1. Part 2 Digital marketing strategy development Chapter 4 Digital marketing strategy

2. 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?

3. 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

4. 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

5. 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.

6. 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”

7. 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:
Communicate benefits of using this channel
Prioritise audiences targeted through channel
Prioritise products available through channel
Hit our channel leads & sales targets
Acquisition, Conversion, Retention
Channel strategies thrives on differentials
BUT, need to manage channel integration

8. Figure 4.1 Internal and external influences on digital marketing strategy

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

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

11. Figure 4.3 Hierarchy of organisation plans including e-marketing plans

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

13. Figure 4.5 Dynamic e-business strategy model
Source: Adapted from description in Kalakota and Robinson (2000)

14. Table 4.2 Summary of approaches used to support emergent strategy

15. 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)

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

17. Corporate stage model BP, Shell involved with this
Limited in structure.
Not an initiative – like DM – needs to be done.
Green are the central, other are the departments.
Source: E-consultancy (2005) report ‘Managing an E-commerce team’ Author: Dave Chaffey

18. opportunities and threats presented by digital media
Figure 4.7 A generic digital channel-specific SWOT analysis showing typical
opportunities and threats presented by digital media

19. 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

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

21. Internet marketing benefits
Tangible 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

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

23. Figure An example of a performance measurement system for an e-commerce electrical goods retailer
Source: Based on Friedlein (2002)

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

25. Figure 4.12 Using the Internet to support different organisational growth strategies

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

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

28. 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

29. Figure 4.15 Stages in target marketing strategy development

30. Figure 4.16 Dell Singapore site segmentation
Source: © 2012Dell Inc. All Rights Reserved.

31. Figure 4.17 Customer lifecycle segmentation

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

33. Figure 4.19 Alternative positionings for online services

34. Figure 4. 20 WeBuyAnyCar (www. webuyanycar. co
Figure WeBuyAnyCar ( clearly communicates its
proposition

35. Figure 4.21 Strategic options for a company in relation to the importance of the
Internet as a channel

36. Figure 4.22 Flow chart for deciding on the significance of the Internet to a business
Source: After Kumar (1999)

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

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

39. Figure 4.25 Options for location of control of e-commerce
Source: Econsultancy (2008)

40. Figure 4.26 Example of risk–reward analysis

41. Table 4.9 Online performance management grid for an e-retailer