Lecture 1.1 introduction to dim dim scope

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!