DIM2018 - Lecture 2.1. Digital landscape marketplace analysis and the marketing mix

The digital marketing landscape analysis: Marketplace analysis & the marketing mix Digital (Interactive) Marketing (Lecture 2.1) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @dimbsbu

https://dimbsbu.wordpress.com

Learning Outcomes • To start the SOSTAC overview • To understand and assess the micro and the macro environments of the digital marketplace • To evaluate 4Ps in the digital marketplace context

Part I. Environment

Capabilities to change and be dynamic varies across size of the company, industry.

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing.

Legal Compliance

Communication

+ The EU’s General Data Protection Regulation (GDPR) 2018

Technology

Technology: What is Right for You?

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing.

Source: Andal-Ancion et al., 2003. The digital transformation. MIT Sloan Management Review, (summer), p. 37.

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing.

Lecture 2.2

Digital/Internet Marketplace

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing.

Lecture 2.2

Customer Competition

Intermediaries

The Company

Competition DVP = OVP – Online Value Proposition • Providing value/benefits to encourage usage of digital channels/media • Reinforcing brand propositions • Differentiate • Focus in communication

Competition (cont.)

DVP = OVP: 6 Cs to consider Cost Convenience Content Customisation Choice Community

Competition (cont.)

DVP = OVP: Benchmarking Competitors’ digital channels

Intermediaries Search Intermediaries – Portals + Marketing & Media Sites

Intermediaries (cont)

The Company

Where do we begin? TOWS/SWOT

Source: Weihrich, H., 1982. The TOWS matrix—A tool for situational analysis. Long range planning, 15(2), p. 60

TOWS/SWOT

Example: Apple

The Company

Web Analytics

The Company (cont.)

Digital communication tools

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing, p. 30.

The Company (cont.)

Social media zones and vehicles / channels

Source: Adopted from Tuten and Solomon, 2015. Social media marketing.

The Company (cont.) – digital governance The McKinsey 7S Framework

Part II. Let’s talk about Marketing Mix

Source: https://www.linkedin.com/pulse/why-four-ps-marketing-dead-don-tapscott

Source: https://www.marketingweek.com/2017/02/09/big-debate-4ps-marketing-still-relevant/?nocache=true&adfesuccess=1

Source: http://www.ogilvy.com/On-Our-Minds/Articles/the_4E_-are_in.aspx

DIM - 8Ps 4Ps = 4Es + 3Ps (People, Physical evidence, Processes) +

1P (Partnership)

Right DIM marketing mix is determined by the Right DIM marketing strategy

Lecture 3.2

3 Ms

Marketing Mix

Product: C5 Price: ÂŁ399 Place: electricity stores Promotion: PR coverage across the UK Targets: kids, commuters, housewives

Product: Repositioning – a fun novelty leisure item Targets: 18-25 year old holiday makers Price: doubled

Right marketing mix is determined by the Right marketing strategy (incl. STP – who is your customer; who are your competitors etc.)

Watch this!

Why STP? Formula for Marketing Success: Identify + Reflect + Satisfy

SEO Formula for Marketing Success: Identify + Reflect + Satisfy

DIM - 8Ps 4Ps = 4Es + 3Ps (People, Physical evidence, Processes) +

1P (Partnership)

Product = Goods + Services = Experience

Product = Goods + Services = Experience • Core product vs Extended product • Pure digital products (i.e. publishers of the content - different price points: subscription, pay per view, bundling, ad supported content) • Basic customer satisfaction factors online • UGC (Prosumer)

Product = Goods + Services = Experience • Velocity of NPD (New Product Development) • Velocity of new product diffusion (e-WOM – the Tipping point, see Chaffey and EllisChadwick 2012, p. 269-270) • The long tail concept (see Chaffey and EllisChadwick 2012, p. 269-270)

Promotion – Communication mix (tools) • 2-way and 3-way (trialogue) communication (i.e. Web 2.0, Web 3.0) • STP • Acquisition vs. Retention Marketing strategy • Long-term vs. Short-term objectives • Credibility before visibility • IMC

Web of conversations

Promotion – Communication mix (tools) • Advertising Interactive ads, PPC keyword advertising • Selling Virtual sales, affiliate marketing, web rings, links • Sales Promotions Online loyalty schemes, online incentives, rewards • PR Ezines, sponsorship, virals, SM, virtual exhibitions, WOM

• Direct marketing Email marketing, newsletters, web response • Merchandising E-tailing, website interface • Packaging

Promotion – Communication mix (tools) – key investment decisions • Investments in website promotion as opposed to website development and maintenance • Investments in digital promotion tools in comparison to offline • Investments in different digital promotion tools (SEO, online PR etc.)

Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing, p. 30.

Price • Price transparency Price comparison websites / Aggregators Shopping bots Global sourcing • Downward pressure on price • Price flexibility Customer unions Reverse auctions Pay per use, rental/leasing Name your price

Price • Price flexibility Basic price Add-ons and extras Discounts Secondary sales Guarantees and warranties Refund policy Order cancellation terms Revoke action buttons • Dynamic pricing

Place • New distribution channels – swOt • Focus on multi-channel distribution • Mediation Pathways = Web rings Infomediaries Source: Andal-Ancion et al., 2003. The digital transformation. MIT Sloan Management Review, (summer), p. 37.

• Affiliate Partners • Atomisation • Virtual Worlds

Atomisation - example

Virtual world

3 Ps People (brand ambassadors, training and new skills (‌ + data, digital CRM, content) Processes – systems, stock control, CRM (standardization/automation, self-service, UGC, autoresponders, contact strategies, live chat/ask and answer, FQAs, text/email updates, virtual assistance) Physical evidence (website – look and feel and ease of use, develop credibility (trust) and then raise visibility)

Jakob Nielsen’s Customer Satisfaction factors 1.

2.

3.

4.

Delivery of relevant information Easy navigation Allowing download Updated content

8Ps - UGC All 7Ps + Partnership = 8Ps • • • • • • •

Product ratings Reviews Discussions Ask and answer Customer ads Customer virals Customer products (examples: YouTube, myideastarbucks.com, Constant Comedy, T-shirt (Tradless.com) – designed by people and sold to people – cars, football clubs)

Tip for the Exam • Review Chapter 2 (Chaffey and Ellis-Chadwick 2012, 2016), in particular understanding the micro-environment factors and actors within the micro-environment.

• Review Chapter 5 (Chaffey and Ellis-Chadwick 2012, 2016), particular understanding impact of digital/the Internet on 4Ps of marketing mix.

• Think about examples when revising!