Eighth Edition

DIGITAL
MARKETING
Dave Chaffey
Fiona Ellis-Chadwick

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
Brief contents

Preface xiii
About the authors xxiv
Acknowledgements xxvi

Part 1 Digital marketing fundamentals 2

1 Introducing digital marketing 4

2 Online marketplace analysis: micro-environment 45
3 The digital macro-environment 92

Part 2 Digital marketing strategy development 134

4 Digital marketing strategy 136

5 Digital branding and the marketing mix 189
6 Data-driven relationship marketing using digital platforms 233

Part 3 Digital marketing: implementation and practice 282

7 Delivering the digital customer experience 284

8 Campaign planning for digital media 347
9 Marketing communications using digital media channels 393
10 Evaluation and improvement of digital channel performance 461

Glossary 494
Index 523
Publisher’s Acknowledgements 531
Contents

Preface xiii Case study 1 Boo hoo: learning from Boo.com –

About the authors xxiv the largest European dot.com failure and the
Acknowledgements xxvi success of Boohoo.com 37
Summary 42
Exercises 42
Part 1 Self-assessment exercises 42
Digital marketing Exam and discussion questions 43
fundamentals 2 References 43
Weblinks 44

1 Introducing digital marketing 4 2 Online marketplace analysis:

Learning objectives and topics 4 micro-environment 45
Introduction: how has digital marketing Learning objectives and topics 45
transformed marketing? 5 Introduction to online marketplace analysis 46
How will this text help me? 5 Customer journeys and the online marketplace 46
What is digital marketing? 5 Situation analysis for digital marketing 47
Paid, owned and earned media 6 The digital marketing environment 48
Context – the 7Ds of digital marketing 8 Digital marketing insight 2.1
Digital marketing goals and strategy 9 Resources for analysing the online marketplace 50
Goals of digital marketing 9 Customers: understanding how they interact
Direct-to-consumer communications and with digital markets 52
e-commerce 12 Digital marketing insight 2.2
Key challenges of digital communications 14 From share of search to share of searches –
Digital marketing insight 1.1 evaluating search marketing effectiveness 55
Social commerce – how much do social Customer analysis to understand the digital
networks influence purchase? 14 consumer 56
Introduction to digital marketing strategy 15 Demand analysis and conversion marketing 58
Key features of digital marketing strategy 15 Implications for marketing planning:
Business and revenue models 16 conversion models 58
Different forms of functionality of digital presence 16 Customer choice and digital influence 60
Challenges in developing and managing digital Customer characteristics 62
marketing strategy 17 Social media and emotions 65
A strategic framework for developing a digital Personas 66
marketing strategy 18 The buying process 67
Digital marketing audiences and buyer behaviour 21 Competitor analysis 70
Benefits of digital media 22 The shape and nature of online competitive markets 71
Digital devices and digital platforms 27 Competitor analysis and benchmarking techniques 73
Digital platforms 28 Suppliers, publishers, intermediaries and
Digital media 28 influencers 76
Introduction to digital marketing communications 28 Publishers 76
Key communications concepts for digital marketing 31 Intermediaries 77
Digital data 34 New channel structures 77
Digital marketing technology 35 Digital business models 79
viii Contents

Digital revenue models 80 Exercises 130

Digital publisher and intermediary revenue models 81 Self-assessment exercises 130
Forecasting revenue for an online business 82 Exam and discussion questions 130
Case study 2 Creating the beauty that moves References 130
the world 84 Weblinks 133
Summary 87
Exercises 87
Self-assessment exercises 87
Part 2
Exam and discussion questions 88 Digital marketing strategy
References 88 development 134
Weblinks 91

3 The digital macro-environment 92 4 Digital marketing strategy 136

Learning objectives and topics 92 Learning objectives and topics 136
Introduction to macro-environment forces 93 Introduction 137
The rate of environment change 95 What is a digital marketing strategy? 138
Technological forces 96 Digital marketing strategy as a channel marketing
A short introduction to digital technology 96 strategy 138
URL strategy 97 Which digital marketing activities should have focus? 139
Web standards 99 Why are a digital marketing strategy and digital
Selecting a martech stack for a business 99 transformation needed? 141
Cybersecurity, blockchain and digital currencies 101 Digital marketing insight 4.1
Digital marketing insight 3.1 Is a digital marketing strategy needed in the
The main website security risks 102 post-digital world? 142
Emerging technologies 105 Challenges of managing digital marketing 143
Assessing the marketing value of technology How to structure a digital marketing strategy 145
innovation 105 Situation analysis 148
Legal forces 108 Internal audits of digital marketing 148
Legal activities can be considered unethical 108 Customer research 150
1 Data protection and privacy law 108 Digital marketing insight 4.2
Digital marketing insight 3.2 Consumer profiles: segmenting digital audiences 150
Understanding cookies and the cookieless future 112 Resource analysis 152
2 Disability and discrimination law 115 Competitor analysis 153
3 Brand and trademark protection 115 Intermediary analysis 153
4 Intellectual property rights 116 Assessing opportunities and threats 153
5 Contract and distance-selling law 118 Setting goals and objectives for digital
6 Online advertising law 118 marketing 154
Social forces 119 The online revenue contribution 156
Social exclusion 119 Setting SMART objectives 157
Digital minimalism and digital addiction 120 Frameworks for objective setting 158
Digital marketing insight 3.3 Strategy formulation for digital marketing 160
Digital minimalism and digital addiction 120 Decision 1: Market and product development
Economic forces 122 strategies 162
Market growth and employment 122 Decision 2: Business and revenue models
Economic disruption and the COVID-19 pandemic 123 strategies 164
Political forces 124 Decision 3: Target marketing strategy 165
Political action and control 125 Decision 4: Positioning and differentiation strategy
Internet governance 126 (including the marketing mix) 168
Taxation 126 Decision 5: Customer engagement and social
Tax jurisdiction 127 media strategy 171
Case study 3 Social media and the changing face of Decision 6: Multichannel distribution strategy 172
celebrity influencers 127 Digital marketing insight 4.3
Summary 129 Retail digital channels and mixed-mode buying 173
 Contents ix

Decision 7: Multichannel communications strategy 174 People, process and physical evidence in a
Decision 8: Online communications mix and budget 176 digital marketing context 218
Organisational issues of strategy implementation 177 People 219
Assessing different digital initiatives including Process 221
marketing technology 178 Physical evidence 222
The online lifecycle management grid 180 Case study 5 Spotify streaming develops new
Case study 4 ASOS shifts the focus of high-street revenue models 223
retailing to enhance the customer experience 181 Summary 226
Summary 184 Exercises 227
Exercises 185 Self-assessment questions 227
Self-assessment exercises 185 Exam and discussion questions 227
Exam and discussion questions 185 References 227
References 186 Weblinks 232
Weblinks 188
6 Data-driven relationship marketing
5 Digital branding and the using digital platforms 233
marketing mix 189 Learning objectives and topics 233
Learning objectives and topics 189 Introduction 234
Introduction 190 Concepts of data-driven customer relationship
What is the marketing mix? 190 marketing 236
Digital branding 192 Digital marketing insight 6.1
Success factors for online branding: brand The goals of marketing orchestration 238
advocacy 196 The challenge of customer engagement 239
Success factors for online branding: brand Benefits of using marketing automation to
identity 196 support customer engagement 239
Success factors for online branding: brand Customer lifecycle management strategy 241
names for online brands 197 Permission marketing 242
Product in a digital marketing context 198 Profiling leads with lead scoring and lead grading 246
1 Options for varying the core product Defining contact strategies 249
(online) 199 Data-driven marketing techniques 252
2 Options for offering digital products 200 Personalisation and mass customisation 252
3 Options for changing the extended product 201 Applying artificial intelligence and Big Data to
Digital marketing insight 5.1 support data-driven marketing 253
Zoom freemium products 201 Artificial intelligence for marketing 254
4 Conducting research online 202 Using data analysis and targeting techniques to
5 Speed of new product development 203 increase customer loyalty and value 258
6 Speed of new product diffusion 203 Determining what customers value 258
Price in a digital marketing context 205 The relationship between satisfaction and loyalty 259
Digital marketing insight 5.2 Measuring the voice of the customer in digital
Beauty Pie has created a luxury brand at discount media 260
prices 206 Using measures to differentiate customers by
1 Increased price transparency 207 value and engagement 261
2 Price uncertainty 208 Lifetime value modelling 262
3 Innovative pricing approaches 209 Product recommendations and propensity
4 Alternative pricing structure or policies 211 modelling 268
Place, channels and distribution in a digital Using social media to improve customer loyalty
marketing context 211 and advocacy 269
1 Place of purchase 212 What is social media marketing and why is it
2 New channel structures 214 important? 271
3 Channel conflicts 214 What are the main social media platforms? 272
4 Virtual organisations 215 Social media activities requiring management 273
Promotion and social media in a digital Case study 6 Buffer: from idea to paying business
marketing context 216 customers in seven weeks 275
x Contents

Summary 278 Virtual reality and augmented reality 327

Exercises 279 Content design and auditing 329
Self-assessment exercises 279 Managing and testing content 332
Exam and discussion questions 279 Online retail merchandising 333
References 279 Evaluating the impact of service quality on
Weblinks 281 e-loyalty 334
Tangibles 336
Part 3 Reliability and responsiveness 337

Digital marketing: Assurance 337

Empathy 337
implementation and practice 282 Multichannel customer service preferences 338
The relationship between service quality, customer
7 Delivering the digital customer satisfaction and loyalty 338
experience 284 Case study 7 Refining the online customer
experience at i-to-i.com 339
Learning objectives and topics 284
Summary 342
Introduction 285
Exercises 342
Structure of this chapter 285
Self-assessment exercises 342
Creating effective digital experiences 285
Exam and discussion questions 342
Planning website, app design and redesign
References 343
projects 288
Weblinks 346
Who should be involved in a digital experience
project? 291
Prototyping 292 8 Campaign planning for
Digital marketing insight 7.1 digital media 347
Success factors for delivery 293 Learning objectives and topics 347
Agile software development 293 Introduction 348
Initiation of a digital experience project 295 The structure of this chapter 348
Domain name registration 295 The characteristics of digital media 349
Selecting a hosting provider 296 1 From push to pull 350
Website performance optimisation 296 2 Interactive dialogues 351
The availability of the website 298 3 From one-to-many to one-to-some and
Defining site or app requirements 298 one-to-one 351
Business requirements 300 4 From one-to-many to many-to-many
Usability requirements 301 communications 352
Digital accessibility requirements 304 5 From ‘lean-back’ to ‘lean-forward’ 352
Personalisation 305 6 The medium changes the nature of standard
Localisation and cultural customisation 307 marketing communications tools such as
Reviewing competitors’ websites 309 advertising 353
Designing the information architecture 310 7 Increase in communications intermediaries 354
Card sorting 311 8 Integration 354
Blueprints 312 9 Timing of campaign communications has
Wireframes 312 additional ‘always-on’ and real-time marketing
Landing pages 315 components 354
Designing the user experience 316 Digital marketing insight 8.1
Elements of digital experience design 317 #OpenYourWorld shares individual’s views 355
Site navigation schemes 319 Step 1. Goal setting and tracking for interactive
Mobile design requirements and techniques 321 marketing communications 356
A. Responsive web design (RWD) 322 Terminology for measuring digital media 357
B. Adaptive design 323 Examples of digital campaign measures 362
C. Accelerated Mobile Pages (AMP) 323 Campaign response mechanisms 363
D. Progressive web apps (PWAs) 324 Online response mechanism 364
E. Native mobile apps 324 Digital marketing insight 8.2
The Internet of Things 326 What’s in a hashtag – #!? 366
 Contents xi

Step 2. Campaign insight 367 Affiliate marketing 424

Customer insight for digital marketing campaigns 367 Advantages and disadvantages of affiliate marketing 426
Step 3. Segmentation and targeting 368 Best practice in planning and managing affiliate
Step 4. Big idea, offer, message development marketing 427
and creative 372 Online sponsorship 428
Which factors affect campaign effectiveness? 373 Digital display advertising 429
Content marketing 374 What is digital display advertising? 429
Step 5. Budgeting and selecting the digital Advantages and disadvantages of display advertising 431
media mix 377 Best practice in planning and managing display
1 Level of investment in digital media techniques in ad campaigns 434
comparison to offline promotion 377 Digital messaging including email marketing and
2 Selecting the right mix of digital media mobile messaging 437
communications tools 379 What is email marketing? 437
Digital marketing insight 8.3 Opt-in email options for customer acquisition 438
Campaign tracking in Google Analytics 380 Opt-in email options for prospect conversion and
3 Level of investment in digital assets 385 customer retention (house list) 438
Step 6. Integration into overall media schedule Digital marketing insight 9.4
or plan 385 SEAT combines email with display advertising
Key activities in media selection and planning 385 to increase awareness 438
Case study 8 Global Action Plan: campaigning Advantages and disadvantages of email marketing 439
for a better world 388 Best practice in planning and managing email
Summary 390 marketing 440
Exercises 390 Mobile text messaging and mobile push
Self-assessment exercises 390 notifications 442
Exam and discussion questions 390 Social media and viral marketing 443
References 391 Viral marketing 444
Weblinks 392 Advantages and disadvantages of social media
and viral marketing 446
9 Marketing communications using Best practice in planning and managing viral
digital media channels 393 marketing 449
Learning objectives and topics 393 Digital marketing insight 9.5
Introduction 394 Is social media ‘mostly a waste of time’ and an
How is this chapter structured? 394 ‘infantile delusion’? 450
Digital marketing insight 9.1 Offline promotion techniques 450
How balanced is your referrer mix? 396 Advantages and disadvantages of using offline
Search engine marketing 397 communications to support e-commerce 451
What is SEO? 400 Incidental and specific advertising of the online
Advantages and disadvantages of SEO 403 presence 452
Best practice in planning and managing SEO 403 Case study 9 Smart Insights: how content strategy
Digital marketing insight 9.2 fuels inbound marketing to grow an online
Is SEO a zoo of Pandas and Penguins? 405 B2B service 452
Digital marketing insight 9.3 Summary 456
Reviewing the links into a site 410 Exercises 457
Paid search marketing 410 Self-assessment exercises 457
Advantages and disadvantages of paid search Exam and discussion questions 458
marketing 412 References 458
Best practice in planning and managing paid search Weblinks 460
marketing 414
Digital public relations and influencer 10 Evaluation and improvement
relationship management 417 of digital channel performance 461
What is digital or online public relations? 417 Learning objectives and topics 461
Advantages and disadvantages of online Introduction 462
public relations 419 Performance management for digital channels 463
Best practice for online public relations and IRM 419 Creating a performance management process 464
Digital partnerships including affiliate marketing 424 Defining the performance metrics framework 465
xii Contents

Tools and techniques for collecting insight, running Who owns the process? 482
processes and summarising results 469 Who owns the content? 483
Using Google Analytics to evaluate and improve Who owns the format? 483
digital marketing 469 Who owns the technology? 484
How is Google Analytics data recorded? 469 Case study 10 Learning from Amazon’s culture
Applying Google Analytics reports and measures 470 of metrics 485
Digital marketing insight 10.1 Summary 491
Focus on measuring social media marketing 474 Exercises 492
Marketing research using the internet and digital Self-assessment exercises 492
media 478 Exam and discussion questions 492
Questionnaires and surveys 479 References 492
Focus groups 480 Weblinks 493
Mystery shoppers 480
Content management process 480
Glossary 494
How often should content be updated? 481
Index 523
Responsibilities for customer experience and
Publisher’s Acknowledgements 531
site management 482

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