ng-‐is-‐redundant-‐so-‐why-‐create-‐a-‐separate-‐budget-‐for-‐it/
Case study!