DIGITAL MARKETING STRATEGY

DIGITAL MARKETING
STRATEGY
a to z
by Deborah Bayles, Founder/CEO
© Copyright 2014, Deborah L Bayles
prepared for Westcott Courses
and
Brandman University
INTRODUCTION
Today all marketing involves digital marketing. The ability of buyers to interact
with sellers via the Internet has changed traditional marketing forever, and
today’s marketing managers must become digital marketing experts or they will
rapidly become obsolete.
Push vs. Pull Marketing Models
Traditional marketing has always been based on a “push” model: advertising,
direct mail and other media push a highly controlled one-way message to the
marketplace. Traditional marketing dictates to buyers what they should want and
need.
Digital marketing is very different. Digital marketing uses the Internet and other
digital channels to conduct two-way conversations with buyers. The old “push”
model of traditional marketing has been replaced by the “pull” model of digital
marketing, where buyers are invited to tell sellers what they want and need.
Does this mean that traditional marketing is dead? No, traditional marketing
provides some valid frameworks on which digital marketing can build. The
traditional disciplines of market research and strategic planning are still vital, but
they must expand to include digital marketing’s new, vibrant multichannel
approach.
What This Means for You
The opportunity for digital marketing experts who are also solidly grounded in
traditional marketing is tremendous. Whether you’ve been in marketing
management for years or you’re just starting out, gaining verifiable digital
marketing expertise is critical to your career success.
In this paper I outline the evolution of the traditional and digital marketing mix by
way of the “alphabet” of letters that marketers have used through the years when
developing strategic marketing frameworks. We’ll see how the best of these
letters have come together to create digital strategy “words,” and then see which
“I” you’ll choose to be in the digital marketing landscape.
© Copyright 2014, Deborah L Bayles
CONTENTS
1
The Original Marketing Alphabet
2
New Digital Marketing Frameworks
3
Digital Marketing Strategy Words
4
Which “I” Will You Choose to Be?
ABOUT THE AUTHOR
Deborah Bayles has 25+ years of experience in business,
marketing and education, including founding and running an
Internet application development firm and two marketing
agencies. She authored two best-selling e-commerce books
(published by Prentice-Hall) and has been a keynote speaker at
conferences worldwide.
She developed and taught more than 20 unique e-business
courses at the University of California, Irvine, and has also
taught e-business at the University of California, San Diego, the
University of California, Riverside, and at the Singapore
Institute of Management. She developed the ECommerce/Digital Marketing curriculum for the Business
Education department of Cuesta College, and has been a
faculty member there since 2009.
© Copyright 2014, Deborah L Bayles
1
THE ORIGINAL
MARKETING
ALPHABET
4Ps & 4Cs
© Copyright 2014, Deborah L Bayles
THE MARKETING ALPHABET
The traditional marketing “alphabet” resulted from attempts to clearly
define a conceptual framework for marketers to plan the best approach to
each of their target markets. This conceptual framework is called the
marketing mix.
4Ps Grow to 7Ps, Then to 8Ps
The marketing mix was first referred to during an American Marketing
Association conference in 1949, but gained popularity in the early 1960s.
The first conceptual framework, and the birth of the first letters in the
marketing alphabet, came from Canadian Jerome McCarthy (1960) who
developed the 4Ps, product, price, place, promotion.
These 4Ps later came under fire for being too product-centric. Booms and
Bitner (1981) tried to mitigate this problem by developing the 7Ps, also
called the service mix. They contended that the extra Ps, representing people,
processes and physical evidence, were necessary in the delivery of services.
Later on, Kenichi Ohmae (Smith, 1996) said that no company can succeed
globally without partners, and added an 8th P, for partnerships, to the mix.
The 4Cs Strike Back
Lautenborn (1990) also thought that the original 4Ps was too productcentric, but he struck back by suggesting a customer oriented framework as
a solution. His 4Cs are customer, cost, convenience and communication.
See the following diagrams for more detail on what these traditional
strategic marketing frameworks are and how the various components
interact.
© Copyright 2014, Deborah L Bayles
Product
Price
 Digital value
 Experiencing the
brand
 Price transparency
 New pricing models
Place
 Representation
 New distribution
models
Process
 Optimizing internal
and external
processes through
the web
Product
Oriented
8 Ps
Physical
Evidence
Promotion
 Online vs offline
mix
 Integration
People
 Online physical
evidence
 Integration
 Resourcing and
training
 Contact strategies
Partnerships
 Managed
marketing alliances
• Jerome McCarthy (1960) coined the term 4Ps: product,
price, place, promotion to define the marketing mix.
• Booms and Bitner (1981) developed the 7Ps to emphasize a
service mix. The extra Ps are people, processes and physical
evidence.
• Kenichi Ohmae (Smith, 1996) said that no company can
succeed globally without partners, thus the 8th P,
partnerships, was added to the mix.
Lautenborn (1990) suggested the 4Cs customer
oriented framework as a solution to the productcentric approach of the earlier 4Ps (later modified
to become the 7Ps, then the 8Ps).
Customer
Cost
Customer needs and
wants (from the
product).
Cost to the customer
(price).
Communication
Convenience
Communication
(promotion).
Convenience (relative
to place).
2
NEW DIGITAL
MARKETING
FRAMEWORKS
4Es, 5Is, 4Is & 6Cs
© Copyright 2014, Deborah L Bayles
THE MARKETING ALPHABET
GOES DIGITAL
It’s about the Customer
The largest differentiator between traditional marketing and digital marketing
strategy is its orientation. Traditional marketing focuses on products and
processes, whereas digital marketing focuses on the customer. This is a crucial
difference that has permeated the development of the new digital marketing
frameworks and their alphabets.
The 4Es
Lautenborn’s 4Cs was a definite step toward customer orientation, and
Rothery (2008) took this one step further by developing the 4Es framework,
which is comprised of experience, exchange, evangelism, and everyplace.
The 5Is and 4Is—The Is Have It
Peppers and Rogers (1997) were pioneers in customer orientation when they
introduced the 1:1 philosophy of marketing as a personal conversation
between seller and buyer. They define their framework using 5Is: identification,
individualization, interaction, integration, and integrity.
Forrester Research put forth its own customer-centric framework with 4Is of
customer engagement: involvement, interaction, intimacy, and influence.
6Cs and the OVP
Building upon the Es and Is above, Dave Chaffey (2004) suggested 6Cs of
customer motivation to help define a company’s Online Value Proposition
(OVP). The OVP is an important driver of a company’s marketing tactics.
See the following diagrams for more detail on these frameworks.
Experience
Every
place
Evangelism
Exchange
Rothery (2008) developed the 4Es framework as
a follow-on to Lautenborn’s (1990) 4Cs
framework.
Experience
Exchange
A product is an
experience (including
online experience).
Price (as money or
credit is exchanged for
product or services).
Every place
Evangelism
Place or distribution
should be everywhere
the customer wants it.
Promotion becomes
evangelism.
Identification
Individualization
Peppers and
Rogers 5Is (1997)
Interaction
Integration
Integrity
FORRESTER’S 4IS OF CUSTOMER ENGAGEMENT
INVOLVEMENT
INTERACTION
INTIMACY
INFLUENCE
What to Track
•Site visits
•Time spent
•Pages viewed
•Search
keywords
•Navigation
paths
•Site logins
•Contributed
comments on
blogs
•Quantity/frequency of written
reviews, blog
comments,
forum
discussions, and
UGC
•Sentiment
tracking on
third-party sites
(blogs, reviews,
forums, etc.)
•Sentiment
tracking of
internal
customer
contributions
•Opinions
expressed in
customer
service calls
•Net promoter
(NP) score
•Product/service
satisfaction
ratings
•Brand affinity
•Content
forwarded to
friends
•Posts on highprofile blogs
•eCommerce
platforms
•Social media
platforms
•Brand
monitoring
•Customer
service calls
•Surveys
•Brand
monitoring
•Customer
service calls
•Surveys
How to Track
•Web analytics
Content
 Right content
 Right context
 Right media
Customization
 Personalization
according to
individuals or groups
Community
 Many-to-many
social networks
Customer
Motivation
6 Cs
Cost
reduction
Convenience
 Internet perception
of lower-cost place of
purchase
 24/7 availability of
a service
Choice
 Wider choice of
products and suppliers
than traditional media
• Chaffey (2004) suggests 6Cs of customer motivation to help
define the Online Value Proposition (OVP)
3
DIGITAL
MARKETING
STRATEGY
WORDS
PRACE & SOSTAC
© Copyright 2014, Deborah L Bayles
FROM LETTERS TO WORDS
So, we’ve looked at a bewildering array of marketing strategy frameworks, all
designated by sequences of single letters as their creators strived for
mnemonic cleverness. This alphabet soup has been useful for prodding
marketing strategists into placing the customer’s requirements in the
prominent position, and for forcing all of us to realize that the blended
push/pull of online conversations is at the heart of effective multichannel
strategies.
But here is where we need to put the “alphabet” to use in creating some digital
marketing “words.” Here is where we need words that describe a
comprehensive A to Z digital marketing strategy. Fortunately, Dave Chaffey and
PR Smith, two digital marketing thought leaders, have created the right words:
PRACE and SOSTAC.
PRACE
PRACE stands for Plan, Reach, Act, Convert and Engage. Dave Chaffey also
refers to his framework as RACE™, but the P for Planning is an indispensible
step. Chaffey’s (P)RACE™ planning system was developed to help create
actionable plans using integrated communications to engage and persuade
customers, based on understanding customer needs using analytics and
insight. It is often used in conjunction with SOSTAC, as the two planning
systems are complementary.
SOSTAC
PR Smith’s SOSTAC® Planning System is also a planning process framework to
help structure and manage implementation of digital marketing plans.
SOSTAC® stands for Situation, Objectives and Strategy, Tactics, Action and
Control.
The best way to see how these two planning systems operate is by taking a
look at the graphics on the next two pages.
© Copyright 2014, Deborah L Bayles
4
WHICH “I” WILL
YOU CHOOSE
TO BE?
© Copyright 2014, Deborah L Bayles
THE 3Is OF THE
DIGITAL MARKETER:
• INNOVATOR
• INTEGRATOR
• IMPLEMENTER
WHICH “I” WILL YOU
CHOOSE TO BE?
A February 2014 report by Forrester Research states that “digital” is no
longer a differentiator for marketers and agencies. Tomorrow’s marketing
leaders will help their companies revolutionize their customer strategies
by playing one of three roles: Innovator, Integrator or Implementer. Which
I will you choose to be in the digital marketing landscape?
Innovator
You develop disruptive creative strategies that are truly groundbreaking.
Integrator
You integrate the strategies that have been developed across multiple
marketing channels so that branding is consistent.
Implementer
You implement the tactics that have come out of the strategic marketing
plan.
© Copyright 2014, Deborah L Bayles
WHY YOU SHOULD EARN YOUR
DIGITAL MARKETING CERTIFICATE
WITH BRANDMAN UNIVERSITY
Brandman University is
part of the Chapman
University system, a
highly regarded,
regionally-accredited
university system with
global recognition.
Brandman University
offers Professional
Development Units
(PDUs), not CEUs, for
this Certificate. PDUs
are regarded by other
universities as higher
quality and more
transferrable.
Courses are offered in
a one-month format,
allowing you to
complete your
Certificate in as little
as six months, or to
progress at a slower
pace.
Learn from an expert
instructor with more
than 25 years of
industry and teaching
experience. Course
material is also
supplemented by the
insights and research
of other thought
leaders.
The Certificate is
offered 100% online
through a userfriendly Learning
Management System.
There is no need to
travel, pay for child
care or interrupt your
work schedule.
Courses are offered
year-round, with a
new course section
starting on the first of
each month. Start
your certificate
program at any point
throughout the year.
CALL ONE OF OUR COURSE ADVISORS TODAY AT:
1 (805) 489-2831
OR REGISTER ONLINE AT:
WESTCOTTCOURSES.COM
The Digital Marketing Certificate is offered through Brandman
University. Brandman University, part of the Chapman
University system, is regionally accredited through the Western
Association of Schools and Colleges, and has 26 campuses
throughout California.
Westcott Courses provides the instruction and Brandman
University provides Professional Development Units (PDUs) for
each course. Your certificate and official transcript will be
issued by Brandman University.
© Copyright 2014, Deborah L Bayles

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