Digital Strategy & Market Research Presented By: Pam Shaw B.Comm., RYT, PTS, PMI, CAI, FIS

 Articles  Assignment One (online ad critique) Due Today! Questions?  Assignment Two (Online Ad Design) Due in three weeks on February 28 – the week after break week – Questions?  Today – pay attention – content applicable for Assignment Three (Final Project)!

 Marketing vs. eMarketing  Market Research  Gathering Information  Types of Research  Online Implications of Research  Marketing Strategy  Target Market  Goals & Objectives  Strategic Planning & Execution  Evaluation  Final Project  Questions

 Marketing:  Total system of business activities  The Four P’s & Distribution  Focus on target market to achieve objectives  eMarketing:  Marketing using the Internet  Therefore, to be Successful:  An eMarketing Strategy should: Not be separate from a Marketing Strategy Focus on target market & budget Be flexible, shift focus as needed

 Why Research ?  Our customers are doing it so we need to keep up  Sites allow product/service comparison & customer reviews  Examples: Cheapflights.ca tripadvisor.com Home Depot/Canadian Tire Websites, etc.  Gathering Data:  Aids business decisions  Allows us to learn about our customers, competition, and the market  ORM is very important

 What is Market Research?  A process that aids business decisions  Gathering, recording & analyzing data & information about customers, competitors & the market  Can be based on primary or secondary data & information  Data can be syndicated – What does that mean?  Types of Research:  Primary  Secondary  Qualitative  Quantitative

 According to Survey Monkey:  The way a survey is administered plays a role in response rates:  Mail: 50% adequate, 60-70% good to very good  Phone: 80% good  40% average, 50-60% good to very good  Online: 30% average  Classroom pager: 50+% good  Face to Face: 80-85% good

 Example?  Conducted Second  Is primary research necessary?  How are you going to obtain the data?  Gather information/data on a particular product or hypothesis  Must be collected from consumers or businesses  Examples:  Surveys, focus groups, research panels and research communities

 Example?  Conducted First  Does the data you require already exist?  Uses existing, published data & research  Can be internal or external data  Can be more cost effective than primary  Data may not meet your needs  Can be helpful in planning primary research  Authenticity is key  Examples:  Using Statistics Canada website vs. Wikipedia

 Used for exploratory purposes:  Identify potential hypotheses  Design quantitative research  Interpret market perspective  Examines consumers’ views, opinions & feelings  Can be difficult to quantify, more expensive, & time consuming  Examples:  Focus group interviews and one-on-one depth interviews

 Used to obtain statistical information about a sample of consumers or members of the public  Data:  Must be formally gathered  Is statistically analysed to determine results  Should be collected to test a hypothesis not determine one  Example:  Surveys – step by step guide in the text

Quantitative ModeQualitative mode Assumptions Social facts have an objective reality Primacy of method Variables can be identified and relationships measured Etic (outside's point of view) Assumptions Reality is socially constructed Primacy of subject matter Variables are complex, interwoven, and difficult to measure Emic (insider's point of view) Purpose Generalizability Prediction Causal explanations Purpose Contextualization Interpretation Understanding actors' perspectives Approach Begins with hypotheses and theories Manipulation and control Uses formal instruments Experimentation Deductive Component analysis Seeks consensus, the norm Reduces data to numerical indices Abstract language in write-up Approach Ends with hypotheses and grounded theory Emergence and portrayal Researcher as instrument Naturalistic Inductive Searches for patterns Seeks pluralism, complexity Makes minor use of numerical indices Descriptive write-up Researcher Role Detachment and impartiality Objective portrayal Researcher Role Personal involvement and partiality Empathic understanding

 Can be combined  Assign numeric value to qualitative data to generate a score  Example: Case in the text at the end of Chapter 2: BrandsEye’  When using both:  1 st : (usually) qualitative to determine issues  2 nd : quantitative to test theories in qualitative

 The Internet can be used in gathering:  Primary & secondary research  Qualitative and quantitative data  Online Communities = large focus group  Research information and tools readily available  Sophisticated research tools exist (see Tools of the Trade in the text)  Reach large numbers at relatively low cost  Market research should produce information that leads to actions

 Research available:  Social media such as blogs & social networking sites  Online research panels/communities  Online research publications  Listening Lab for usability testing  Global search data  Customer Communications  Cookies and other tools for tracking and measuring  Examples?

 What is your Company’s Mission Statement?  Background:  What are the current problems?  Current nature of the organization?  Who is the Target Market?  What are their needs?  How can the organization fulfill the needs of the Target Market?  What is the marketing mix? 4P’s, 5 th P

 Why is having a Target Market Important?  The 80/20 Rule  Example of a Target Market?  Demographics: age, gender, class, income  Geographic location  Psychographics: Psychological and sociological influences  Who is your Target Market? Example?

 The 4 P’s  Products & Service  Price  Placement or Distribution  Promotion  The 5 th P  People: Personalization Participation Peer-to-peer Sharing & Communities Predictive modelling  Awareness of Uncontrollable Factors  Existing or pending legislation relevant to the business e.g. environmental controls/regulations re: disposal  State of the economy in the market The 4 P’s

 Identify weaknesses and opportunities  Use Porter’s Five Forces Analysis (next slide)  Useful in understanding the attractiveness of the market  Was developed before the Internet  Barriers to entry and costs of switching are reduced = More competitors in the market  Cost of switching has lowered  Customer bargaining power has increased  Organizations compete based on price  Strategic differentiation comes from value

 Competition:  Who or What is trying to attract your consumers?  What are your customer’s needs & wants?  How may your customers fulfill their needs?  You are competing for customers attention not just their money  Environment:  What is the market like?  What is likely to change in future?

 Marketing Objectives  Must Be SMART – Does anyone know what that means? Specific Measureable Achievable Realistic Time-Based E.g. To achieve a sales revenue of $259,200 per year for the first three years of the business  Outline the desired outcomes of the marketing plan  Which SMART objectives will indicate the success of the marketing strategy?  Unique & based on increasing revenue  Focused on long-term success – establish milestones, long-term & short-term goals

 What value does your company bring to the existing market?  What is your main objective and what other goals can you set which will help you achieve your main objective?  How will you know if you are successful at adding value to the market?  Explore all of your options!

 Generate Strategies & Tactics for Achieving Objectives  How will you achieve your objectives?  Which strategies will you employ to be successful?  Example: Objective: To increase customer retention by 2% by 2013 Tactic: Develop an newsletter strategy to build relationships with an existing database of interested prospects  Evaluate Strategies  Humphrey’s SWOT Analysis  Key Indicators  Monitoring & Reporting

 Why are they important?  Helps define: What successful value-exchange is worth How this worth is measured  Consider Metrics with Step 3 in mind (value- exchange)  Start with ROI in mind  What is ROI?  Set up analysis and measurement tools early  Measure returns from inception.  The Metrics that matter are KPIs  What’s a KPI?

 Track, Analyze, Optimize  eMarketing uses hyperlinks & can be tracked  Once tracked, data can be analyzed  Remain dynamic - put it in the budget  Each tactic can be individually tracked, intelligent analysis helps you consider how they work together  Keep ORM in mind!

 Adopt a real client and design a complete marketing/advertising strategy for them  Include an Executive Summary  What is an Executive Summary?  Last Step  Includes Background and Mission Statement  Background Statement  History of Business  Mission Statement  Future Direction  Market, Environment, Strengths, Management Preferences

 SEO/SEM continued and Viral Marketing  Following week – break week

 Balderson, W. D. (2003). Canadian Entrepreneurship & Small Business. Toronto: McGraw-Hill Ryerson Limited.  Sommers, M. S. Barnes, J.G. Stanton, W. J. (1998). Fundamentals of Marketing. Toronto: McGraw-Hill Ryerson Limited.  Stokes, R. (2008). eMarketing the Essential Guide to Online Marketing 4th Edition. South Africa: Quirk eMarketing (Pty) Ltd.

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