Lecture 3 2 dim strategy focus on social crm and implementation for presenting 2016

DIM Strategy: Focus on social CRM and implementation

Digital (Interactive) Marketing (Lecture 3.2) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @dimbsbu

https://dimbsbu.wordpress.com

Learning Outcomes • Explore how the elements of the marketing mix varied online (back to discussing 4Ps vs 4Es) • Investigate digital and social CRM, i.e. multichannel marketing through CRM strategy

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

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

Why would you have a website?

Source: Chaffey and Smith, 2008.

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. Delivery of relevant information 2. Easy navigation 3. Allowing download 4. 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-short (Tradless.com) – designed by people and sol to people – cars, football clubs

Multi-channel strategy needs to be integrated with CRM strategy

E-CRM to Social CRM = Digital CRM

Key is to keep getting a customer engagement - a challenge

Forrester 2007

Benefits of Digital CRM • Cost-effective targeting (permission marketing) • Mass customisation of the marketing message • Increased depth and breath of information • A sense and respond approach • Loyalty programmes • Gamification – steps/levels approach, challenge/reward

Data • Personal and profile data • Transaction data • Communications data

Tip for assignment: check Chaffey and Ellis-Chadwick (2012, p.

328), Matrix of customer touch points for collecting and updating customer profile information!

Customer lifecycle management

Source: Chaffey and Ellis-Chadwick 2012, p. 324

Example: A sense and Respond Approach

Tip for assignment: see how and if you can use this

The contact strategy • Frequency (i.e. minimum once per quarter and maximum once per month) • Interval (i.e. a gap of at least one week or one month between communications) • Content and offers (limit on prize draws and offers) • Links (online and offline) • A control strategy

Social CRM – creating community • Linked to Advocacy • Main channels – Facebook page, Twitter account (see Asos), LinkedIn company profile and group, Google+ (see Ford), YouTube (see IBM) • A main (see hoda.co.uk/car) or separate website (see openforum.com)

Tip for the Exam • Review Chapter 5 (Chaffey and Ellis-Chadwick 2015), how digital affected these the marketing mix – 4Ps, 7Ps, 8Ps • Think about examples when revising!

Tip for developing DIM Strategy: 9 dots exercise • Draw 4 straight lines without lifting the pen