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Digital Marketing Communications
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What is digital? Before digital we had analog.
Analog can be described as service or a system that represents changing values as continuously variable physical quantities. We experience the world through an analog perspective. Eg vision with it s infinite gradation of shapes and colours. Digital is non-variable and finite. It utilizes discrete data points that are either on or off, ones or zeros. Computer science has helped us combine these discrete data points to simulate, augment our analog reality through several devices.
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A digital culture A digital culture cuts across boundaries, socio-economic classes, hierarchy, geographies. It is open, transparent and available to everybody. It is a way of life, a culture and a continuous process.
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Core values and Fundamental Attributes of the Digital Culture
Creativity Disruptive, Experimental, Innovative Equality Non-hierarchical, Flat, Democratic Empathy Responsive, Receptive, Adaptive Integrity Honest, Trustworthy, Consistent Knowledge Analytic, Data-driven Efficiency Agile, Proactive, Purposeful Openness Transparent, Collaborative, Authentic Unity Integrated, Holistic, Socially Responsible
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What is Digital Marketing Communications?
Digital marketing communications happens when you employ different communications mix using digital media in online or offline campaigns.
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What is digital marketing?
E-marketing Internet marketing Cyber marketing Online marketing Social media marketing Does it really matter?
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Principles of Digital marketing
Consumers and customers must be actively engaged as participants, not as passive viewers and targets. Marketers must move beyond the traditional metrics of reach and frequency. This requires better planning and a clear proposition. Marketers need to determine the mix of channels which is right for their marketing needs to engage participants around their personal preferences and desires. Digital marketers need to make relevant quality content their focus in order to generate sustained participant interest. Consumers will initiate and create content and marketers should encourage and reward content creation that is relevant to their brands. Messaging must be optional and voluntary and customized to participants indicated preferences. Paybacks would come when consumers share information through their network sites and virally with one other
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Principles of Digital marketing (cont’d)
Marketers would need to understand new media options which may have pay-for-performance metrics. Search would play a key role. Digital marketers must try to keep pace with participants in their conversation and use digital tools to influence, not dictate, the debate. Marketers would need to use more sophisticated approaches to connect digital and physical tuch-points – from integration of brand image to unification of each customer’s experience. Data would be the lifeblood of marketing. Marketers would use this data for detailed psychographic and behavioural profiling of consumers Marketers would deploy real-time analysis of data to make quick, constant and fact-based modifications to their digital marketing activities. Monitoring and measurement of the marketing mix would be enable to have more accountable marketing.
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Traditional marketing vs Digital marketing
Consumer as viewers Impressions/frequency Broadcast media Schedule-driven Marketer led Push marketing Traditional media Planning Managed PR Integrated marketing Sometimes data-enabled Post campaign tracking Partial ROI Consumers as participants Involvement/interaction Addressable channels Time shifted-anytime Consumer initiated Opt-in and share marketing New media planning Digital influence Unified marketing Always data – enabled Real-time tracking Optimization
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Growth of Digital marketing
Continents Population 2012 (mill.) Internet users 2000 (mill.) Internet users 2012 (mill.) Penetration % 2012 Growth % % internet users Africa 1073 5 167 15.6 3606.7 7.0 Asia 3922 114 1077 27.5 841.9 44.8 Europe 821 105 519 63.2 393.4 21.5 Middle East 224 3 90 40.2 2639.9 3.7 North America 348 108 274 78.6 153.3 11.4 Latin America 594 18 255 42.9 1310.8 10.6 Oceania/ Australia 36 8 24 67.6 218.7 1.0 Total 7018 361 2406 34.3 566.7 100.0
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Marketing has moved from ‘helping the seller to sell’ to ‘helping the customer to buy’
The internet is a ‘pull’ medium whereas internet ads are a ‘push’ medium
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What has led to digital marketing?
An Adobe study pointed out Two thirds of all marketers think their companies won’t succeed unless they have a successful digital marketing approach. Yet only 15% of marketing budgets are allocated to digital. 96% brands surveyed said that they will increase digital marketing budget allocation in the next 12 months Less than half of digital marketers feel proficient in digital marketing Just one in three marketers think their companies are highly proficient in digital marketing
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The Digital user Millenials will form 75% of the work fore by 2025 and would be actively shaping corporate culture and expectations Only 11% regard having a lot of money as a definition of success 84% say that helping to make a positive difference in the world is more important than professional recognition 92% believe that business success should be measured more than profit 90% view entrepreneurship as a mindset today, instead of the role of a business owner
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Types of Digital users Digital natives – They have an intuitive understanding of digital, but need to learn how to think strategically Digital immigrants – recognize the value of digital, but need to learn strategies, tactics and tools for its successful implementation Digital aliens – think strategically but need to experience the value of digital Digital integrator – have an expert command of digital and its strategic implementation
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Digital multitasking Content Grazing - accessing two or more screens for unrelated content (68%) Investigative spider-webbing – seeking content across several devices simultaneously (57%) Quantum journey – multiple screens are used independently to achieve a goal (46%) Social spider –webbing – focused on sharing content and connecting with others across devices (39%)
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The Digitally Integrated Organization
M Measurable I Integrated N Nimble D Disruptive S Strategic E Engaged T Transparent
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Online marketing objectives
Brand Development - where online presence complements and enhances the offline branding efforts of the organization. Revenue generation - where online presence increases revenue into the organization by direct sales, lead generation or direct marketing. Customer service/support – where the web is used to enhance the service and support offered to customers and potential customers.
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Brand development (KPIs)
Visitor numbers – more visitors means more people being exposed to the brand No. of visits by individuals – returning visitors might suggest brand loyalty How deep into the site visitors go – more pages accessed implies an interest in the brand’s offerings How long do visitors stay on the site – the longer they stay , the greater the affiliation to the brand
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Provision of after-sales service (KPIs)
Visits to and time on FAQ page – too many and too long suggest problems with the product/suggestions, whilst every visit might suggest offline cost savings How long a visitor stays on the site – a lengthy stay might suggest that the sought information is not easily available What down loads – might suggest what kind of specific information that customers are particularly looking for
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Lead Generation Conversion rate - % of visitors to website vs sales achieved/% of visitors to website who go on to contact firm vs sales achieved Promotions acted on – discount coupons downloaded ( which can then be identified to a sale) How many and which pages downloaded – More downloads might indicate greater interest How long a visitor stays on the site – lengthy stays might indicate greater interest
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Online sales Sales volume – Is the site generating income? If so, how much? Sales trends – time of day/week/month/year/location, etc. Average order size – bigger order sizes suggest customer satisfaction Average items per sale – fewer customers buying greater numbers is normally better (for logistical reasons) Conversion rates – sales (volume, items) per site visits Click stream – the way a visitor navigates their way around the site might indicate to cross-selling opportunities Repeat visitors – returning to buy after looking round or comparing prices
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Maximizing visitor numbers
Visitors numbers – falling, rising, constant Point of exit- home page or page of arrival might indicate content is of no interest Subscription numbers – more numbers means greater commitment to site or content Time of stay and depth of visit – more pages accessed and longer stays might indicate greater interest
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The web as a medium Medium To reach 25% penetration (years) Telephone
35 TV 26 Radio 22 Mobile 13 Internet 7
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Why should you have a web presence?
Your web presence can be done by creating your own website or use other sites (social media) for customers to get an opportunity to know your company. The website should be designed to focus on helping the customer and not so much the organization
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Principles of Website designing
What are the site’s objectives? Who are likely visitors to the audience? Why are they visiting the site? What need is being met?
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Why people shop online? Value- prices more competitive
Open- can shop any time Delivery – free delivery Speed – ‘usually next day’ Ease – easy to shop Range – stock availability Choice – ability to shop from a wide choice of goods Time-saving – takes much less time than physical shopping No crowd – can be done in the comforts of home Spend less on fuel – frequent visits to the market are minimized
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From CRM to SCRM CRM has been around since the late 80’s, but SCRM is in its infancy A CRM system uses digital technology to organize, automate and synchronize sales, marketing, customer service and technical support. It becomes a nerve centre that allows a company to manage with current and future customers. A SCRM system is based on the ability of a company to meet the personal agendas of customers, while meeting the objectives of the company’s own business plan. It is aimed at customer engagement, rather than customer management. It is focused on ‘doing the right things’ and planning to ‘do things right’.
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Why SCRM? 89% of customers have stopped doing business with a company after experiencing poor customer service. A customer is 4 times more likely to buy from a competitor if the problem is service related versus price or product related. 55% of customers would be willing to pay more for abetter customer experience. A 10% increase in customer retention results in a 30% increase in the value of a company
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Outbound and Inbound Marketing
Outbound marketing is when marketers try to reach their target audience through print and TV advertising, jun mail, spam, trade shows, seminars, blasts, purchased lists, internal cold calling and outsourced telemarketing. Inbound marketing is a holistic data-driven strategy that helps organizations attract and convert visitors into customers by providing personalized, relevant information and content instead of interruptive messages. By following through the sales experience with ongoing engagement, inbound pulls consumers toward and organization’s products and services by aligning published content with consumer interests
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Why is this necessary? 44% of direct mail is never opened; 86% of people skip through TV commercials. 84% of year olds have clicked out of a website because of an ‘irrelevant or intrusive ad’. Inbound marketing dominated organizations experience a 62% lower cost per lea than outbound marketing organizations. In 2013, 60% of companies adopted some element of the inbound methodology into their overall strategy; 41% of marketers confirm inbound produces measurable ROI
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Content creation SEO Social media
Inbound marketing initiatives combine three core lead generation techniques into one integrated approach Content creation SEO Social media
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The Traditional Sales Funnel
Visitor comes to website If I engage X number of contacts, then I should be able to generate Y leads, which when converted leads to Z sales The sales funnel is merely a numbers game Lead clicks on call-to-action Lead interacts with company Company pre-qualifies lead Sale is closed
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The Digital Involvement Cycle
The Digital Involvement Cycle more accurately reflects the customer decision process; the customer moves through the pre-decision process to commitment through the post-decision process to champion. The customer decision process is not linear but iterative, building incrementally upon all inputs and moving through repeated cycles until a definite action is taken. At this point the second cycle begins as the new customer grows into a loyal consumer and shares customer experience on social media advocating for and ultimately championing the brand
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Digital Involvement Cycle
Awareness Interest Involvement Commitment Loyalty Advocacy Champion
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From paid, owned and earned media to converged media
Definition Examples The Role Benefits Challenges Owned Media Brand controls the channel Website Mobile site Blog Facebook Build for longer term relationships with potential and existing customers and earned media assets Control Cost efficiency Longevity Versatility Niche audiences No guarantee of results Company communication not always trusted Takes time to scale Paid media Brand pays to leverage the channel Display ads Paid search Sponsorships Shift from a foundational element to a catalyst that feeds owned media and creates earned media On demand Immediacy Scale Clutters the user experience Declining user experience Poor credibility Earned media Customers become the channel WOM Buzz ‘Viral’ Listen and respond- earned media is often the result of well-executed and well-coordinated owned and paid media initiatives Most credible Key roe in most sales Transparent and sustaining No control Can be negative Unpredictable scale Hard to measure
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Integrated Digital Marketing
A marketing action is digital if it is reliant on a digital medium to execute its specific functions or complete its intended action. To stay competitive, companies cannot afford to have marketing silos. Digital marketing must be integrated.
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IDM Strategic Model Define and Establish Convey and Promote
Connect and Convert Measure and Refine Strategic Analysis Are your organization values and goals in alignment? Are all the elements of the Brand’s blueprint analysis consistent and integrated with organization values and goals? Have you taken time to perform an IDM strategic analysis? Is your content engaging and effective? Does it reflect your organization values and goals? Are your reaching your intended audience? Are you interacting with them? Is your online presence optimized for mobile? Does each of the seven stages of Digital Involvement Cycle correlate to the goals, targets and tactics designated for each stage? For each stage of the Digital Involvement Cycle, are analytics monitored and measured and KPIs evaluated against goals? Tactics Clarify Values Define Goals Shape Brand Message Establish an online presence Content marketing Social media marketing Paid social promotion SEO Paid search SoLoMo Lead Nurturing Lead Conversion Website performance management Social performance management Integrated performance management
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