Digital Marketing for Manager

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MKTG6296

Digital Marketing for Manager

Introducing Digital Marketing Week 1

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1. Introduction - how has digital marketing transformed marketing?

2. Definitions - digital marketing and multichannel marketing

3. Introduction to digital marketing strategy

4. Introduction to digital marketing communications

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Introducing Digital Marketing

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PEMASARAN DIGITAL

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1900

• Telefon

• Radio

• Telegra m

1950

• Televisi

• Mega- comput er (256 bits)

1980

• Mesin Fax

• Personal

Komput er

1995

• Internet

• Surat Elektron ik

• Telepon gengga 2000 m

•Bluetooth

•Mesin pencari

•Televisi kabel

2005

•Pay per click

•SEO (Search Engine Optimisatio n)

•Wi-Fi

•Blogs

•Telepon 3G

2010

• Medial sosial

• iPod

• PC Tablet

•TV dan Radio Internet

2020?

• TV

Hologram

• Printer 3D

•Kompute r Braille

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Electronic Commerce and the Internet

• E-commerce:

• Digitally enabled commercial transactions between and among organizations and individuals, primarily over

Internet

• Began in 1995 with Netscape.com’s acceptance of ads

• Rapid growth led to dot-com bubble (burst in 2001)

• Current growth 25% annually

• Today e-commerce revenues picture is very positive

• E.g. Number of people who have purchased something online

expanded to about 106 million in 2007

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The Growth of E-Commerce

Figure 10-1

Retail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent annual increase, which is projected to remain the same until 2008.

Source: Based on data from eMarketer, 2006; Shop.org and Forrester Research, 2005; and authors.

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3. MENYUSUN STRATEGI PEMASARAN DIGITAL

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• Seven unique features of e-commerce 1. Ubiquity

• Internet technology available anytime and everywhere:

work, home, mobile devices

• Business significance:

• Marketplace is extended beyond traditional boundaries and is removed from temporal and geographic location

• Creates marketspace: Marketplace extended beyond traditional temporal, geographical boundaries

• Shopping can take place anywhere - customer

convenience (kenyamanan) is enhanced, shopping

costs are reduced

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2. Global reach

• Technology reaches across national boundaries, around Earth

• Commerce enabled across cultural and national boundaries seamlessly, without modification

• Marketspace includes potentially billions of consumers and millions of businesses

worldwide

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3. Universal standards

• There is one set of Internet technology standards

• Business significance

• Disparate computer systems can easily communicate

• Brings lower market entry costs (costs merchants pay to bring goods to market)

• Lowers search costs for consumers

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4. Richness

• Video, audio, text messages are possible

• Business significance: Video, audio, text integrated into single marketing message and experience

5. Interactivity

• Technology works through interaction with user

• Business significance: Consumers engaged in

dialog that adjusts to individual; consumer is co-

participant in delivering goods to market

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6. Information density

• Technology reduces information costs and raises quality

• Information becomes plentiful, cheap, and more accurate

• Increases price transparency and cost transparency

• Enables price discrimination

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7. Personalization/customization

• Technology allows personalized messages to be delivered to individuals as well as groups

• Permits customization—changing delivered product or service based on user’s preferences or prior behavior

• Business significance

• Personalization of marketing messages and

customization of products and services are

based on individual characteristics

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• Key concepts in e-commerce: Digital markets and digital goods

• Internet shrinks information asymmetry

• Information asymmetry: when one party has more information important for transaction

• E.g. Information asymmetry between auto dealers and customers

• Digital markets more flexible and efficient

• Reduced search and transaction costs

• Lower menu costs (cost of changing prices)

• Dynamic pricing

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• Key concepts in e-commerce: Digital markets and digital goods (cont.)

• Internet enables disintermediation

• Disintermediation:

• Removal of organizations or business process layers responsible for intermediary steps in

value chain

• Enables selling direct to consumer

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The Benefits of Disintermediation to the Consumer

Figure 10-2

The typical distribution channel has several intermediary layers, each of which adds to the final cost of a product, such as a sweater. Removing layers lowers the final cost to the consumer.

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Introduction - how has digital marketing transformed marketing?

5Ds of managing digital marketing interactions

Digital devices Digital

platforms

Digital media Digital data Digital tech

To understand the importance of digital marketing to the future of marketing, it’s helpful to think about what audience interactions we need to understand and

manage.

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how has digital marketing transformed marketing?

Figure 1.1 Customer lifecycle marketing touchpoint summary for a retailer

Indecisive custumer: pelanggan yang ragu-ragu Lapsed custumer : bekas pelanggan

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Definitions – digital marketing and multichannel marketing

The use of digital media, data and technology to support marketing activities has given rise to a bewildering range of labels and jargon created by both

academics and professionals. It has been called digital marketing, Internet marketing, e-marketing and web marketing.

Digital media

Communications are facilitated through content and interactive services delivered by different digital technology platforms including the Internet, web, mobile phone, TV and digital signage.

Digital marketing

The application of digital media, data and technology integrated with traditional communications to achieve marketing objectives..

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digital marketing and multichannel marketing

Paid, owned and earned media

Figure 1.2 The intersection of the three key online media types

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.

Owned media

Different forms of online media controlled by a company including their website, blogs, email list and social media presence.

Earned media

The audience is reached through editorial, comments and sharing online

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Introduction to digital marketing strategy

Key to effective digital marketing for developing a digital marketing strategy

Customer segmentation

Customer targeting Customer positioning

Online value proposition

A statement of the benefits of online services that reinforces the core proposition and differentiates from an organisation’s offline offering and those of competitors.

Evaluation and selection of appropriate customer segments and the development of appropriate offers.

Customers’ perception of the product and brand offering relative to those of competitors.

Customer segmentation is the practice of dividing a company's customers into groups that reflect similarity among customers in each group

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Figure 1.5 Summary and examples of transaction alternatives between businesses, consumers and governmental organisations

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Introduction to digital marketing strategy

Figure 1.6 The distinction between buy-side and sell-side e- commerce

Sell-side e-commerce

E-commerce transactions between a supplier organisation and its

customers.

Buy-side e-commerce

E-commerce transactions between a purchasing organization and its suppliers.

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Figure 1.8 A generic digital marketing strategy development 26

process

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Introduction to digital marketing communications

The digital equivalents of these traditional media, which are known as digital media channels, are vital components of most marketing campaigns today

For example, in an online campaign, marketers can use ads and content on social media to engage audiences:

display ads, the familiar banner and skyscraper ads seen on many online publisher sites; pay-per-click (PPC) ads, such as the Sponsored Google Ads adverts in Google;

search engine optimisation (SEO) to gain higher positions in the natural listings of Google;

affiliate marketing, where sites that generate a sale for a merchant gain

commission; and email marketing, which is most effective when messages

are sent to an existing customer base

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Figure 1.9 RACE: Reach–Act (Interact)–Convert– 28

Engage

Using digital media channels to support business objectives

RACE is a practical framework developed by Smart Insights (2010) to help marketers manage and improve the commercial value that their organisations gain from digital marketing

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