DMM Session2
DMM Session2
Marketing
Management
DMM - Session 2
Digital marketing
is about:
• Audiences
• Digital devices
• Digital platforms
• Digital media
• Digital data
• Digital technology
RACE – Reach, Act, Convert, Engage
A generic
DM strategy
development
process
Introduction to
Digital Marketing
Communications
Traditional Media
• Print, Radio, TV, Direct Mail, Public Relations
• Billboards, Posters, Banners
Digital media
• Digital equivalents of these traditional media
• Display ads
• Pay-per-click (PPC)
• Search engine optimisation (SEO)
• Affiliate marketing
• Email marketing
Digital Media Channels
• Online communications
techniques used to achieve goals
of brand awareness, familiarity,
favourability and to influence
purchase intent by encouraging
users of digital media to visit a
website to engage with the brand
or product, and ultimately to
purchase online or offline through
traditional media channels such as
by phone or in-store.
Display Ads
• Definition: Graphical or rich media
ad units on a web page.
• Goals: Increase brand awareness,
familiarity, favorability, and
purchase intent.
• Interaction: Encourage viewer
interaction by prompting actions
like video play, form completion, or
viewing more details before clicking
through.
Pay-Per-Click (PPC)
• Definition: Companies pay for
text ads on search engine results
pages.(SERP)
• Placement: Ads appear as
sponsored links above, to the
right of, or below natural listings.
• Payment: Marketers pay each
time a user clicks on the ad.
• Click Fraud: Multiple clicks on the
same ad may be considered click
fraud and won't incur charges
Affiliate Marketing
• Definition: Referring sites
(publishers) earn commissions from
merchants (retailers) for sales or
leads.
• Commission: Typically a percentage
of product sale price or a fixed
amount per sale.
• Payment Basis: Can also be per-
click, such as when aggregators
refer visits to merchants.
Email Marketing
• Definition: Outbound communications from
a company to prospects or customers.
• Goals: Encourage purchases or branding.
• Audience: Typically sent to existing
customers (houselist) or prospects (rented
or co-branded list).
• Types: One-off campaigns or automated,
event-based emails like welcome messages.
• Targeting: Strategies used to reach the
online audience
Targeting the Online
Audience
• Personalization: Tailoring messages based
on customer profile and past interactions.
• Website Personalization: Using landing
pages to match customer interests.
• Engagement Opportunities: Providing in-
depth content, rich media (videos, audio),
and customer community participation on
websites
Landing Page
• A specific webpage where users land after clicking on an ad or
link.
• Designed to maximize conversion rates by providing focused
messaging aligned with the ad or link's offer.
• Enhances user experience by delivering relevant information.
• Increases conversion rates by guiding users toward desired
actions, such as making a purchase or filling out a form.
• Builds brand favorability by ensuring consistency in messaging
and design.
• Keep messaging concise and focused on the offer.
• Use clear call-to-action (CTA) buttons to prompt desired actions.
• Ensure seamless navigation and mobile responsiveness for enhanced user
experience.
• Test different elements such as headlines, images, and CTAs to optimize
performance
Rich Media
• Dynamic advertisements or site content featuring animation,
sound, or interactivity.
• A display ad for a loan where users can input the desired loan amount,
triggering immediate calculation of loan costs.
• Engaging: Captures user attention with interactive elements.
• Interactive: Allows users to actively engage with content,
enhancing user experience.
• Dynamic: Provides real-time responses or animations, making
content more dynamic and impactful.
RACE
Using digital media
channels to support
business
Reach
• Build awareness of a brand, its
products and services on other sites
and in offline media and build traffic
by driving visits to web and social
media presences.
Act
• Engage audience with brand on
its website or other online
presence to encourage them to
interact with a company or
other customers.
• In many sectors, the aim of the
Act stage is lead generation, i.e.
to gain permission to market to
a prospect using email, SMS or
mobile app notifications
Convert
• Achieve conversion to
generate sales on web
presences and offline
Engage
• Build customer
relationships
through time to
achieve retention
goals.
Integration with Other Channels
• Digital channels work best when integrated with
traditional offline media and channels.
• Importance of Integration:
• Raising Awareness: Traditional media can raise
awareness of online presences during the Reach and
Act stages.
• Customer Interaction: Integration is crucial at Convert
and Engage steps, where customers may prefer
interacting with customer representatives.
Six categories of
digital communications
tools or media channels
Social Media Marketing
• Platforms: Involves customer
communications on company-owned
sites or social presences like Facebook,
X, or specialized publisher sites, blogs,
and forums.
• Can be used for broadcasting messages
to opted-in customers or partners.
• To maximize benefits, it's crucial to
initiate and participate in customer
conversations.
• Conversations can relate to products,
promotions, or customer service, aiming
to learn more about customers and
provide support, thereby enhancing
company perception.
Social Media
• Social media comprises numerous sites and tools.
• Social media sites are sophisticated software applications or web services.
• They grant users varying levels of permission and facilitate management
and storage of user-generated content.
• Many social networks incorporate messaging features.
• Users receive alerts for new content related to their interests or
connections.
• Social networks offer APIs for data exchange with other web services.
• Enables integration with other platforms and extends reach and influence.
• Social media isn't a perfect substitute for traditional marketing.
• It's not one-size-fits-all; marketers can effectively engage by taking their
message directly to consumers and focusing on traditional objectives.
What is an API
• API stands for Application Programming Interface.
• It defines a set of rules and protocols for building and
interacting with software applications.
• It allows different software programs or systems to
communicate and interact with each other.
• APIs enable developers to access and use the
functionality of another software component without
having to understand its internal workings.
• They facilitate data exchange and integration between
various applications or platforms.
6 ‘I’ s of e-marketing mix
• Digital marketing communications differ significantly from
conventional marketing communications
• Digital media enables new forms of interaction and new models for
information exchange
• Practical benefits of digital marketing
• Interactivity
• Intelligence
• Individualization
• Integration
• Independence of location
• Industry structure
Interactivity
Interactivity…
• Characteristics of Digital Medium (Deighton, 1996):
• Customer initiates contact.
• Customer seeks information or experience (pull).
• High-intensity medium with 100% attention.
• Marketer can gather and store individual responses.
• Addresses individual customer needs in future dialogues.
Interactivity…
• Traditional media: Predominantly push media with broadcasted marketing
messages.
• Online: Customer-initiated contact, seeking information (pull mechanism).
• Inbound Marketing : Customer-centric approach where customers actively seek
out information.
• Benefits: Reduces advertising wastage, targets prospects with defined needs.
• Weakness: Marketers may have less control compared to traditional
communications.
• Digital medium allows for customer-initiated interactions and personalized
experiences.
• Inbound marketing leverages customer-driven engagement to reduce wastage
and target prospects effectively.
Intelligence
• Digital media as a relatively low-cost method of collecting marketing
research on customer perceptions of products and services
• Interactions with consumers across different
• Can be stored in data lakes or data warehouses to provide insight
collectively known as ‘Big Data’
A data lake is a storage repository that holds a diversity of raw data in its native
format where it is available for analysis and reporting by people across a company.
This contrasts to a data warehouse, which contains structured data.
Individualization
• Marcom can be personalized for individuals at relatively low costs
• In traditional media where the same message is broadcasted to everyone
• Individualization done based on intelligence collected about site visitors
and stored in a database
• Personalization refers to the process of tailoring communications to
individuals.
• Ability to deliver personalized messages and respond to customer
interactions in real-time.
• Example: Amazon greets customers by name and provides personalized
recommendations based on previous purchases.
Traditional MarCom Vs Individualization
Integration
• Outbound Digital Communications:
• Complementing other channels to
communicate product/service
propositions.
• Goal: Generating new leads and
retaining existing customers.
• Inbound Digital Communications:
• Complementing other channels for
delivering customer service.
• Integration Examples: Incorporating
email response and website callback
into existing call center or customer
service operations.
Industry restructuring
• There are 2 main concepts
• Disintermediation
• The removal of intermediaries such as distributors or brokers
that formerly linked a company to its customers.
• Reintermediation
• The creation of new intermediaries between customers and
suppliers providing services such as supplier search and
product evaluation.
Independence of location
• Internet makes it possible to sell to a
country without a local sales or customer
service force
• Possibility of increasing the reach of
company communications to the global
market.
• This gives opportunities to sell into
international markets, which may not
previously have been possible.
Advantages of Digital Media
• Accountability: Utilize web analytics for tracking and assessing ad
performance. (Ex. Google Analytics )
• Testing: Easily conduct cost-effective tests on creative elements,
messaging, and offers.
• Flexibility: Modify ad copy or offers during campaigns for better results.
• Micro-targeting: Tailor messages based on audience search behaviour.
(Customize ads in Google AdWords for each searched term)
• Cost-control: Manage costs per search term and adjust bids
accordingly.(Utilize software for effective cost management)
Key challenges of digital communications
• Complexity: • Cost:
• Campaign setup requires specialized expertise for • Costs can soar, especially in
personalization and testing.
competitive sectors, exceeding €10
• In-house or agency specialists are essential for per click.
effective management.
• Competitor Response: • While costs are manageable, high
• Monitoring competitor activity demands additional competition can inflate prices.
resources. • Attention:
• Bid management tools automate bid adjustments
based on competitor analysis. • Digital ads face challenges like
'banner blindness' and low
• Technology Changes:
engagement rates.
• Ongoing training is necessary to keep up with
evolving platforms. • Engaging audiences effectively
• Google's 'Adwords Qualified Professionals' remains a persistent challenge.
certification ensures skills proficiency.
Key communications concepts for digital marketing
1. Permission marketing
2. Content marketing
3. Customer engagement
Permission marketing
• Concept:
• Seeks customer permission before engagement, offering value in return.
• Permission marketing remains crucial for CRM and audience engagement.
• Coined by Seth Godin, it's a practical foundation for online marketing.
• Message Overload: Daily marketing messages diluting effectiveness.
• Customer Expectations:
• Demand value for attention, time, and information.
• Exchange:
• B2B: Offers free reports for email addresses.
• B2C: Provides newsletters or exclusive content for engagement.
• Traditional marketing approach refers as interruption marketing
Content marketing
• The management of text, rich media, audio and video content aimed at
engaging customers and prospects to meet business goals.
• Published through print and digital media including web and mobile
platforms
• Repurposed and syndicated to different forms of web presence such as
publisher sites, blogs, social media and comparison sites.
• Good content is also essential for ‘permission marketing’
• Today, by content we refer to:
• Combination of static content forming web pages,
• Dynamic rich media that encourages interaction.
• Videos, podcasts, user-generated content
• Interactive product selectors and quizzes.
Elements of Content Marketing Strategy
• Goals for Content Engagement: Determine types of content that engage and drive conversions.
• Content Media: Text, rich media (Flash, mobile apps), audio (podcasts), and hosted/streamed video. Utilize
different format options such as HTML text, ebooks, and PDFs.
• Employ paid promotion through ads on platforms like Facebook, Google, and LinkedIn.
• Leverage free organic promotion via SEO, social media, and influencer outreach.
• Syndicate content across platforms using feeds, APIs, microformats, or embedded widgets.
• Enable interaction, commenting, ratings, and reviews for effective engagement. Monitor and manage
interactions both on the original platform and elsewhere.
• Content Management Platform: Implement a robust content management system for team collaboration
and accessibility across digital devices.
Content marketing hub
• A central branded location
where your audience can
access and interact with all
your key content marketing
assets.
• Practically, the content hub
can be a blog or new
section, an online customer
magazine or a resource
centre.
Customer engagement
• Repeated interactions through the customer lifecycle prompted by
online and offline communications aimed at strengthening the long-
term emotional, psychological and physical investment a customer
has with a brand.
• Difficulty in gaining and keeping the attention of audiences across
fragmented media landscape has made customer engagement as a
key challenge.
Understanding Engagement
• Precisely define engagement to distinguish short-term interactions from long-term
relationships.
• Importance of Long-term Engagement:
• Focus on sustaining interactions with prospects, customers, and subscribers over time.
• Navigate through numerous competing communications channels.
• Customer Engagement Defined:
• Adestra (2017): Repeated interactions strengthening emotional, psychological, and physical
investment in a brand.
• Haven (2007): Involvement, interaction, intimacy, and influence over time.
• Barriers to Engagement:
• Challenges include gaining a unified data view and lacking an integrated customer lifecycle
engagement plan.
• Incorporating Customer Conversations:
• Leverage digital media to integrate customer conversations into communications.
• Actively manage consumer participation on social networks, blogs, and forums.
Understanding Engagement…
• Credibility through User-generated Content:
• Positive sentiments expressed by consumers confer credibility on companies.
• Managing Negative Sentiments:
• Address negative comments or sentiments expressed online to mitigate
reputational risks.
• Importance of Proactive Management:
• Emphasize the need for proactive management of customer feedback
and sentiments.
• Effective engagement requires clear definitions, sustained efforts, and
proactive management of customer interactions.
Homework
• Read chapter 2 and 3