DIM Strategy: Key Principles Digital (Interactive) Marketing (Lecture 3.2) Dr Elvira Bolat C113, Christchurch House, Talbot campus email@example.com @dimbsbu
Learning Outcomes • To understand how digital strategy is related to business/organisational strategy • To explore RACE as part of the DIM setting process • To learn setting SMART objectives
“As Global competition intensifies, an organisation’s performance & strategic positioning will become more dependant on its ability to successfully exploit information technologies” (DIM technologies, digital media)
Doherty and Ellis-Chadwick 2003)
What do you want to achieve? How are you going to achieve it?
Where do we begin?
Source: Weihrich, H., 1982. The TOWS matrixâ€”A tool for situational analysis. Long range planning, 15(2), p. 60
SMART objectives Search
Implementation & Evaluation
What business we are in and should be?
Purpose Mission Scope Direction Market Positioning CA
How should we compete?
How to integrate functions, channels?
Marketing mix Budgeting Implementation Control
Lecture 2.1: DVP = OVP – Online Value Proposition • Providing value/benefits to encourage usage of digital channels/media • Reinforcing brand propositions • Differentiate • Focus in communication
The Scope • • • •
Cost reduction and value chain efficiencies Revenue generation Channel partnership Communications and branding
Note! It has to be dynamic, see Chaffey and Ellis-Chadwick 2012, p. 201
Main models of DIM strategy setting • Logical rational planning • Pragmatic incremental • Subjective visionary
General & Global Conceptual A set of statements Lack measures Plain language
i.e. reinforce the image of a company as a market leader
i.e. secure company relationship with public
i.e. to fully book a fundraising event
DRIP • Differentiate – distinctiveness of the product • Reinforce – to maintain brand values: remind about the values, strengthen experiences, reassure • Inform – to raise awareness, to make known the product/service/brand • Persuade – to motivate/convince buying &/or repeating the purchase
Source: Chaffey and Smith, 2008.
How does a well written GOAL look like?
An active verb A quantifiable statement Identifies the public
Outcomes â€˘ What do you want to achieve?
Source: Smartinsights.com .
Key outcomes/KPIs in DIM Quality
Example: Sizzle (Reach and Engage) Goal and Knowledge KPI Generate mass (instant) awareness and peer-topeer recommendation around the launch of Special Cracker Crisps among women living in the UK
Example: Sell (Reach, Engage and Convert) Goal and Behaviour and Value KPI To generate sales of Galaxy S3 in the Middle East and North Africa
OBJECTIVES Clear measurable statements Emerge directly from Goals Drive strategic decision Suggest choice of tactics
• • • • •
Plain, clear language Simple and brief Public-focused Impact-oriented Singular
Link with knowledge outcome/KPI Focus on information and feelings i.e. know, understand, remember
• Acceptance Link with predisposition/conversion outcome/KPI Focus on feelings i.e. interest, attitudes
Link with task outcome/KPI Focus on physical behavior or verbal action (opinion) Bottom-line
Example: Awareness Objective To generate 7000 tweets (and double amount of retweets) among people visiting the Tweet Shop within the launch week period.
Example: Action Objective To generate 60% of user participation with a Ramadan app among the fans of a MENA region Samsung Facebook page.
DIM strategy setting Decision 1: Market and product development strategies Decision 2: Business and revenue models strategies Decision 3: Target marketing strategy Decision 4: Positioning and differentiation strategy Decision 5: Customer engagement and social media strategy Decision 6: Multichannel distribution strategy Decision 7: Multichannel communications strategy Decision 8: Online communications mix and budget Decision 9: Organisational capabilities and governance
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
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