1. Lecture 1
Overview of Digital Marketing Strategy

2. What is Marketing ? Segmentation Targeting Positioning 4 P’s Product
Price
Promotion
Placing

3. Segmentation
Group of customers who are similar in their buying behavior
Examples:
What products they want
How important price is to them
How important brand is to them
How old they are
Where they live
How they think
Segment

4. Why segment? “Jack of all trades but master of none”
Differentiation and focus
Competitive advantage

5. Segmentation is a match-making process
So, …
Segmentation is a match-making process
Examples:
Matching competitive advantage to customers who want it
Price advantage
Reliability advantage
Performance advantage
Value advantage
Performance and value advantage

6. Targeting with matched segments Example 1 Example 2
Communicating
with matched segments
Through right media
Example 1
Example 2

7. Why Target ? Communicating with the matched segments generates sales
mismatched segments wastes money

8. Targeting is key to increasing efficiencies and ROI
So, …
Targeting is key to increasing efficiencies and ROI
Examples
Kia should target those who care about price
Toyota should target those who care the most about reliability
Porsche should target those who crave performance ….

9. Positioning Multiple brands may go after the same segments
Brands need to differentiate themselves by offering something
More to the segments
That competitors can’t
What does Target offer?

10. Why Position? Positioning ensures that the targeted segments
have a clear idea of how and why you are better
prefer your brand over competitors
stay loyal to your brand

11. So, … Positioning is key to your market share Building Sustaining
Expanding
your market share

12. Positioning through
Digital Marketing

13. What is the role of the 4 P’s ?
delivering the right product to the targeted segments
Product:
Setting and maintaining the right and sustainable price to the targeted segments
Pricing:
Ensuring that the target segments know about the products
Promotions
Ensuring that the target segments have access to the product
Placing

14. each of the 4 P’s is right for the targeted segments
Successful Marketing
Requires that
each of the 4 P’s is right for the targeted segments
the 4 P’s are consistent with each other and reinforce each other
Every action for every P has to reinforce the positioning message
Example

15. Classic (pre-digital) Approaches to Successful Marketing - 1
Mostly indirect methods
Demographics
Example: Price-sensitive consumers will have
lower to middle-income
be young to early middle-age
clerical to lower-rung white-collar jobs
larger families
Geographics
Psychographics
Segmentation

16. Classic (pre-digital) Approaches to Successful Marketing-2
Select one or more segments
Example: Focus groups
Research the segments
Understand needs and desires of selected segments
Develop the right product at the right price
Promote through the right media
Distribute through the right channels
4 P’s

17. The brushes were too broad!
Problem
Not all consumers with the same demographics, geographics, or psychographics have the same desires and needs.
Hit or miss
The brushes were too broad!

18. Solution
Take an upfront and close look at each prospective customer
Understand exactly what that customer wants
Select the customer if there is a match with our competitive advantage
Target the customer with a very personalized marketing mix of the 4 P’s
Finer brush

19. Barrier to Personalization
No economies of scale
Cost

20. How Digital Marketing Gets Businesses over the Barrier

21. Consumers leave digital breadcrumbs through interactions with
Data
Family
Friends
Co-workers
Businesses
Consumers leave digital breadcrumbs through interactions with

22. Deep Personal Insights
who they are
what they like
what they need
what is most important to them
what they themselves may not know that they wanted

23. Opportunity No need to use broad brushes to define coarse segments
Treat each individual as a ‘segment’
Develop personalized marketing mixes to all individuals

24. Key to Unlock the Opportunity
Digital marketing

25. Need for New Skills Spotting the right data
Collecting the data
Data  Individual Profiles
Profiles  Cost-effective Personalized Marketing Mixes
Loyalty  Personalized monitoring  continuous improvement of personalized marketing mixes

26. Digital Marketing Marketing Computer Science Linguistics Statistics
Smart manufacturing

27. Definition of Digital Marketing
Use of data generated on and by consumers in digital or other formats to
better understand customers
personalize the marketing mix
Increase marketing effectiveness
Improve marketing efficiencies

28. Other Uses of Digital Marketing

29. Use digital data to improve marketing mix for targeted segments as a whole
Example
User Generated Content (UGC)
Using UGC to improve the product

30. Use Digital Marketing to Improve Promotions
Social Advertising
Example

31. Reduce costs of customer service
Use Digital Marketing to Reduce Costs
Example:
Reduce costs of customer service

32. Improving one or more of the 4 P’s for segments as a whole
Hierarchy of Digital Marketing Possibilities
Personalization
Improving one or more of the 4 P’s for segments as a whole
Cost reductions

33. Budgeting and Valuing Social Media

34. Social Media Use by Numbers
400 Million daily users
95 Million photos and videos per day
500 Million tweets per day
328 Million monthly users
189 Million daily users
1.9 billion monthly users
10 Million daily users
106 minutes per day
1 billion users
1 billion hours of video watched each day
135 Million reviews as of Q2, 2017
74 million mobile and 83 million desktop visitors each month
166 Million monthly users
10 billion videos watched per day

35. Consumer endorsement of products Opportunity to build brand and sales
Reach a lot of eyeballs
Consumer endorsement of products
Opportunity to build brand and sales

36. Curse of Plenty? Too many social media chasing people
There’s limited discretionary time during the day
Leads to low consumer engagement
E.g., Less than 15 seconds spent reading a tweet

37. Increases the importance of measurement and Understanding the ROI on social media spend

38. Measurement Metrics Vary with Platform

39. Two types of Investment in Social Media Advertising
Earned
Paid

40. Earned ‘Free’ Advertising Not really free
Need to spend time (therefore money) on creating the posts
Types of posts
Posts on Facebook fan pages
Pictures and videos on Instagram
Tweets on Twitter
Posts on Snapchat
Videos on YouTube

41. Paid
Paid Advertising
All social media platforms provide opportunities to run paid advertising campaigns

42. Topics/Forums Created Number of Group Members or Fans
Examples of Metrics to Measure Effectiveness of Earned and Paid Advertising on Social Media
Retweets
Videos viewed
Invites sent
Comments posted
Topics/Forums Created
Number of Group Members or Fans
Reposts (“Shares“)

43. Facebook Metrics

44. Earned Advertising Metrics: Fan Page Likes and Followers

45. Likes Shares Comments Reactions
Earned Advertising Metrics (continued):
Fans’ Activities
Likes
Shares
Comments
Reactions

46. Objectives for Paid Advertising on Facebook
Source:

47. Measurement Metrics for Paid Advertising on Facebook

48. Audience Outcomes – Who is seeing the Ad?
Demographics
Age
Gender
Location
Education
Job
Household income
Home ownership
Household size
Home market value
Lifestyle
Spending methods
Retail spending
Online purchases
Purchase behavior

49. Video views Page Engagement
Audience Outcomes - Did the ad engage the viewers?
Video views
Page Engagement
3-second
10-second
30-second
Total number of actions that fans took on the company’s Facebook page
Likes
Posts
Loving a post
Clicking a link …

50. Brand Outcomes - Awareness
Number of times the ad was seen
Perception of brand before and after ad campaign
Absolute change (e.g., is it now seen as an upscale brand?)
Relative change (e.g., is it now seen as better than competitor A?)
Increase in brand interest
‘Lift’
Increase in purchase interest
Purchase Propensity
Recall
Brand Ad

51. Sales Outcomes Sales Conversions
How many customers visit the product page and buy after seeing the ad?
Lift
What is the % change in sales because of the ad?
Attribution
How much of the change in sales can be attributed to the ad?

52. Facebook defines 291 terms and metrics for advertisers
Glossary of Definitions and Measurement Metrics for Facebook Advertising
Facebook defines 291 terms and metrics for advertisers
You can review them in this spreadsheet:

53. Instagram Metrics

54. Same as Facebook Metrics
Since Instagram is owned by Facebook, the same metrics are used and available for both

55. Twitter Metrics

56. Earned Advertising Number of followers Tweets
Number of tweets about brand
Number of retweets of tweets by brand
Number of likes of tweets
Number
Valence of tweets by followers about brand
Negative, Neutral, Positive

57. Promoted (click to see definitions by Twitter)
Types of Paid Advertising on Twitter
Promoted (click to see definitions by Twitter)
Accounts
Tweets
Promoted moments
Promoted Videos
Trends

58. Measurement Metrics for Paid Advertising on Twitter

59. Clicks and Conversions
# of clicks on links in the tweet
Resonance score
# of user interactions with tweet
Followers
Cost per follow
$$ spent on promoting the tweet/#of followers gained
Conversions
Cost per click (CPC)
$$ spent on promoting the tweet/# of clicks
Cost per lead (CPL)
$$ spent on promoting the tweet/# of new customer leads
Cost per acquisition (CPA)
$$ spent on promoting the tweet/# of new customers acquired
Visit for more

60. YouTube Metrics

61. Earned Advertising – response to video(s) you upload
Number of Views of Video
Engagement
Number of subscribers
Number of likes
Number of shares
Number of embeddings
Number of incoming links
Comments
Number of comments
Valence of comments
Negative, Neutral, Positive

62. Types of Paid Advertising on YouTube
In Stream
Runs before someone sees a video
Discovery
Runs when someone is searching for a video
Bumper
Only 6-seconds long
Can run before, during, or after someone sees a video on the phone
Visit to learn more

63. Measurement Metrics for Paid Advertising on YouTube

64. Views, Costs and Conversions
Proportion of viewers (this is the “number of impressions”) who
Watch the ad fully without skipping
Interact with the ad
Respond to the call-to-action
Cost
Cost per view (CPV)
$$ spent for each complete viewing of the ad
Conversions
# of visits to your website
# of purchases on your website after arriving there from your ad on YouTube

65. Importance of Testing and Experimentation

66. Why?
Whatever you share has to capture attention and move the consumer to action rapidly
Photos, posts, videos, … need to engage and convey the message within a few seconds

67. Visual attractiveness
Key Principle for Visual Social Media
Visual attractiveness

68. Which version is more engaging?
Source: chrispetrick.wordpress.com
Source: desktopwallpapers.com

69. Using Instagram Filters

70. Source: Thenorthface page on Instagram

71. Source:

72. Source:

73. Facial Dominance

74. Source: The Wall Street Journal

75. A Study on how Faces in Photos Affect Response to Product photos from Instagram Curated on Brand Sites
33 online retailers
Categories
Beauty
Housewares
Jewelry
Price range: $3 - $3285
87,419 displayed Instagram photos
Over 25 million views
Over 550 thousand product page visits from photos
Presence and prominence of faces suppress product exploration

76. Real Results from Improved Photo Selection
Category
Increase in Conversion Ratio
Increase in Average Order Value
Increase in Revenue
Increase in click through rate in Facebook retargeting ads
Clothing
60%
$700,000
Jewelry, accessories and gifts - Client 1
42%
23%
Jewelry, accessories and gifts - Client 2 9% 7%
$155,000
Mass Merchandise
73%
Discount Retail
110%
Bicycles and accessories
80%
$50
Furniture and Home Goods
43%

77. Drivers of Visual Attractiveness
Colors
Saturation
Brightness
Objects
Arrangements
Faces
Context

78. Key Principle for Textual Social Media
Quick readability

79. Tweet 1: Tweet 2 Which Version?
FIRST ON CNN: After Petraeus scandal, Paula Broadwell looks to recapture ‘normal life.’
First on CNN: Broadwell photos shared with Security Clearance as she and her family fight media portrayal of her [same URL]
Tweet 1:
Workers, families take stand against Thanksgiving hours:
Staples, Medieval Times Workers Say Opening Thanksgiving Day Crosses the Line [same URL]
Tweet 2
Source: Tan, Chenhao, Lillian Lee, and Bo Pang. "The effect of wording on message propagation: Topic-and author-controlled natural experiments on Twitter." arXiv preprint arXiv: (2014).

80. Key Principles for Quick Readability

81. Number of retweets: 5 Number of retweets: 29
Frequent use of Topic-Related words
Number of retweets: 5
FIRST ON CNN: After Petraeus scandal, Paula Broadwell looks to recapture ‘normal life.’
Number of retweets: 29
First on CNN: Broadwell photos shared with Security Clearance as she and her family fight media portrayal of her [same URL]

82. Number of retweets: 46 Number of retweets: 27
Early Location of Topic-Related Words
Number of retweets: 46
Workers, families take stand against Thanksgiving hours:
Number of retweets: 27
Staples, Medieval Times Workers Say Opening Thanksgiving Day Crosses the Line [same URL]

83. Study 14,148 tweets 62 brands Automobile Food & beverage Dining
Airline categories.
Five topics
Brand news
Events
Promotions
Time-sensitive announcements
Calls-to-action
9.1% % average increase in the number of retweets

84. Principle 1 Principle 2 Principle 3 Principle 4
Overall, four principles for improving ROI on Investments in Social Media
Principle 1
Be clear about your goals for the investments
Principle 2
Develop metrics for measuring whether you are reaching your goals
Principle 3
Measurement metrics should be based on cost per unit of the metric (e.g., cost per view)
Principle 4
Test and continuously experiment to improve your campaigns and optimize your spending